12

Chart Title

10

Description Credit Card Credit Card Credit Card Credit

#1
#2
#3
Union Loan
Payments
48
36
60
84
Remaining
Current
158
34.67
274.37
280.85
Payment
APR %
0.12
0.15
0.11
0.06
Amount
6000
1000
12619.08
19225

Car Loan

Gas Credit
Card
24

Medical Bill

28

36

2nd
Mortgage
142

1st
Mortgage
147

200

92.72

65.07

582.82

1149

0.07
5200

0.12
1969.78

0.15
1876.97

0.095
49612.4

0.06
119412.57

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 Sister
to gather all of their financial information and present it to you. During the last meeting they expressed dispair concerning the
with the following information. They have expressed a sincere desire to put their financial life in order, no matter what sacrific

You have suggested a family council, and they have explained to their 3 children that everyone will be involved in learning cor
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 retireme
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 progra
in the amount of $150 / month. Sister Hopeful does a small part time job out of their home while the children are at school an

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 mor
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 2n
When they purchased their home 8 years ago they made a substantial downpayment, and their home is currently worth $175

The average monthly expenses that they have provided show the following: $450 / food, $155 / several lessons for each chil
$70 / life insurance, $200 / medical insurance, $120 / car insurance for both cars, $25 / internet, $95 / cable TV, $275 / all util
$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 h
and in some cases, they have missed payments. They are always receiving debt collection phone calls and there is significan
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 long

Amount

APR %

Current
Payment

Payments
Remaining

$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

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

$158.00
$34.67
$274.37
$280.85
$200.00
$92.72
$65.07
$582.82
$1,149.00

48
36
60
84
28
24
36
142
147

$216,915.80

$2,837.50

Description
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total debt

After reading your written report, the bishop has asked you to serve on a ward council welfare committee to help this faithful f
As a minimum, the committee has been asked to prepare a monthly budget of their current situation, a proposed budget to he
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 sugge
and you will receive up to 10 points for a detailed plan to eliminate their debt and establish a retirement plan (5 + 10 + 10 = 25
Submit all of your completed spreadsheet for grading.

278606712.xlsx, 08/05/2015

Current Budget
$ 4,800.00
$ 150.00
$ 350.00
Total Income $ 5,300.00

Internet,
utilities,
hobbies,
Services and
insurances

Mortgage
Credits and
loans

New Budget
Expenses to be cut
1. First Mortgage
2.Home Phone Service
3. Cable T.V.
4. Nwes Paper

Total
Expenses
$ 5,677.50

$ 2,840.00
Variance
$ (377.50)

New Total Expenses

$2,837.50

Variance

Eliminate Debt
RETIREMENT SOLUTION
Now they Have Enough to pay all their debt on time.
They have $599 to pay of credit cards faster
$599
CC #2
Month 1
Month 2
Medical Bill.
599 plus
payments of
paid off Debts
$791.46
5 months

9 Months

Month 1
Month 2
Month 3
Gas Card
Month 1
Month 2
Month 3
Month 4
CC #1
Month 1
Month 2
Month 3
Month 4
Month 5

$401.00
-$198.00 Paid Off with $198 Left over to pay towrds Medical Bill

$1,277.97
$678.97
$79.97
$1,370.78
$771.78
$172.78
-$426.22 Paid Off with $426 left to pay towrds CC#1
$5,208.54
$4,417.08
$3,625.62
$2,834.16
$2,042.70

278606712.xlsx, 08/05/2015

1 yr 5 mths

Month 6
Month 7
Month 8

$1,251.24
$459.78
-$331.68 Paid Off with $331.68 Left over

Reevaluate after house is sold or 1st year.

Current budget dosn't include the cost of the
sold house

278606712.xlsx, 08/05/2015

met with Brother and Sister Hopeful and have asked them
ssed dispair concerning their situation and presented you
der, no matter what sacrifices they have to make.

be involved in learning correct principles for everyone's long term benefit.

mitment to "pay as you go", but need help to know where to begin.
s prepare them for retirement.

ave a profit sharing program where the company contributes to his 401k
he children are at school and brings home a net take home paycheck of $350 per month.

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

veral lessons for each child, $30 / laundry, $20 / dry cleaning, $15 / gifts
95 / cable TV, $275 / all utilities, $75 / home phone service,

all of their payments, they have been making minimum payments,

calls and there is significant stress in their home.
ff and can't help much longer.

Amount

APR %

Current Payment

$6,000.00
$1,000.00
$12,619.08
$19,225.00
$5,200.00
$1,969.78
$1,876.97
$49,612.40

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

$158.00
$34.67
$274.37
$280.85
$200.00
$92.72
$65.07
$582.82

Payments
Remaining
48
36
60
84
28
24
36
142

Description
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage

$97,503.23
$1,688.50
mittee to help this faithful family.
n, a proposed budget to help them progress forward, and a detailed plan to

ed budget along with suggested changes to meet your plans,

ment plan (5 + 10 + 10 = 25 points total).

278606712.xlsx, 08/05/2015

be cut
$
$
$
$

1,149.00
75.00
95.00
35.00

$
$

1,354.00 CUT
4,323.50

976.50

eir debt on time.

Amount

APR % Current Payment

Payments
Remaining

Description

owrds Medical Bill

$6,000.00

12.0%

$158.00

48

Credit Card #1

$1,000.00
$12,619.08
$19,225.00
$5,200.00
$1,969.78
$1,876.97
$49,612.40

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

$34.67
$274.37
$280.85
$200.00
$92.72
$65.07
$582.82

36
60
84
28
24
36
142

Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage

$97,503.23

$1,688.50

278606712.xlsx, 08/05/2015

278606712.xlsx, 08/05/2015