Prepare an investment plan for your casefamily. You must assess the clients needs and prepare an investment plan for the clients based on the data provided.

Case Analysis: Melissa Edmonds

Introduction:

Below is a case study of Melissa Edmonds. She represents a typical young professional in the wealth building stage of their financial life. The case study will allow you to practice analyzing a situation, using financial calculations and writing suitable recommendations. Begin by reading their background and start making note of Melissas goals and concerns.

Background:

Names: Melissa Edmonds (23), educator

Financial Situation:

Melissa graduated last year with a teaching degree. She plans on continuing to take courses ultimately to earn her Masters degree. This will move her up the pay range, and possibly get

into administration. She has may financial goals at this time including:

Moving form renting into her own home or condo

Continue to pay off her debts

Start a basic investment plan

Have a plan for emergencies, and unexpected events

Melissa is currently making $34,000/years with an extra $1,200 for coaching the girls golf team. She and her college roommate share an apartment, so her bills are very reasonable. Fortunately, she lives very frugally and her take home pay of $2,150 allows her to pay all of her bills and still have about $800 to $900/month left over. Melissa were introduced to you by a friend of hers, a current client of yours, who invited them to your retirement seminar that you hosted. After agreeing to a face-to-face meeting at your office, she prepared the following summary of her financial data and returned it to you.

The Numbers:

Net Worth Melissa Edmonds As of 12/31/2017 Total S 7.000 Fixed Assets Savings Checking Money Market Total Fixed Assets $ $ 8.000 Variable Assets Roth IRA Mutual Funds 403(b) balance Total Variable Assets $ 61 431 $ 66,550 $ 153,577 $ 281558 Personal and Other Assets Home Vehicle Personal Property Total Personal and Other Assets $ $ $ $ 800 500 1.300 Total Assets $ 290,858 Liabilities Mortgage (30 year 6%) Car Loan (9%) Credit Cards (188) Student Loans (3.5%) Total Liabilities S $ 5 $ $ 7,500 2.000 14,000 23,500 Net Worth $ 267,358 Melissa Edmonds As of 12/31/2017 Melissa Cash Inflows Earned Income Salary Girls Golfing Coach Subtotal $ 34,000 S 1,200 $ 35,200 Investment Income Interest Subtotal 3836 $ $ 386 Total Cash Inflows $ 35,586 Cash Outflows Lifestyle Expenses Mortgage payment Rent payment Car Loan Credit Card payment Subtotal $ $ 7.200 $ 7,500 S 2.000 S 16.700 Qualified Savings 403(b) contributions Subtotal $ $ 720 720 Taxes Federal Income Tax State Income Tax Social Security Tex-employment Medicare l'axes Subtotal $ S $ S S 3.520 1.760 2.108 2.108 9.496 Total Cash Outflows $ 26,916 Surplus/Delicit) $ 8,670 Net Worth Melissa Edmonds As of 12/31/2017 Total S 7.000 Fixed Assets Savings Checking Money Market Total Fixed Assets $ $ 8.000 Variable Assets Roth IRA Mutual Funds 403(b) balance Total Variable Assets $ 61 431 $ 66,550 $ 153,577 $ 281558 Personal and Other Assets Home Vehicle Personal Property Total Personal and Other Assets $ $ $ $ 800 500 1.300 Total Assets $ 290,858 Liabilities Mortgage (30 year 6%) Car Loan (9%) Credit Cards (188) Student Loans (3.5%) Total Liabilities S $ 5 $ $ 7,500 2.000 14,000 23,500 Net Worth $ 267,358 Melissa Edmonds As of 12/31/2017 Melissa Cash Inflows Earned Income Salary Girls Golfing Coach Subtotal $ 34,000 S 1,200 $ 35,200 Investment Income Interest Subtotal 3836 $ $ 386 Total Cash Inflows $ 35,586 Cash Outflows Lifestyle Expenses Mortgage payment Rent payment Car Loan Credit Card payment Subtotal $ $ 7.200 $ 7,500 S 2.000 S 16.700 Qualified Savings 403(b) contributions Subtotal $ $ 720 720 Taxes Federal Income Tax State Income Tax Social Security Tex-employment Medicare l'axes Subtotal $ S $ S S 3.520 1.760 2.108 2.108 9.496 Total Cash Outflows $ 26,916 Surplus/Delicit) $ 8,670