Scot and Eileen Barbee Case Case Requirements 1. Create a year-end net worth statement and annual cash flow statement for the Barbee family given the data on the next page. 2. Use the financial ratios discussed in the book to identify the Barbees strengths and weaknesses. 3. Help answer a list of questions that Scot and Eileen have about the industry of financial planning. 4. Identify the Barbees top spending areas using charts from Excel. 5. Upload Word and Excel documents. Questions 1. Scot and Eileen are very sensitive to commission charges and expenses. Furthermore, they are concerned with the recent horror stories they have heard about in the financial services industry. Assuming that you are a CERTIFIED FINANCIAL PLANNER Practitioner, explain to your clients the different types of fee structures a planner can charge and elaborate on the process required to get your designation. Finally, explain fiduciary responsibility and why it is or isnt important. 2. Scot and Eileen are curious about financial record keeping for their important documents. Please write a summary advising Scot and Eileen on what to do with important and confidential financial records. Pease use three outside references and list the sources for these specific questions. 3. Scot and Eileen feel like they will live in their home forever. They are considering refinancing their home. Scot and Eileen were told by a mortgage broker that they would qualify for a 4.6% rate on a 15 year or 5.2% on a 30 year mortgage. Provide an analysis showing the pros and cons of each decision. Remember to look at financial ratios. Remember that Scot and Eileen are very visual learners. Assume that refinance costs are $3,500 and can be rolled into the new loan if needed. 4. Scot and Eileen might receive a settlement in the amount of $800,000. Scot and Eileen want to know how to make sure there money is protected from a bank failure and that the money stays extremely liquid. Please help educate Scot and Eileen on the FDIC. Scot and Eileen would like to invest $300,000 of the settlement funds in a diversified portfolio of mutual funds. Their risk tolerance is moderately aggressive. Please choose 5 mutual funds for the clients and explain why the funds were picked.

Here is their finanical data:

The Barbees Financial Information:

Eileen's Monthly Salary 4,000

Jewelry 3,500

401(k) Account (His) 94,657

Dividend/Interest Income 57

401(k) Account (Her) 44,581

Mortgage Payment (PITI) 1,777

Boat 8,000

Lexus Payment 593

Toyota Sienna value 14,000

Toyota Sienna payment 388

Lexus value 32,000

Furniture 12,300

Visa Credit Card Payment 195

Lexus Loan 28,000

Sears Credit Card Payment 200

Brokerage Account 3,700

Cable 80

Alarm System 39

Visa CC balance 5,237

Life Insurance 100

Internet 100

Auto fuel, maintenance, repairs 300

Cellphone 130

Scot's Monthly Salary 5,444

Water and sewer 80

Sears CC 12,200

Entertainment 600

Auto Insurance 200

Child Care 1,400

Home Repairs 200

Groceries 500

Checking (Joint) 4,000

Bank CD (Joint) 2,000

Dining Out 400

Hobbies 300

Savings Account 2,300

Roth IRA (H) 8,295

Club Dues 150

Dry Cleaning 160

Charity 300

Primary Mortgage 180,000

Landscaping 200

Maid 420

Parking and Tolls 45

Dividend/ Interest Reinvestment 47

Student Loan Payment 280

Scot's 401(k) contributions 300

Student Loans H 37,000

Eileen's 401(k) contributions 250

Cash Savings Contribution 300

Toyota Auto Loan 10,500

Scot's Roth Contributions 120

Total Taxes (FICA AND INCOME TAX) 570

Primary Home (VALUE) 271,980