Personal Finance Case Study


Your clients are a couple both age 35. They have two small children, ages 5 and
7. They are both currently working and
have a combined gross income of $110,000.
They currently have medical insurance through their employer. One is currently investing $100 per month
into their company’s 401k Plan. The
company does not match it. The other,
does not have a retirement plan with their company. They are both very healthy but do not have
any life insurance except the group life plan with work. Each one has a death
benefit of $50,000. They have one month
worth of savings in the bank and no other investments. Their only debt is their mortgage and they
lease their vehicles. Their goals are to
make sure they plan for their kids’ education, start planning for retirement
which they hope to be at age 65 and overall make sure they are making wise
financial decisions. Their risk
tolerance is moderate. A budget analysis
shows they will be able to put $10,000 more per year towards a financial plan.