Description
we were working on the case study and know i have to write them up
1- answer the 3 question in the attach file 1&2 can be answered in the same word file
1 page at least for Q1
1.5-2 page at least for Q2
Q3 please use the template to answer it
simple language is required
you writing must be in form if you are Financial planner to clients
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Explanation & Answer
Attached.
Running head: DEBT REPAYMENT LOAN
1
Course
Student’s Name
Institutional Affiliation
Luke and Jen
Financial Plan
DEBT REPAYMENT LOAN
2
Contents
Goal and objectives ......................................................................................................................... 3
College funding analysis ................................................................................................................. 3
Tax benefits of a brokerage account and 529 college plan ............................................................. 3
Personal financial statement ........................................................................................................... 4
Cash flow statement .................................................................................................................... 4
Debt Repayment Plan ..................................................................................................................... 6
DEBT REPAYMENT LOAN
3
Goal and objectives
Luke and Jen's main goal is to save money for their children's academic in future and saving
money for old after retirement.
The second goal they need to find a plan on how to repay the loans conveniently.
College funding analysis
Computer-based model is a customized program which is simulated to operate within specified
directions. The program is designed to deduct a fixed amount of the money toward another
account for education purposes. The program is very secure and enables an individual to save a
significant amount of money for particular purposes especially for paying future school fees for
the children.
The program is quite convenient for business operations and helps an individual to save an
amount of money for a particular project in the future. Annual saving is the amount set aside
from budget and used for specific functions in the future. Luke and Jen can select a fixed saving
plan where they contribute annually over the period they want in future. Saving helps to
accumulate a lot of funds that can be used for investment purposes in life. Having multiple
saving plans reduces wastage of funds on some issues which do not have any advantage to the
individuals.
Saving money provides peace of mind, this is because it helps an individual to plan for some
issues which need to be done after the retirement period. Have alternative investment plan can
help people to raise extra fund and engage in other leisure activities. Good investment plan raises
high income for people to live a happy life in future without getting straining up. Saving money
in IRA or 401(k) enables to earn interest which can accumulate for future use. The interest
earned while investing in 401(k) plan is approximately 8%. After five years, the accumulation
will be significant enough to facilitate investing in other sectors to generate income. Luke and
Jen can adopt a specific which can help them pay the school fees for the students in a convenient
way.
Tax benefits of a brokerage account and 529 college plan
DEBT REPAYMENT LOAN
4
A brokerage account is very attractive due to the following reasons. It enables one to determine
a point where they have to pay tax on the capital gains. It allows investor not to pay tax on
appreciation on the investment. Tax liability is recognized at a point where one decides to sell a
stake. Brokerage accounts do not limit the amount of withdraws on the investment. There is no
heavy penalty in the use of the plan.
Regarding the level of interest earned in each saving plan. 529 college plan is like investing in
Roth IRA hence it earns huge interest on the income. At the end of the plan, 529 saving plan
provide the best return in terms of income earned.
The Brokerage account can enable an account holder to earn a tax break after recognition of a
capital loss on the stock loss or depreciation. It also allows flexibility in terms of withdrawal by
an account holder.
Most investors combine a variety of accounts which they can use in the process. For instance, if
you decide to invest in a plan, you should take into consideration flexibility and the benefit that
will derive from in...