The Mike & Maria Roman Case Deliverables Each of the following deliverables is to be written up as if a letter to Mike and Maria. In each case provide a review of the facts that are relevant to the advice that you are providing, the advice that you offer, and the rationale for that advice as well as any specifics in the way of action steps.

Installment #1: Perform a capital needs analysis for the couple at age 60, showing your work and explaining your rationale. Please include: - A summary of the resources that the Romans already have lined up for retirement income, only include information that affects the case or relates to the recommendations. - A summary of the external information affecting the Romans retirement plan (again, only the information or facts that affect the case and your recommendation) - Guidance to the Romans as to how much and how best (type of contribution/ account) to save to cover whatever retirement income gap they are currently facing.

Fact Set: Mike & Maria Roman Retirement Case Mike and Maria have come to you, a financial planner, for help in developing a plan to accomplish their financial goals. From your initial meeting together, you have gathered the following information.

PERSONAL BACKGROUND AND INFORMATION COLLECTED

Mike and Maria Roman live in the countryside outside of Orlando, Florida and operate a baseball academy on their property. They have a quaint home with a baseball field to the left of their house and two covered baseball batting and pitching cages.

Mike played professional baseball for 15 years and now provides baseball instruction through Romans Baseball Institute (RBI) to children ages six to the early twenties. Mike currently coaches several college baseball players and is one of the most respected hitting and pitching coaches in the area. He also coaches a 9-year-old team and a 14-year-old team, both competing at the major division level. Maria has the tireless job of scheduling all the lessons.

Mike is 44 years old and loves his job. He is also an avid hunter and fisherman. Maria is also 44 years old and has done a wonderful job of raising their two kids, while helping with the family business. The Children:

Emily is 20 years old and is a Junior at Florida State University where she is double majoring in anthropology and communications. She has always been an excellent student and has a full academic scholarship. She also works part time to earn additional spending money. Her brother, Michael, is 17 years old and is a junior at Mission High School, where he plays shortstop on the baseball team and is hitting over 300 for the year.

Romans Baseball Institute (RBI) Mike started RBI seven years ago after he left professional baseball. He has built his reputation, as well as that of RBI over that time period. RBI is one of the premier baseball academies in the area. The primary source of income for RBI is fees from baseball lessons. Lessons are priced at $70 per hour. Mike has three other coaches who help him provide lessons (Mickey, Mr. Joe, and Joey). His dad, Mickey, who is now retired from the Post Office, taught him how to play baseball, coached him growing up, and works with him now that he is retired. Mr. Joe also coached Mike as a child and now coaches for Mike. Joey is 20 years old, played baseball for Mike growing up and played in college during his freshman year before getting injured. RBI generates $245,000 in gross annual revenue and has the following expenses: Coaching fees to his coaches $60,000 Utilities $2500 Field Maintenance $7000 Equipment (balls, etc.) $1000 Other Expenses $3000 Mike works 1,500 hours and the other coaches total 2,000 hours. His three coaches work the following number of hours and are paid $30 per hour: Mickey (Mikes dad) - 1100 Joey - 500 Mr. Joe - 400

Mikes coaches have worked with him for at least five years. Mikes net income equals the fees less the expenses listed above. He reports his revenue and expenses on Schedule C of his personal income tax return. Economic Information Inflation is expected to be 2.75% annually. The yield curve is slightly upward sloping, but relatively flat. We (you) will anticipate a 7.8% annualized investment return rate The economy is in a steady slow growth expansion phase with moderate unemployment. Bank Lending Rates 15-year mortgage rate is 3.0%. 30-year mortgage rate is 4.0%. Secured personal loan rate is 12.0%. Health Insurance Mike and Maria are currently covered under the Major League Baseball policy. The plan includes a family deductible of $12,600 at a cost of $500 per month. Consideration should be given to how this will be changing once Mike and Maria are each respectively eligible for coverage under Medicare. Retirement goal Mike would like to retire at age 60 and quit working. He and Maria would like to continue living in the house they currently live in and enjoy a very similar lifestyle. Pension and Social Security income 1. Mike met the requirements for the MLB minimum pension of $22,000 per year at his age 62, which is what he understands will increase by a percentage equal to projected inflation each year thereafter. Payments will continue throughout both his and his spouses life, continuing to go to Maria even if Mike predeceases her. Mike also has the option to take his pension as a lump sum distribution of $230,000 in the current year. Mike expects his Social Security benefits will equal $30,000 in today's dollars at is Social Security full retirement age, which is age 67. Maria does not have 40 quarters of Social Security coverage. Mickey Roman Mickey is Mikes dad and is an old school baseball coach. He turned 70 on December 22, 2018. He has a pension payment from the USPS of $2,000 per month and he and his wife Martha (Mikes mom) receive a monthly payment from Social Security of $2,200 and $1,100 respectively. He also has an IRA with a balance of $85,000 as of December 31, 2021. Since Martha will continue to receive Social Security and his pension in the event he dies, he has named his grandson Michael as the beneficiary of his IRA. Mickey also has Exxon stock that was distributed from a qualified plan 30 years ago. The distribution was a lump-sum distribution in which the FMV of the stock from the plan was $35,000. Mickey deposited the stock in his brokerage account and included $20,000 in his taxable income in the year of the distribution, based on the Form 1099-R. Mickey still owns the stock, which is now worth $324,340 and is held in the same brokerage account. He is hoping to leave it to Mike when he dies.

Statement of Income \& Expenses (for 2021) Statement of Financial Position on 1/1/2022 (despite dates on st Statement of Income \& Expenses (for 2021) Statement of Financial Position on 1/1/2022 (despite dates on st