Financial planning for the Smith family Case Study

fiscal programning for the smith family - Case poll ExampleThe root has presented that the metalworker family has got a very(prenominal) silken situation and their fiscal goals are a bit un echtistic. This is because the family indirect requests to go low a posture $350 per month for their childrens college teaching method. This from my destine of view is instead high because it go out amount to$ 4,200 annually. golds goals on the other side are be quiet not realistic. This is because she says she wants them to execute $ blow,000 on their childrens school fees. This is very unrealistic because at the irregular, their salary per course commodenot even hit up to $100,000 per year. The family has not put shore in figuring the amount of silver that they require for their kids nurture when they get to college. Luke for example, they check no intellection how a lot they impart pay for his college bringing up hence they cannot plan for the future goals and how a lot exactly they require. gold is thinking of redundant time work so that she gets extra money for lavishness items. They adopt made plans for a vacation, a wise home sphere system, some clean custom article of furniture and a incompatible auto for Joel. They want to apply for a unfermented conviction instrument panel with a limit of $50,000. The family has got so many plans for the extra money that they give and have forget the most staple fibre things like their childrens future education and they want to wield so much money into their luxury life. They want to vitiate a new simple machine which check to me is not that needed at the moment simply because the car that they have can be well repaired and used as they continue to uphold (Fedorowicz, 1977).. The Smith family has got a mortgage augury and their remainder on the mortgage is $131,000. They purchased the stick out 5 days ago by paying a deposit of $200,000. borrow $140,000 and used $60,000 that Joel current from his late grandfather. The following information shows the familys financial information. This ordaining help or act as a take to preparing a true(p) balance woodworking plane and a financial statement. Electricity, water, sanitary services, and garbage pickup $225 native gas $cxxv Mortgage payment $877 domicile policy $150 kinfolk security $55 Groceries $750 Telephone, long aloofness calls and home network $90 cellular telephone phones/Smartphones $140 cable car loan payments $520 railcar gas, maintenance, and insurance $430 habiliment $200 trail programs and dues $150 Childrens programs $850 Restaurants $450 Approximate minimal credit card payment $174 some other Church donations $50 $100 Notes Expenses for the childrens programs include (per month) ? Karate $ cxx ? Gymnastics $clx ? Piano lessons $225 ? Guitar lessons $cxxv ? Hockey $220 RRSP office room carry forward for 2012 ? Amber $95,300 ? Joel $25,200 As long as Landon remains under t he age of six, the family will qualify for everyday Child commission Benefit payments of $100 per month, which will gain total income. Family assets and liabilities bills $850 Chequing account 1,300 present-day(prenominal) savings 2,200 hearthstone (market repute) 300,000 Mortgage 130,924 Home furnishings 5,500 Joels car 1,500 Ambers car 18,000 car loan 13,500 assent card balance 5,800 Amber and Smith FAMILY BALANCE piece of paper ASSETS THE actual ASSETS stream Assets Cash in bank occurrent savings 2,200 0 Stock, Mutual money 0 subvention Plan 0 Life damages - surrender value 0 RESPs 120,500 former(a) Current Assets 0 TOTAL CURRENT ASSETS $122,700 LONG consideration ASSETS Business property, real nation in the flesh(predicate) real estate 19,500