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As a financial planner, you have been asked by the bishop to help a family in the ward. You have met with Brother and Siste
to gather all of their financial information and present it to you. During the last meeting they expressed dispair concerning th
with the following information. They have expressed a sincere desire to put their financial life in order, no matter what sacrifi
You have suggested a family council, and they have explained to their 3 children that everyone will be involved in learning co
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 retirem
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 progr
in the amount of $150 / month. Sister Hopeful does a small part time job out of their home while the children are at school a
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 mo
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 2
When they purchased their home 8 years ago they made a substantial downpayment, and their home is currently worth $17
The average monthly expenses that they have provided show the following: $450 / food, $155 / several lessons for each ch
$70 / life insurance, $200 / medical insurance, $120 / car insurance for both cars, $25 / internet, $95 / cable TV, $275 / all ut
$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
and in some cases, they have missed payments. They are always receiving debt collection phone calls and there is significa
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 lon
Amount
$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
$216,915.80
APR %
12.0%
15.0%
11.0%
6.0%
7.0%
12.0%
15.0%
9.5%
6.0%
Current Payments
Payment Remaining Description
$158.00
48
Credit Card #1
$34.67
36
Credit Card #2
$274.37
60
Credit Card #3
$280.85
84
Credit Union Loan
$200.00
28
Car Loan
$92.72
24
Gas Credit Card
$65.07
36
Medical Bill
$582.82
142
2nd Mortgage
$1,149.00
147
1st Mortgage
$2,837.50
Total debt
After reading your written report, the bishop has asked you to serve on a ward council welfare committee to help this faithful
As a minimum, the committee has been asked to prepare a monthly budget of their current situation, a proposed budget to h
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 sugg
and you will receive up to 10 points for a detailed plan to eliminate their debt and establish a retirement plan (5 + 10 + 10 = 2
Submit all of your completed spreadsheet for grading.
313957060.xlsx, 04/14/2016
e ward. You have met with Brother and Sister Hopeful and have asked them
meeting they expressed dispair concerning their situation and presented you
eir financial life in order, no matter what sacrifices they have to make.
n that everyone will be involved in learning correct principles for everyone's long term benefit.
have made a commitment to "pay as you go", but need help to know where to begin.
hem now, as well as prepare them for retirement.
me pay. He does have a profit sharing program where the company contributes to his 401k
their home while the children are at school and brings home a net take home paycheck of $350 per month.
ent of $200 / month on the new car for 28 more months at 7% APR. They own their home
APR, and $582.82 / month payment on the 2nd mortgage at 9.5% APR.
yment, and their home is currently worth $175,000.
50 / food, $155 / several lessons for each child, $30 / laundry, $20 / dry cleaning, $15 / gifts
rs, $25 / internet, $95 / cable TV, $275 / all utilities, $75 home phone service,
e, $35 / newspaper, $30 / misc.
they cannot make all of their payments, they have been making minimum payments,
ebt collection phone calls and there is significant stress in their home.
ily is not very well off and can't help much longer.
4800
350
5150
2837.5
0.5509709
1675
4512.5
540
$5,052.50
61800
1030
4120
388
400
10864
0.0864
0.0432
points for a proposed budget along with suggested changes to meet your plans,
nd establish a retirement plan (5 + 10 + 10 = 25 points total).
313957060.xlsx, 04/14/2016
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 H
to gather all of their financial information and present it to you. During the last meeting they expressed dispair concerning their
with the following information. They have expressed a sincere desire to put their financial life in order, no matter what sacrifices
You have suggested a family council, and they have explained to their 3 children that everyone will be involved in learning corre
During your previous visit you helped them cut up all of their credit cards. They have made a commitment to "pay as you go", b
You have been asked to prepare a comprehensive financial plan that will help them now, as well as prepare them for retirement
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 program
in the amount of $150 / month. Sister Hopeful does a small part time job out of their home while the children are at school and
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 more
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 2nd
When they purchased their home 8 years ago they made a substantial downpayment, and their home is currently worth $175,0
The average monthly expenses that they have provided show the following: $450 / food, $155 / several lessons for each child,
$70 / life insurance, $200 / medical insurance, $120 / car insurance for both cars, $25 / internet, $95 / cable TV, $275 / all utilitie
$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 hav
and in some cases, they have missed payments. They are always receiving debt collection phone calls and there is significant
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 longer
Amount
$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
$216,915.80
APR %
12.0%
15.0%
11.0%
6.0%
7.0%
12.0%
15.0%
9.5%
6.0%
Current Payments
Payment Remaining Description
$158.00
48
Credit Card #1
$34.67
36
Credit Card #2
$274.37
60
Credit Card #3
$280.85
84
Credit Union Loan
$200.00
28
Car Loan
$92.72
24
Gas Credit Card
$65.07
36
Medical Bill
$582.82
142
2nd Mortgage
$1,149.00
147
1st Mortgage
$2,837.50
Total debt
You have been asked to identify 3 principles you have learned from each of the Chapters 1, 2, 3/9, 5, 6, 7, 8, 10 that you would
Give examples of how it would help them and why you would teach these specific principles.
