Final Assignment Part A

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

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 wo
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 prin

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 temp

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24 points possible = 8 chapters x 3 points

6 additional points are available based on the depth of thought and the appearance of the paper.
You MUST write on your paper that you did this work absolutely by yourself with no outside help and sign it
to attest to this fact.
30 points total for Part A

Income
Salary after Taxes
Interest / Dividends
Other
Total

INCOME
5150
5150

5150
EXPENSES

Savings
Fixed Expenses
Rent / Mortgages Payment
Life Insurance
Car Insurance
Medical Insurance
Loan Payment
Other
Total
Variable Expenses
Donations (Tithing, etc.)
Food
Gas
Clothing
Utilities
Cell Phone
Home Phone
Home Maintenance
Cable tv
Entertainment
Internet
Gifts
Laundry
Dry Cleaning
Charge Card Payments
Other
Total

Total Expenses
Total Surplus/Deficit *

1731
70
120
200

1731

615
450
170
275
85
75
95
85
25
15
30
20
30
155
2125
3856
1294

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ve met with Brother and Sister Hopeful and have asked them
pressed dispair concerning their situation and presented you
n order, no matter what sacrifices they have to make.

will be involved in learning correct principles for everyone's long term benefit.
ommitment to "pay as you go", but need help to know where to begin.
ll as prepare them for retirement.

es have a profit sharing program where the company contributes to his 401k
e the children are at school and brings home a net take home paycheck of $350 per month.

onth on the new car for 28 more months at 9% APR. They own their home
.82 / month payment on the 2nd mortgage at 9.5% APR.
r home 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,
aper, $30 / misc.

ke all of their payments, they have been making minimum payments,

one calls and there is significant stress in their home.
ell off and can't help much longer.

3/9, 5, 6, 7, 8, 10 that you would teach this family.

when you are discussing principles.

n help this family.

d in BrainHoney for your template.

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The changes they could make are to stop their bowling, to get rid of their home phone because
no one uses them anymore. Use less electricity. Try to drive one car. If they sold their home they would
have way more money to spend on their debt. They

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