FIN 581
Williams Case
April 3, 2019
Strengths:
- Williams’ came to you for advice on how to achieve their financial goals
- Michael has a stable job, and a long future earning period
- Michelle is self-employed and generating business
- Michael’s parents are doing well and help them financially
- They Williams’ have adequate homeowners and automobile insurance coverages
- Joan would like to assist in the educational and maintenance needs of their kids
- Michael has disability insurance and malpractice insurance that is paid for by the hospital
Weaknesses:
- Michelle is working and does not have any disability insurance
- Neither of the Williams’ have a will set up
- They have a lot of cash outflows and really depend on the $20,000 gift from Michael’s parents
- The William’s do not have any Guardianship documents in place for the children
- Do not have sufficient life insurance
- May need to assist Michael’s parents with retirement needs
Additional Information:
- Are they planning to have more children
- What kind of financial needs will Michael’s parents need assistance with in the future
- Does Michelle plan to continue working and growing her own business
- Who is the appropriate guardianship choice for the kids should anything happen to either Michelle or Michael
Goal Assessment:
Michelle and Michael have stated a few financial goals:
- Provide for Beau and Elizabeth for four years of college education
- Assist Michael’s parents in retirement as needed
- Design retirement plan to replace 70% of Michael’s income
- Plan for Madison to be cared for throughout her adult life
- Maintain adequate emergency fund (6 months)
- Prepare proper estate plan and wills
Additional goals: Obtain more life insurance, guardianship documents, and titling assets to avoid probate
The William’s will need to focus on the most important financial goals, before they begin to fund for all their financial objectives.
Financial Statements:
Michael probate estate- $60,000 including group term life insurance
Michelle probate estate- $6,000
The William’s need to decrease their cash outflows and begin saving to fund an emergency fund first. They do have a positive net worth, but very little liquid assets.
Evaluations:
Debt- The William’s have a reasonable amount of long-term debt. They should look to acquire more moderate every day cars to decrease some liabilities. They do currently hav...
