Final Assignment Part B

As a financial planner, you have been asked by the bishop to help a family in the ward. You have met with Brother and Siste
to gather all of their financial information and present it to you. During the last meeting they expressed dispair concerning th
with the following information. They have expressed a sincere desire to put their financial life in order, no matter what sacrifi

You have suggested a family council, and they have explained to their 3 children that everyone will be involved in learning co
During your previous visit you helped them cut up all of their credit cards. They have made a commitment to "pay as you go
You have been asked to prepare a comprehensive financial plan that will help them now, as well as prepare them for retirem
Brother and Sister Hopeful are both 35 years old.

Brother Hopeful has a good job and brings home $4,800 / month in net take home pay. He does have a profit sharing progr
in the amount of $150 / month. Sister Hopeful does a small part time job out of their home while the children are at school a

They currently have 2 cars. The older car is paid off, but they still have a payment of $200 / month on the new car for 28 mo
but they have a first mortgage payment of $1,149.00 / month on the loan at 6% APR, and $582.82 / month payment on the 2
When they purchased their home 8 years ago they made a substantial downpayment, and their home is currently worth $17

The average monthly expenses that they have provided show the following: $450 / food, $155 / several lessons for each ch
$70 / life insurance, $200 / medical insurance, $120 / car insurance for both cars, $25 / internet, $95 / cable TV, $275 / all ut
$85 / cell phone program for both, $170 / gas for both cars, $85 / bowling league, $35 / newspaper, $30 / misc.
They pay $615 in tithing and offerings and $35 to other charities.

They have given you the following information concerning their debt. Because they cannot make all of their payments, they
and in some cases, they have missed payments. They are always receiving debt collection phone calls and there is significa
Sister Hopeful's mother has made some of the payments for them, but her family is not very well off and can't help much lon

Amount
$6,000.00
$1,000.00
$12,619.08
$19,225.00
$5,200.00
$1,969.78
$1,876.97
$49,612.40
$119,412.57
$216,915.80

APR %
12.0%
15.0%
11.0%
6.0%
7.0%
12.0%
15.0%
9.5%
6.0%

Current Payments
Payment Remaining Description
$158.00
48
Credit Card #1
$34.67
36
Credit Card #2
$274.37
60
Credit Card #3
$280.85
84
Credit Union Loan
$200.00
28
Car Loan
$92.72
24
Gas Credit Card
$65.07
36
Medical Bill
$582.82
142
2nd Mortgage
$1,149.00
147
1st Mortgage
$2,837.50

Total debt

After reading your written report, the bishop has asked you to serve on a ward council welfare committee to help this faithful
As a minimum, the committee has been asked to prepare a monthly budget of their current situation, a proposed budget to h
eliminate all of their debt and prepare them for retirement.

You will receive up to 5 points for the budget of their current situation, up to 10 points for a proposed budget along with sugg
and you will receive up to 10 points for a detailed plan to eliminate their debt and establish a retirement plan (5 + 10 + 10 = 2
Submit all of your completed spreadsheet for grading.

278582997.xlsx, 08/05/2015

rd. You have met with Brother and Sister Hopeful and have asked them
ng they expressed dispair concerning their situation and presented you
ancial life in order, no matter what sacrifices they have to make.

t everyone will be involved in learning correct principles for everyone's long term benefit.
e made a commitment to "pay as you go", but need help to know where to begin.
now, as well as prepare them for retirement.

ay. He does have a profit sharing program where the company contributes to his 401k
r home while the children are at school and brings home a net take home paycheck of $350 per month.

f $200 / month on the new car for 28 more months at 7% APR. They own their home
R, and $582.82 / month payment on the 2nd mortgage at 9.5% APR.
nt, and their home is currently worth $175,000.

food, $155 / several lessons for each child, $30 / laundry, $20 / dry cleaning, $15 / gifts
25 / internet, $95 / cable TV, $275 / all utilities, $75 home phone service,
35 / newspaper, $30 / misc.

cannot make all of their payments, they have been making minimum payments,
ollection phone calls and there is significant stress in their home.
not very well off and can't help much longer.

cil welfare committee to help this faithful family.

current situation, a proposed budget to help them progress forward, and a detailed plan to

s for a proposed budget along with suggested changes to meet your plans,
tablish a retirement plan (5 + 10 + 10 = 25 points total).

278582997.xlsx, 08/05/2015