1. Based on M&M financial positions, what are the things M&M should be considering?
2. What is M&M's major goals?
3. Evaluate M&M goals with respect to how specific, measurable, action-oriented, realistic and time bound they are. Are these a short term or long-term goals?
4. What additional goals would you recommend to M&M for short and long term?
5. Prepare M&M financial statement. Including a personal cash flow statement and a personal balance sheet. Based on these statements, can you make specific recommendations to M&M about what they need to do to achieve their goals of paying off credit card balance and saving for their retirement.
6. Calculate M&M's current ratio, liquidity ratio, debt-to-assets ratio, and savings ratio. What do these ratios tell you about how their is managing his financial resources?
7. Consider M&M's goal to retire in 30 years by saving $3,500 per year starting five years from now.
   1. Based on your analysis of M&M's cash flow and your recommendations, is saving $3,500 per year a realistic goal? If not, what other goal would you advise?
   2. In order for M&M to know what the $3,500 per year will accumulate to in 30 years, what additional assumption (or piece of information) must he make (or have)?
   3. Assuming that M&M invests $3,500 per year for 25 years, achieves an annual return of 9 percent, compounded monthly, how much will he accumulate in 25 years?
       
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In this assignment, you are the financial advisor to Matthew and Martha (the M&M family). Matthew and Martha (M&M) seek you out to help them take control of their finances better. During your initial meeting you took some notes to help you provide some direction and support your answers to the questions they asked. You can find these below in the notes section. A list of their questions for you to answer is also provided below in the "questions" section. Notes: Matthew and Martha (M&M) are 30 Years old and have two children Max and Mary who is 4 and 2 years old. Matthew is working for a tech. company. Martha is currently not working. After tax CCP / EI and taxes, Matthew brings home monthly income of $3,350 as disposable income. Because Matthew is the only sole income, his Salary is just enough to cover basic Expenses. Matthew and Martha would prefer to take control of their finances. To help their financial situation, Martha decided to work in a day care to look after her two young children and make some income to help Matthew. Her current part time job generates $12,000 per year. This means $950 / month after deducting EI/CPP. There is no tax since Martha earn below the personal tax deduction limit to be subject to any tax. Matthew has a credit card balance of $3,000. M&M will need another car beside their own used car. M&M might need to save $500 each month until they accumulate $3000.00 to use as a down payment to another good condition used car. Speaking to Matthew, he indicated he wishes to retire at the age of 60 and he is wondering if he can save $3500 per year starting five years from now, will have enough funds for retirement. Because they are living in their own house inherited from their parents, the mortgage payment of their house is $1,200.00 (at 4.25% interest rate). The current house value is $600,000 and only $200,000 is left in the mortgage. Since the focus on their future planning. M&M decided to save $300 / month towered their children's education. Taking to the bank advisor, the bank promised fixed interest rate of 5 percent per year compound monthly for the next 13 years until Max (their first child) goes to university. They also wonder what the accumulated saving will be if they choose to save $350 instead of $300 per month. As part of M&M financial goals, they need to create a budget to capture their monthly income and expenses. By looking at the Bank statement and Credit Card statement, M&M summarized the following for you to help them out: In this assignment, you are the financial advisor to Matthew and Martha (the M&M family). Matthew and Martha (M&M) seek you out to help them take control of their finances better. During your initial meeting you took some notes to help you provide some direction and support your answers to the questions they asked. You can find these below in the notes section. A list of their questions for you to answer is also provided below in the "questions" section. Notes: Matthew and Martha (M&M) are 30 Years old and have two children Max and Mary who is 4 and 2 years old. Matthew is working for a tech. company. Martha is currently not working. After tax CCP / EI and taxes, Matthew brings home monthly income of $3,350 as disposable income. Because Matthew is the only sole income, his Salary is just enough to cover basic Expenses. Matthew and Martha would prefer to take control of their finances. To help their financial situation, Martha decided to work in a day care to look after her two young children and make some income to help Matthew. Her current part time job generates $12,000 per year. This means $950 / month after deducting EI/CPP. There is no tax since Martha earn below the personal tax deduction limit to be subject to any tax. Matthew has a credit card balance of $3,000. M&M will need another car beside their own used car. M&M might need to save $500 each month until they accumulate $3000.00 to use as a down payment to another good condition used car. Speaking to Matthew, he indicated he wishes to retire at the age of 60 and he is wondering if he can save $3500 per year starting five years from now, will have enough funds for retirement. Because they are living in their own house inherited from their parents, the mortgage payment of their house is $1,200.00 (at 4.25% interest rate). The current house value is $600,000 and only $200,000 is left in the mortgage. Since the focus on their future planning. M&M decided to save $300 / month towered their children's education. Taking to the bank advisor, the bank promised fixed interest rate of 5 percent per year compound monthly for the next 13 years until Max (their first child) goes to university. They also wonder what the accumulated saving will be if they choose to save $350 instead of $300 per month. As part of M&M financial goals, they need to create a budget to capture their monthly income and expenses. By looking at the Bank statement and Credit Card statement, M&M summarized the following for you to help them out: