CS 1.docx - Financial Planning Case 1 Main Financial...

Financial Planning Case 1
Main Financial Planning Issues:
 Situation 1: Fran and Ed Blake are 43 and 47 years old with a college freshman daughter
and a high school sophomore son. They have $22,000 in savings for their kid’s education.
They must figure out whether this is enough money for both children to finish college.
Fran Blake’s elderly mother is in a nursing home and cannot cover the full monthly cost
of living there. Both Fran and her husband Ed must figure out how to ensure these costs
will be covered for the remainder of her life. Fran and Ed have made annual deposits to a
retirement fund, and have enough money to support themselves presently, but may need
to access the funds.
 Situation 2: Patrick Hamilton lost his job due to a company merge - moving its offices to
another state. Patrick has only 3 months of living expenses in his savings account, with
flexibility in the short term, but he must figure out his next course of action before the
three months are up and he goes bankrupt.