You are to identify principles from these chapters and not just do the math. Math isn't involved when you are discussing princip
Submit your written report as if you were addressing the bishop and explain to him how you can help this family.
You should have a minimum of a lengthy paragraph for each principle. Use the format provided in BrainHoney for your templat
met with Brother and Sister Hopeful and have asked them
essed dispair concerning their situation and presented you
rder, no matter what sacrifices they have to make.
have a profit sharing program where the company contributes to his 401k
the children are at school and brings home a net take home paycheck of $350 per month.
$9,634.67
h on the new car for 28 more months at 9% APR. They own their home
2 / month payment on the 2nd mortgage at 9.5% APR.
ome is currently worth $175,000.
several lessons for each child, $30 / laundry, $20 / dry cleaning, $15 / gifts
$95 / cable TV, $275 / all utilities, $75 home phone service,
er, $30 / misc.
$2,969.78
$530.22
Food
Lessons
laundry
Dry cleaning
gifts
life insurance
nedical insurance
Car insurance
Internet
Cable
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Misc.
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
5150
615
540
450
155
30
20
15
70
200
120
25
95
275
75
85
170
85
35
30
2550
350
155
30
$158.00
$34.67
$274.37
$280.85
$200.00
$92.72
70
200
120
275
85
85
1910
158
274
280.85
200
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Sell second car
$65.07
65.07
$582.82
582.82
$1,149.00
1149
$2,837.50 $2,709.74
$5,387.50 $4,619.74
3500
$530.26
816.49
$28.30
Current Budget
Total Net Income
5,150.00
Amount Owed
$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
APR %
12.0%
15.0%
11.0%
6.0%
7.0%
12.0%
15.0%
9.5%
6.0%
$216,915.80
Payments
Remaining
48
36
60
84
28
24
36
142
147
615.00
$
$
$
$
$
$
$
$
$
$
450.00
155.00
30.00
20.00
15.00
70.00
200.00
120.00
25.00
95.00
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Public transit pass
Misc.
$
$
$
$
$
$
275.00
75.00
85.00
170.00
85.00
35.00
$
$
30.00
2,550.00
$
$
$
$
$
$
$
$
$
$
$
158.00
34.67
274.37
280.85
200.00
92.72
65.07
582.82
1,149.00
2,837.50
5,387.50
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Payoff strategy- Allocate surplus budget at 15%- savings, 85% to next low
savings reach 15% of net income- at that point, full additional surplus devote
Sell second car (3500 dollars), eliminate Gas Credit card and credit card #2,
annual Public transit pass ($450)- allocate remaining resale cash, as well
Begin saving for next year's Transit pass
Surplus cash is equal to:
530.22
After transit pass, 80.22
615.00
67.91
350.00
155.00
10.00
$
$
$
$
15.00
70.00
200.00
60.00
275.00
$
$
85.00
85.00
$
$
$
37.50
30.00
2,055.41
$
$
$
$
$
$
$
$
$
$
$
$
158.00
274.00
280.85
200.00
65.07 Payoff time
582.82 Amount Paid
1,149.00 On Medical Bill
2,709.74
4,765.15
384.85
4.12
449.92
Amount Owed
$5,499.98
$0.00
$11,810.95
$18,292.13
$4,335.14
$0.00
$0.00
$48,626.38
$116,620.11
iminate Gas Credit card and credit card #2, use remaining funds to purchase
50)- allocate remaining resale cash, as well as new surplus, to Medical bill.
Begin saving for next year's Transit pass
APR %
12.0%
0.0%
11.0%
6.0%
7.0%
0.0%
0.0%
9.5%
6.0%
Payments
Remaining
43
0
55
79
23
0
0
137
142
1,854.64
$
$
$
$
$
$
$
$
$
$
$
$
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Public transit pass
Misc.
