BUS 215 Week 4 Discussion 1, Financial Planning Case
Read the Financial Planning Case at the end of Chapter 13, “First Budget, Then Invest for
... [Show More] Success!” Answer the three questions listed below. Post your position in the discussion board in at least 200 words. Respond toat least two of your classmates’ postings.
How would yourate the financial status of the Garners before the air conditioner broke down?
I would rate the financial status poor because there was no emergency funds saved for these kind of things. It is important tohavesome kind of savings put tothe side for emergencies. Instead of putting all of the money aside for vacations they should havebeen splitting it for both vacation and an emergency fund. Having another route togo in case things like this happen can be important. The saying “younever know what will happen next” is so true.
The Garners’ take-home pay is over $4,500 a month. Yet, after all expenses are paid, there is only a $220 surplus each month. Based on the information presented in this case, what expenses, if any, seem out of line and could be reduced toincrease the surplus at the end of the month?
There are a few area that they can cut the funds down so that their surplus would increase at the end of the year the areas that I see are gifts and donations, recreation and entertainment, and there clothing fund. The amounts that I would suggest them spend in each area are:
Gifts and donations – 100 monthly saving 250
Recreation and entertainment- 200 monthly saving 500
Clothing- 100 monthly saving 130
The area that could save them the most money by cutting back would be recreation and entertainment. At the end their surplus for savings and investments would be 880 plus the initial 220 that they had budgeted at first.
Given that both Joe and Mary Garner are in their mid-30s and want toretire when they reach age 65, what type of investment goals would be most appropriate for them?
There are a few options that they can look intofor information and what would be best for them. My suggestion is tofirst see if there employers offer 401k plans if so get information of if they match the amount that they put in tothe 401k plan or not. This good be a great start on for them I would also look intoother plans such as mutual funds, and IRA’s because these haveless risk. [Show Less]