Question: Peter is married and has two children He wants to
Peter is married and has two children. He wants to be sure that he has sufficient life insurance to take care of his family if he dies. Peter’s wife is a homemaker but attends college part time pursuing a law degree. It will cost approximately $ 40,000 for her to finish her education. Since the children are teenagers, Peter feels he will only need to provide the family with income for the next 10 years. He further calculates that the household expenses run approximately $ 35,000 per year. The balance on the home mortgage is $ 30,000. Peter set up a college fund for his children when they were babies, and it currently contains sufficient funds for them to attend college. Assuming that Peter’s wife can invest the insurance proceeds at 8%, calculate the amount of insurance Peter needs to purchase.
Answer to relevant QuestionsMarty and Mary have jobs and contribute to the household expenses according to their income. Marty contributes 75% of the expenses and Mary contributes 25%. Currently, their household expenses are $ 30,000 annually. Marty ...Considering the insurance benefits needed to provide $ 40,000 over the next 15 years, plus the additional $ 330,000 of insurance coverage, what amount of insurance coverage is needed? How do mutual funds operate? Who manages mutual funds? How are coupon or dividend payments handled by the mutual fund? Can investors incur capital losses with mutual funds? Describe the return risk trade offs among bonds, mutual funds, and real estate investments. What are bonds? How do bonds provide a return to investors?
Post your question