Personal Financial Planning Management Case
erinceyb
447teamassignmentbudgetandbalancesheet.xlsxBalance Sheet
| Raj & Nikita Patel | ||
| Balance Sheet (Jan 1, 2018) | ||
| Assets | ||
| Current Assets | ||
| Checking Account | $1,657.00 | |
| Savings Account | $2,978.00 | |
| Cash Value of Term Life Insurance ($44,000 policy) | $0.00 | |
| Total Current Assets | $4,635.00 | |
| Retirement Savings | ||
| 401k (Raj) | $32,093.00 | |
| IRA (Raj) | $9,515.00 | |
| IRA (Nikita) | $28,637.00 | |
| Total Retirement Savings | $70,245.00 | |
| Tangible Assets | ||
| 2013 Volvo S40 | $25,000.00 | |
| 2014 BMW X3 | $27,000.00 | |
| Personal Belongings | $13,000.00 | |
| Priya's Violin | $1,500.00 | |
| Raj's Cutom Golf Clubs | $2,100.00 | |
| Jewelry | $2,500.00 | |
| Total Tangible Assets | $71,100.00 | |
| Total Assets | $145,980.00 | |
| Liabilities | ||
| Current Liabilities | ||
| Credit Card 1 Balance (APR 16.0%) | $16,700.00 | |
| Credit Card 2 Balance (APR 22.0%) | $1,100.00 | |
| Pay Day Loan (APR 75.0%) | $600.00 | |
| Furniture Store Loan (APR 22.0%): Original Value $2,200 | $1,900.00 | |
| Property Taxes Payable | $1,084.00 | |
| Total Current Liabilities | $21,384.00 | |
| Non-Current Liabilities | ||
| Auto Loan - 2013 Volvo S40 (Original loan of $17,800 at 5.5% APR for 5 years) | $11,500.00 | |
| Auto Loan - 2014 BMW X3 (Original loan of $19,000 at 5.0% APR for 5 years.) | $14,500.00 | |
| Total Non-Current Liabilities | $26,000.00 | |
| Total Liabilities | $47,384.00 | |
| All loans have fixed interest rates (APR) and monthly payments. | ||
| All loan payments use an equal payment amortization schedule. | ||
| Raj Patel receives life insurance coverage equal to one year of his gross salary. | ||
| This policy is through his employer. Nikita is listed as the beneficiary. |
Budget
| Raj & Nikita Patel | ||||
| 2017 Budget | ||||
| Income | Annual | Monthly | ||
| Raj's Gross Salary (3.0% annual increase) | $44,000.00 | $3,666.67 | ||
| Nikita's Gross Salary (3.5% annual increase) | $24,000.00 | $2,000.00 | ||
| Total Income | $68,000.00 | $5,666.67 | ||
| Income & Payroll Taxes Withheld | ||||
| Raj - FICA | $3,366.00 | $280.50 | ||
| Nikita - FICA | $1,800.00 | $150.00 | ||
| Income Taxes Withheld (MFJ) | $6,015.00 | $501.25 | ||
| Total Payroll & Income Tax Withheld | $11,181.00 | $931.75 | ||
| Disposable Income | $56,819.00 | $4,734.92 | ||
| Regular Saving & Investment | ||||
| Raj's 401(k) Contributions | $880.00 | $73.33 | ||
| Raj's IRA Contributions | $412.00 | $35.00 | ||
| Nikita's IRA Contributions | $0.00 | $0.00 | ||
| Total Regular Savings & Investment | $1,292.00 | $108.33 | ||
| Living Expenses | ||||
| Rent Payments | $13,200.00 | $1,100.00 | ||
| Utilities (electric, water) | $2,400.00 | $200.00 | ||
| Cable and Internet | $1,500.00 | $125.00 | ||
| Auto loan payment (Nikita) | ||||
| Auto loan payment (Raj) | ||||
| Credit card payments (minimum payment $390/month) | $4,680.00 | $390.00 | ||
| Child Care | $7,200.00 | $600.00 | ||
| Personal expenses | $1,800.00 | $150.00 | ||
| Groceries | $12,000.00 | $1,000.00 | ||
| Dining Out | $4,800.00 | $400.00 | ||
| Golf and Swim Club Dues | $2,700.00 | $225.00 | ||
| Swimming Lessons (Aziz): 6 months | $300.00 | $50.00 | ||
| Volin Lessons (Priya) | $960.00 | $80.00 | ||
| Entertainment | $1,200.00 | $100.00 | ||
| Auto Insurance Premiums | $3,000.00 | $250.00 | ||
| Renter's Insurance Premiums | $180.00 | $15.00 | ||
| Vehicle Expenses (gas, maintenance, repairs) | $4,800.00 | $400.00 | ||
| Other | $1,680.00 | $140.00 | ||
| Total Living Expenses | ||||
| Discretionary money or (shortfall) | ||||
