Question
Question #1 Assess Shelly and Alan's current financial situation using all applicable financial formulas and ratios, the complete SWOT analysis to determine their financial strengths,
Question #1 Assess Shelly and Alan's current financial situation using all applicable financial formulas and ratios, the complete SWOT analysis to determine their financial strengths, weaknesses, opportunities, and threats.
Question #2 Shelly and Alan have recently lost a close friend in a car accident. They feel so sad to see their friend's wife left struggling to raise and provide for her 2 children all alone. Shelly and Alan have given some thought to the family's financial affairs should one or both of them unexpected pass away. Their wishes include: that if one spouse dies the family remains in the home, $140,000 is required for the children's post secondary education, if one spouse passed away the other would need supplemental income equivalent to 50% of the other spouse's gross income until Ally completed a post secondary degree at age 22. If they both passed away Alan's sister would become the children's guardian, would take them into her home and would require annual income of $20,000 each until Ally completed a post secondary degree at 22. Shelly and Alan would like the team to assess the amount of life insurance they would need if: 1) Shelly passed away 2) Alan passed away and 3) both pass away. *make and state any assumptions (ie. Interest earned - inflation) and ignore estate taxes
Question #3 Provide 2 options of how Shelly & Alan could use their monthly surplus cash to address any of the weaknesses, opportunities or threats identified. Provide rationale for each option and how it addresses a gap or capitalizes on an opportunity, state any information/questions you may have of the clients and clarify next steps.
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