Carlton Refour
1/11/15
Professor Keyes
Personal Finance

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 items that intend to purchase.

2. The finance goals that I would determine to be the most important to Jimmy and Bethany are to purchase a house, set up a college fund for their children and start their own business. The least important are to finance a major vacation and to finance a vacation home. It would not be smart to invest in a vacation overseas or a vacation spot especially when you are trying to have children and purchase a home. They will be able to do that further down in life when their money will provide them to do so.

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