Discussion Case 1 Page 30
1. If I were serving as the couple’s financial advisor, I would first tell them to think and determine their financial health; Secondly I would tell them to establish their financial goals and know how much they need to save; Third I would advise the couple to map out and brainstorm a plan of action of keeping a budget. Next, I would tell them to install and execute their plan. The last thing for me to tell them would be for them to proofread and make sure their plan is ready to go. These steps are very important because they teach the basic guidelines in setting financial goals which will help Jimmy and Bethany calculate how much money they have and how much they will need to save for future ...view middle of the document...
3. The four common concerns that should guide the development of their financial plan are manage the unplanned, accumulate wealth for special expenses, cover your assets and save for retirement. These four common concerns relate to principles 4,5 and 7 because they include making sure you have insurance and also they include making sure you have enough money to invest and also money in the bank just in case of emergencies.
Discussion Case 2 Page 61
1. When working with a financial planner the assessments that Tim and Jill should expect are to determine their financial health, know how much money they need to save, and keep a budget. These assessments are definitely necessary because they have grandchildren and I am sure that they will give them money for school, cars etc.
2. The Taylors can use this information to know how much money they have saved in case of emergencies, vacations or paying for things for their grandchildren.
3. A budget ensures that they will have enough to help their grandchildren because it disciplines them in their spending that way they will not overspend and therefore they can help their grandchildren.
4. I would tell them that they can buy something luxurious every now and then but that they will need to keep saving up money that way they will not need to be worried about not having enough money. When grandchildren are involved buying luxurious things can be bought on special occasions not everyday or every other week.
5. Tim and Jill should find a planner for their retirement assets because most of the time adults do not know how to manage money so they find a financial advisor or planner to guide them.
6. The Taylors need to track their expenses more closely and their big expenses are not likely to remain the five reported by the average household.