Client Scenario

Client Scenario #2 â€“ The Case of the Stewart Family Gary Stewart and his wife Debbie, both age 32, have been married for twelve years and have a 2- year old son, Grant. Gary is a mid-level manager at a Fortune 500 company and currently earns $85,000 per year. Debbie is a teacher and is paid $35,000 per year. They own their own home and are making the monthly mortgage and property tax payments. They also have 3 vehicles, a 2018 Corvette, a 2015 Lexus SUV and a 2015 BMW 5 series. Gary, Debbie and Grant are covered under Garyâ€™s Health Insurance plan at the Fortune 500 Company. Gary has $1,100 withdrawn from his pay check each month for his coverage. The company pays $2,900 of his health insurance for each month for the gold plan as a non-taxable fringe benefit. You have prepared the Stewartsâ€™ tax return for the past five years. When you delivered the latest return, Gary asked your advice concerning insurance. Keep in mind that Gary is very savvy at statistics, and analyzing business transactions. Gary and Debbie do not have a formal insurance plan. To date, they have simply tried to save whenever possible. Their questions for you arose after and insurance agent tried to sell them a single- premium deferred annuity. However, after talking to you, they realize that they need to develop a formal insurance plan. Put together an insurance plan for the Stewarts. They would like to hear your opinion and thoughts about their financial situation. Send your recommendations to svaldes3@mtsac.edu by May 9th, 2022 at 5pm. Assignments sent after 5pm will receive an automatic grade of zero. Please set aside the appropriate time for this project and do not wait till the last minute. This assignment will be graded on the following ï‚· Spelling, punctuation, grammar, sentence structure and presentation of information. ï‚· Professional attitude and client communication. ï‚· Professional tone of the memo. ï‚· Technical aspects and accuracy of the financial advice and recommendations given ï‚· Demonstration of knowledge and education through the plan you outline based on what you have learned from the course. ï‚· Unlike previous assignments Submission of this assignment will not result in full cre

Client Scenario #1 The Case of the Stone Family Here is the Stone family- Bill, age 30, and Linda, age 29. Linda is due with her first child in six months and plans to have one more child within two years after the birth of the first child. Bill has a degree in engineering and works for a small engineering firm. Billâ€™s annual salary is $140,000. Linda is a CPA and works in the tax department of a small local CPA firm. Lindaâ€™s annual salary is $65,000. Both Bill and Linda are required to share in the cost of their health insurance. Each has a car approximately three years old with six monthly payments of $600 each remaining. The Stones purchased their first house last year for $450,000, obtaining a $28,000 mortgage for thirty years at 6% APR. Linda plans to stay home for the first year after the birth of each child, if possible. A partner at the CPA firm told Linda that she could work ten hours a week at home on firm clients if she desires. Listed below is a breakdown of their annual gross income.Gross IncomeBillâ€™s Salary $140,000Lindaâ€™s Salary 65,000Interest/ Dividend Income 2,500Total $207,500Expenditures and Savings Housing a $40,800Utilities 6,400Food 6,800Entertainment b 12,500Clothing and Personal Care 8,700Medical Care and Insurance 18,200Recreation and Vacations 12,000Transportation c 18,500Taxes d 68,500Misc. Purchases 7,500Savings 7,600$207,500Additional & Supplemental Notes & Informationa includes principal, interest, taxes, insurance b includes meals outside the home c includes car payment, insurance, gas, maintenance, taxesd includes federal, state, and social securityOn the following page is a breakdown of expenses as a percentage Housing 19.7%Utilities 3.1Food 3.3Entertainment 6.0

Expense breakdown continued â€“ Clothing and Personal Care 4.2Medical Care and Insurance 8.8Recreation and Vacations 5.8Transportation 8.9Taxes 33.0Miscellaneous 3.6Savings 3.6100.0%

* The stone family has heard about you as an up and coming emerging financial professional. They would like to hear your opinion and thoughts about their financial situation.

* Please set aside the appropriate time for this project This assignment will be graded on the following ï‚· Spelling, punctuation, grammar, sentence structure and presentation of informationï‚· Professional attitude and client communicationï‚· Professional tone of the memoï‚· Technical aspects and accuracy of the financial advice and recommendations given ï‚· Demonstration of knowledge and education through the memo based on what you have learned from the courseï‚· Unlike previous assignments Submission of this assignment will not result in full credit.