Life Situation Financial Data Pam, 43 Josh, 45 Children ages 16, 14, and 11 Mont
ID: 2639248 • Letter: L
Question
Life Situation
Financial Data
Pam, 43
Josh, 45
Children ages 16, 14, and 11
Monthly income $4,900
Living expenses $4,450
Emergency fund $5,000
Assets $262,700
Liabilities $84,600
With three dependent children, the Brocks are assessing their life insurance. Pam has $5,000 of coverage. Josh has life insurance coverage equal to approximately eight times his annual salary.
With approximately 20 years to retirement, Pam and Josh Brock want to establish a more aggressive investment program to accumulate funds for their long-term financial needs. Josh does have a retirement program at work. This money, about $110,000, is invested in various conservative mutual funds.
In addition, the Brocks established their own investment program about four years ago, and today they have about $36,000 invested in conservative stocks and mutual funds. In addition to their investment program, the Brocks have accumulated $11,000 to help pay for the children
Life Situation
Financial Data
Pam, 43
Josh, 45
Children ages 16, 14, and 11
Monthly income $4,900
Living expenses $4,450
Emergency fund $5,000
Assets $262,700
Liabilities $84,600
With three dependent children, the Brocks are assessing their life insurance. Pam has $5,000 of coverage. Josh has life insurance coverage equal to approximately eight times his annual salary.
With approximately 20 years to retirement, Pam and Josh Brock want to establish a more aggressive investment program to accumulate funds for their long-term financial needs. Josh does have a retirement program at work. This money, about $110,000, is invested in various conservative mutual funds.
In addition, the Brocks established their own investment program about four years ago, and today they have about $36,000 invested in conservative stocks and mutual funds. In addition to their investment program, the Brocks have accumulated $11,000 to help pay for the children
Explanation / Answer
1. i would recoomend family whole life insurance along with his own coverage.i would also reccomend medical insurance coverage.
2. strenghts are that he has very less amount of liabilities, thus his net assets is higher, he has invested good amont of money in mutual funds though conservative.
weakness are that they have no mediclaim insurance, they have no family whole life insurance policy.
3. For short period of time i will not recommend for equity maerket investment, but i would suggest for bond market or cash market investment. for younger son i would recommend for partial equity investment too. he can opt through mutual fund for long period of time.
4. i would recommend:
assets class allocation% risk% return%
equity 45% 22% 10%
bond 40% 12% 6%
gold (metals) 15% 14% 8%
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