Taylor and Joe have hired you to deliver some financial expertise and advice.
They are 32 years old and have two children, ages 6 and 7, and live in
Denver, Colorado. They work as engineers at a transportation company and currently earn $110,000 each (after-tax). In your initial meeting with them, they stated the following financial goals:
1. Establish an adequate emergency fund
2. Pay off current debts
3. Purchase a 4 bedroom, 3 bathroom home in the Highlands Ranch area of Denver, where this type of home averages about $375,000 (they want to put down 20%
as a down payment and finance the rest using a 4%, 30-year fixed rate mortgage) 

4. Create a college fund for their two children (they plan for each child to enroll
at the University of Colorado when they turn 18 and have estimated the total cost of college at $45,000 for each child)

5. Establish an investment plan that will grow to $3,000,000 when they retire at age 65.
Family Financial Information
Assets
Checking $7,000
Savings $20,000
Cars $45,000
Liabilities
Student Loans $30,000
Car Loans $25,000
Credit Cards $6,000
Monthly Outflow:
Rent $2,500
Insurance $200
Utilities $300
Food $450
Daycare $400
Kid Essentials $150
Gas/Maintenance $225
Credit Card Payments $500
Student Loan Payments $275
Car Payments $500
Entertainment $200
Deliverables: Points:
1 Given the age, marital status, household makeup, and employment situation of this family,
list the specific short-term and long-term financial goals and activities this family should be focused on.
Be specific (For example, what dollar amount should they have in their emergency fund? Why that amount? Etc.)
2 Explain to this family how safety, risk, income, growth, and liquidity affect an investment program. Be sure
to mention the specific types of risk that are inherent to investments.
3 Recommend the percentage of growth assets that this family should be invested in given their investment time horizon (and age).
Explain how you came up with this number and what types of growth assets are available to them.
4 Recommend some strategies this family could take to start chipping away at their current debt balances.
5 Assuming a 7.5% return on investments, show this family how much they should be investing each month to fund their 1
education and retirement goals (show your TVM calculations). Be sure to explain to them how various economic conditions
could derail these goals, using the current economic climate as an example (the yield curve is an excellent reference point).
6 When talking with Joe, you found his risk tolerance level to be a bit on the aggressive side.
Compare the advantages and disadvantages of investments that carry less risk to those
that carry more risk. Be sure to mention the relationship between bond prices
and interest rates given the unusual current economic climate. Further, be sure to explain to him how to compare
the returns of municipal bonds to the returns of other investment products (no calculations needed here, just explanation).
7 Given this family will likely need to invest in order to meet their long-term financial goals, explain the long-term and
short-term stock investment strategies that are available to them. Be sure to include the benefits and risks of these strategies.
Moreover, explain the types/classifications of stocks they will want to include in their portfolio (blue chip, growth, income, etc.)
and provide some specific recommendations within each type/classification.
8 Taylor has heard a lot about shorting stock in the news lately. Explain this process to her, including advantages and disadvantages.
9 Joe is thinking about purchasing some property that he can rent out for real estate income. Please share a few ideas
and key performance metrics that he can use to compare investment properties and make good decisions in regard to cash flow.
10 Joe wants to learn a bit more about the cryptocurrencies he keeps seeing in the news.
Explain the advantages and disadvantages of adding this type of asset to an investment portfolio.
Recommend some specific cryptocurrencies in which this family could invest as part of their portfolio.
11 Calculate the monthly payment this family would need to make on their mortgage (show your TVM calculations).
Explain how much interest will be paid over the life of this loan. Additionally, explain what would change if the family
were to add $700 extra to this payment each month. Show the amortization schedules you created to answer these questions.
12 Recalculate this family's monthly outflow assuming your recommendations are implemented. Be sure to present
this new "budget" line-by-line, in the same format presented above. (Note: if your new monthly outflow
is greater than your monthly inflow from their incomes, please adjust your recommendations as they do not have
any interest in changing employment or taking on additional jobs.) (Note 2: It's possible that their long-term investment goals are not
reasonable - if that's the case, make sure you tell them that and revise your monthly outflows accordingly).
Format:
Your Excel calculations should be submitted for my review. However, your client deliverable must be professional
and client-ready. This can be written up in Word, Keynote, PowerPoint, etc. No matter the software you choose for
your presentation, all recommendations must be both specific and actionable