$ 275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,065.12
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
615.00
77.62 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
-
$ 158.00
$
$ 274.37
$ 280.85
$ 200.00 Payoff time
$
- Amount Paid
$
- on car loan
$ 582.82
$ 1,149.00
$ 2,645.04
$ 4,710.16
$ 439.84
$ 17,115.28
Surplus after monthly payoff allocated to savings
735.50
6.93
639.84
$ 4,436.02
Amount Owed
APR %
$4,756.99 12.0%
$0.00 0.0%
$10,615.77 11.0%
$16,946.35 6.0%
$0.00 0.0%
$0.00 0.0%
$0.00 0.0%
$47,208.02 9.5%
$112,598.90 6.0%
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
$
$
$
$
$
$
$
$
$
$
$
$
615.00
103.87 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
25.00
-
$ 1,309.62
$
275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,116.37
$
158.00 Payoff time
$
- Amount Paid
$
274.37 on CC #1
$
280.85
$
$
$
$
582.82
$ 1,149.00
$ 2,445.04
$ 4,561.41
$
588.59
$ 16,009.28
6.62
746.59
$ 4,939.83
Amount Owed
$0.00
$0.00
$9,341.74
$15,552.76
$0.00
$0.00
$0.00
$45,709.16
$108,434.82
APR %
12.0%
0.0%
11.0%
6.0%
0.0%
0.0%
0.0%
9.5%
6.0%
Payments
Remaining
0
0
41
65
0
0
0
123
128
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
$
$
$
$
$
$
$
$
$
$
$
$
615.00
127.57 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
25.00
-
$
275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,140.07
$
$
$
274.37 Payoff time
$
280.85 Amount Paid
$
- on CC#3
$
$
$
582.82
$ 1,149.00
$ 2,287.04
$ 4,427.11
$
722.89
$ 20,126.70
Donations
Savings
Food
Lessons
laundry
Dry cleaning
gifts
life insurance
Medical insurance
Car insurance
Internet
Cable
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Public transit pass
Misc.
Amount Owed
9.84
997.26
$0.00
$0.00
$0.00
$13,475.59
$0.00
$0.00
$0.00
$43,419.21
$102,228.18
APR %
12.0%
0.0%
11.0%
6.0%
0.0%
0.0%
0.0%
9.5%
6.0%
Payments
Remaining
0
0
0
55
0
0
0
113
118
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
$ 9,812.07
615.00
112.48 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
25.00
-
$ 3,755.66
$
275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,124.98
$
$
$
$
$
$
$
$
$
$
$
$
$ 19,050.02 $ 13,873.90
10.73
$ 1,293.20
Amount Owed
APR %
$0.00 12.0%
$0.00 0.0%
$0.00 11.0%
$0.00 6.0%
$0.00 0.0%
$0.00 0.0%
$0.00 0.0%
$40,682.66 9.5%
$95,033.67 6.0%
Payments
Remaining
0
0
0
0
0
0
0
102
107
615.00
140.57 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
25.00
-
$ 5,342.10
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Public transit pass
Misc.
$ 275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,153.07
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Amount Owed
APR %
$
$0.00 12.0%
$
$0.00 0.0%
$
$0.00 11.0%
$
$0.00 6.0%
$
$0.00 0.0%
$
$0.00 0.0%
$
$0.00 0.0%
$ 582.82 Payoff time
24.29
$0.00 9.5%
$ 1,149.00 Amount Paid $ 1,847.93
$77,896.81 6.0%
$ 1,731.82 On 2nd Mortgage
$ 3,884.89
$526.18
$ 1,265.11
Dollar amout remaining after 24 months,
paid from savings
$ 45,499.32
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
$
$
$
$
$
$
$
$
$
$
$
$
615.00
198.85 Balance:
350.00
155.00
10.00
15.00
70.00
200.00
60.00
25.00
-
$ 8,189.60
$ 275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,211.35
$
$
$
$
$
$
$
$
- Payoff time
$ 1,149.00 Amount Paid
$ 1,149.00 On 1st Mortgage
$ 3,360.35
$ 1,789.65
28.51
$ 2,938.65
$ 83,774.58
APR %
12.0%
0.0%
11.0%
6.0%
0.0%
0.0%
0.0%
9.5%
6.0%
Payments
Remaining
0
0
0
0
0
0
0
0
0
Donations
Savings
Food
Lessons
laundry
Dry cleaning
gifts
life insurance
Medical insurance
Car insurance
Internet
Cable
$
$
$
$
$
$
$
$
$
$
$
$
Utilities
Home Phone
Cell Phone
Gas
Bowling League
Newspaper
Public transit pass
Misc.
$ 275.00
$
$
85.00
$
85.00
$
$
$
37.50
$
30.00
$ 2,790.00
Debts
Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage
Total Monthly Obligations
Surplus
615.00
772.50
350.00
155.00
10.00
20.00
70.00
200.00
60.00
25.00
-
$
$
$
$
$
$
$
$
$
$
$ 2,790.00
$ 2,360.00
Balance:
$ 15,396.19