Client Name: Nick Diamond$1.$ Address: $3160$ Easy StreetRancho Santa Fe$,$ CA$1.$ Telephone: Home: $(619)334-7543$Office: None$2.$ Marital Status: Married$3.$ Ages: Client: $43$Spouse or partner: $454.$ Dependents: Number:$2$Ages;$16$ &$185.$ Employer$/$occupation: Client: Music teacher$/$selfSpouse: Homemaker$1.$ Approximate annual income: Client:Earned: $ $14,000$Passive: $ $80,000$Spouse:Earned: $ $0$Passive: $ $01.$ Approximate personal balance sheet:Nick DiamondBalance SheetDecember, $2000$Cash$$20,000$Personal residence$950,000$Investments$2,200,000$Total Assets$$3,170,000$Liabilities$$250,000$Net Worth $2\mathrm{.}920,000$Total Liabilities and Net Worth$3,170,0001.$ Specific matters of concern to the client:General planning issuesJust inherited most of assets from deceased aunt, practically bankrupt until inheritance. Has no financial plan in place and never thought about it$.$Recordkeeping and personal financial statementsHas never put together a financial statement and wouldnt understand one if there was.InsuranceBasic insurance for cars and house in place, but no life insurance.Borrowing and creditVirtually all debts were paid off except mortgage on recently purchased house and previous mortgage on old house in bad part of townInvestmentsTwo houses and a well$-$diversified stock and bond portfolio professionally managed by a trust companyTax PlanningFirst year working with the inherited assets, plenty of opportunity for improvement.Retirement PlanningNone.Estate planningNone.General observationsPreliminary work on their budget indicates they like their new life style too well and are spending beyond their means. Their current household spending is $$170,000/$year but the portfolio and earnings only generate $$94,000/$year$.$ Portions of the investment portfolio are periodically liquidated to make up the difference. They also have an avocado orchard on the property that brings in $$1,000/$year but incurs expenses of $$2,400/$year$.$ The client has a laid back, innocent personality responsive to advice$\mathrm{.}1.$ Clearly identify and summarize the client's goals and objectives$2.$ Analyze the areas where changes in financial strategy need be made$3.$ Offer solutions and explain how they would be effectiveThe areas to be covered are broad planning strategies, financial statements and insurance. The objective of the planner's early activities is to begin a discussion of broad financial concepts with the client based on information gathered from an initial meeting.$$