You met these prospects from a referral from a good client. They are meeting with you to help them get their house in financial house in order. Notes from your first meeting: Persynal: Kathy, age 49 - Kathy was a top performing Talent Recruiter at XYZ company. Her success gathered the attention of the highly sought after ABC company. She just started there in a similar role, but with slightly higher pay and much better career prospects. Her salary is $100,000 with \$50,000 annual bonus. John, age 51 - John is a Pharmacist. He worked part-time so he could stay at home with the kids. He just went back to work full time after the kids went to college. Salary was $50,000, but just inereased to $100,000 after going back to full time. Penelope and Arthur - Kathy and John's twin children, ages 22 Goals and concerns: - Kathy and John were both raised in families that value education. It was very important to them that Penelope and Arthur be able to go to college without incurring any debt. - With a combination of their own savings and generous gifts from the grandparents, Penelope and Arthur started their first year of college this fall. Kathy and John are concerned that their choice to prioritize education savings may have compromised their retirement. - They are willing to save all of John's additional income and tighten their budget to save the required amount. - They are also concerned about the market and want to ensure the retirement nest egg that has already been accumulated is sufficiently protected. - They expect to need $140,000 in pre-tax retirement income. They want to travel in retirement and possibly buy a second home somewhere warm - They have no pensions, and both want to their plan to include Social Security. - Kathy and John are also interested in assessing their insurance needs now that the kids are off to college. They are worried about dying with their kids still in college Financial Info: Assets - Checking/Savings - $30,000 - Penelope Cash College Savings - \$5,000 - Penelope Prepaid 529 - $80,000 - Arthur Cash College Savings - \$5,000 - Arthur Prepaid 529 - $80,000 - Kathy Old 401(k)$400,000 - Jeff Current 401(k)$150,000 - Jeft Roth IRA - \$2,000 - Home - \$500,000 Liabilitics - Mortgage - $200,000,4%,15 years left Income (annual) - Kathy Salary - \$100,000 - Kathy Bonus - $50,000 - John Salary - $100,000 Expenses (monthly) - Essential - $6,000 - Lifestyle - $4,000 Savings (annual) - Kathy 401(k) Savings - $7.500 (plus a $7,500 match), 70\% in equities - John 401(k) Savings 55,000 (plus a $5,000 match): 75% in equities - What are the risk exposure the family faces? -. - - What are the possible solutions (include products if appropriate)? - What are the future exposures they may face as they move through the Life-Cycle