The Green Family Introduction Today is June 15, XXXXXXXXXXYou are a Senior Associate on a partnership track at Fox Financial in Philadelphia, PA. Joe and Susan Green recently hired Fox Financial to...

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just write why they should not get a new carand explain has you are finacial planer and they are clinet.Please let me know if you have questionand also show calculation if neededplease don't you any out side imformation



The Green Family Introduction Today is June 15, 2021. You are a Senior Associate on a partnership track at Fox Financial in Philadelphia, PA. Joe and Susan Green recently hired Fox Financial to help them gain control of their finances, set realistic goals, and develop a comprehensive financial plan. They are concerned about saving enough for retirement, their children’s education, and confided that every month seem to spend more than they make. Your notes are below, and a follow up meeting is in two weeks. Your task is to analyze their financial information, identify and evaluate their goals and objectives, and develop an appropriate financial plan. General Meeting Notes Joe and Susan met in college, have been married for 10 years, and live in the suburbs of Philadelphia. Joe is 38 and is an engineer with a local construction company. Susan is 35, works part time, and is a paralegal with a small regional law firm. They know that they need to work on their finances. Quite simply, they know they have a huge issue with their spending habits and should not live paycheck to paycheck. Even though Joe earns $120,000 annually and Susan earns $30,000 annually, they have no idea where their money is spent. There is little money left in their joint checking account at the end of each month, and at times, they have been forced to draw on their home equity line of credit to make ends meet. The couple has several credit cards, and collectively they carry a balance of $25,000 at 21%. Joe purchases what he wants when he wants, and Susan would prefer to use cash for purchases and pay off their credit cards in full sooner rather than later. Joe admits that he is the spender, and Susan always seems to be the one that tries to save money. This is a sore spot in their marriage. Susan’s parents declared bankruptcy while she was growing up, and it had a permanent and lasting impact on the way she views money. She hates having debt or owing anyone anything. They have two children, Mark and Alyssa, ages 9 and 7. Susan works part time so she can put the children on the school bus in the morning and be home when they come home from school. Eventually, she would like to work full time to earn more money. Assets and Liabilities The Greens have a small checking and savings account at a local bank. They have $2,000 in their checking account, $4,000 in their savings account, and a $1,000 CD. They also have $100,000 in a brokerage account, invested in five technology stocks. Joe would like to invest in Bitcoin while Susan would prefer investments with a guaranteed rate of return. Joe and Susan bought their house seven years ago. It is in a great neighborhood, within a great school district. Their home is worth $350,000. Their mortgage was originally for 30 years, $240,000 at 4.625%. Their home is modestly furnished, and they estimate that their home furnishings are worth $7,000. Ideally, they would like to have a larger home and move to a nicer home on the other side of town. They have looked at a few houses and seem to be gravitating toward homes priced at $600,000. Joe would prefer to buy a beach home in Ventnor, New Jersey. They are hoping that you can provide some financial guidance on the feasibility of these important financial decisions. They have taken a line of credit against their house and have utilized about $65,000. The minimum monthly payment is $400 at 6.125%. They have used their home equity line of credit when they come up short on cash from time to time or to purchase things they cannot afford on their monthly income. Joe knows that the balance has built up and isn’t overly concerned. Susan mentioned that she would like to pay it off within five years. Each of their cars is 7 years old with approximately 60,000 miles. Joe has firmly stated that he works hard and deserves a luxury SUV. Susan would also like a new car. Joe’s car is worth $30,000 and Susan’s is worth $20,000. They still owe $20,000 on Joe’s car and $15,000 on Susan’s car. Other Information The overall rate of inflation is 2% and college tuition inflation is 4%. Joe believes that retirement is a long way off and they have not yet begun to save for it. Both Susan’s and Joe’s employers have a 401(k) plan, but neither of them participates. Their firms match up to 4% of an employee’s salary dollar for dollar. They believe that there are many other things that are more important and that they have plenty of time to save for retirement. Susan’s younger brother Steven has been in and out of rehab many times. He currently rents a room in an older woman’s home but must move out at the end of the month. He has asked if he could move in with Joe and Susan. Unfortunately, Steven has fallen behind in his car payments and his car will be repossessed unless he pays off the $5,000 loan balance. Steven has bounced from one job to another and currently works as a cook at a local restaurant. Joe and Susan each carry a $250,000 term life insurance policy, with each other as the beneficiary. Joe’s father was diagnosed with Alzheimer’s several years ago and is in a nursing home. Thankfully, he has a long-term care policy which covers all of his expenses. The Greens pay 22% in federal taxes, and 3% as Pennsylvania Residents. Local taxes are 1.25%. They pay $3,000 annual property taxes on their home. Finally, Joe and Susan would like to take a family vacation each year. The kids would like to go to Disney World this year. They don’t want to disappoint their kids and estimate that it will cost approximately $10,000 for this trip.
Answered Same DayNov 17, 2021

Answer To: The Green Family Introduction Today is June 15, XXXXXXXXXXYou are a Senior Associate on a...

Rochak answered on Nov 18 2021
104 Votes
The financial planning of the couple is not good because they don’t spend by planning things, this is because Joe who is more like a spender on whatever he wants to without thinking twice. Also, the debt level of the couple is very high because they owe around $25,000 for the credit cards which has a cost of 21%, and also they have a property mortgage of $240,000 at 4.625% for 30 years.
The goals and objectives of the couple which include purchasing a bigger home which will cost $600,000, the other goal which they have is to buy two cars one for Joe which will cost $30,000 and the other for Susan which will cost $20,000, this will be over and above the current loan which they have on their previous cars which are $20,000 on Joe’s car and $15,000 for Susan’s car. One more goal of the couple is a vacation each year which will costs approximately $10,000...
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