Imagine that you are the financial advisor for a family of five, consisting of a father, a
Question:
Imagine that you are the financial advisor for a family of five, consisting of a father, a mother, and three young children (ages six, eight, and twelve). Currently, only the mother, Carol, is employed and earning a $50,000 annual salary as the father is paralyzed due to an automobile accident last year. Carol has also had some health issues recently, including heart ailments. Fortunately, they have about $1.5 million in investments, which were inherited from Carol's parents when they passed away three years ago.
In this time of great uncertainty, Carol is seeking your advice as to what needs to be done to make sure that her family will have adequate cash flow from investment assets in case she loses her job due to her health issue.
Initial post: As her financial advisor, discuss the options she has available concerning safeguarding her investment, minimizing the maintenance cost and the taxes for the trusts, estates, and beneficiaries, and having sufficient money to fund her children's education.