$**$Expert needs experience with eMoney$**$

$$

Mainly need to know where to put the information on the picture on eMoney.

Mike Mitchell's Email to John Burke$$

January $11,20$X$2$

Dear John and Mary:$$

I am sending you our complete case file of internal and external data collected along with:$$

Income Statement for the year $20$X$2$

Statement of Financial Position as of $1/01/20$X$2$

Pie chart of your current Income Statement along with a benchmark pie chart$$

Pie chart of your current Statement of Financial Position along with a benchmark pie chart$$

Please review these for accuracy and we can discuss them at our next meeting on the $18$th$.$

Regards,$$

Mike Mitchell, CFP$$

Partner$$

Mitchell and Mitchell$$

$850-555-9876$

$$

$$

PERSONAL BACKGROUND AND INFORMATION COLLECTED$$

The Family$$

John Burke, age $30,$ is an assistant manager in the marketing department of Florida Gas. His annual salary is $$36,000.$ His wife, Mary, is an administrative assistant with an accounting firm. Mary is also $30$ years old and has an annual salary of $$26,000.$

John and Mary have been married for three years and have no children from their marriage. They hope to have two to three children in the next five years. However, John has one child, Patrick $($age $4),$ from a former marriage. Patrick lives with his mother, Kathy, out of state and as a result, John has not seen Patrick for three years.$$

John pays $$350$ per month in child support to Kathy for Patrick until he reaches age $18.$ John also pays for a term life insurance policy on himself for Kathy $($beneficiary$)$ as a result of the divorce. The contingent beneficiary on the policy is Patrick. Patrick's education is fully funded by a $529$ Plan established by Kathy's father.$$

$$

EXTERNAL INFORMATION$$

Economic Information$$

$$ Inflation is expected to be $3\mathrm{.}0\%$ annually.$$

The Burkes' salaries should increase $4\mathrm{.}0\%$ for the next five to ten years.$$

There is no state income tax.$$

It is expected that there will be a slow growth economy; stocks are expected to return an average of $9\mathrm{.}0\%$ annually$$

$.$

Bank Lending Rates$$

$15-$year mortgage rate is $5\mathrm{.}0\%.$

$30-$year mortgage rate is $5\mathrm{.}5\%.$

Secured personal loan rate is $8\mathrm{.}0\%.$

Credit card rates are $18\%.$

Prime rate is $3\mathrm{.}0\%.$

Expected Investment Returns$$

$$ Their expected rate of return is $8\mathrm{.}5\%.$

$$

Return$$

Standard$$

Deviation$$

Cash and Money Market Fund$$

$2\mathrm{.}5\%$

$2\mathrm{.}5\%$

Guaranteed Income Fund$$

$2\mathrm{.}5\%$

$2\mathrm{.}5\%$

Treasury Bonds$/$ Bond Funds$$

$4\mathrm{.}0\%$

$4\mathrm{.}0\%$

Corporate Bonds$/$ Bond Funds$$

$6\mathrm{.}0\%$

$5\mathrm{.}0\%$

Municipal Bonds$/$ Bond Funds$$

$5\mathrm{.}0\%$

$4\mathrm{.}0\%$

International Bond Funds$$

$7\mathrm{.}0\%$

$6\mathrm{.}0\%$

Index Fund$$

$9\mathrm{.}0\%$

$14\mathrm{.}0\%$

Large Cap Funds$/$Stocks$$

$10\mathrm{.}0\%$

$16\mathrm{.}0\%$

Mid$/$Small Funds$/$Stocks$$

$12\mathrm{.}0\%$

$18\mathrm{.}0\%$

International Stock Funds$$

$13\mathrm{.}0\%$

$22\mathrm{.}0\%$

Real Estate Funds$$

$8\mathrm{.}0\%$

$12\mathrm{.}0\%$

$$

Insurance Information$$

Life Insurance$$

$$

$$

Policy A$*$

Policy B$$

Policy C$$

Insured$$

John$$

John$$

Mary$$

Face Amount$$

$$500,000$

$$50,000$

$$26,000$

$$

Term$$

Group Term$$

Group Term$$

Cash Value$$

$$0$

$$0$

$$0$

Annual Premium$$

$$600$

$$178$

$$50$

Who pays premium$$

John$$

Employer$$

Employer$$

Beneficiary$$

Kathy then Patrick$$

Kathy$$

John$$

Policy Owner$$

Kathy$$

John$$

Mary$$

Settlement options clause selected$$

None$$

None$$

None$$

$*$ John is required, as a result of the divorce, to maintain a term life insurance policy $($Policy A$)$ of $5500,000.$

The premiums are $$50$ per month.$$

Health Insurance$$

John and Mary are both covered under John's employer health plan. The policy is an indemnity plan with a $$300$ deductible per person per year and an $80/20$ major medical coinsurance clause with a family annual stop loss of $$2,000.$ Patrick's health insurance is provided by his mother.$$

Long$-$Term Disability Insurance$$

$$John is covered by an "own occupation" policy with premiums paid by his employer. The benefits equal $60$ percent of his gross pay after an elimination period of $90$ days. The policy covers both sickness and accidents and is guaranteed renewable. The term of benefits is to age $66.$

$$Mary is not covered by disability insurance.$$

Long$-$Term Care Insurance$$

$$ Neither John nor Mary have long$-$term care insurance.$$

Renters Insurance$$

$$The Burkes have an HO$4$ renters policy $($a Contents Broad Form policy that covers contents and liability$)$ without endorsements. The annual premium is $$600.$

$$Content coverage is $$25,000$ and liability coverage is $$100,000.$

Automobile Insurance$$

$$ Both their car and truck are covered.$$

$$

They do not have any separate insurance on John's motor scooter.

Personal Liability Insurance

Neither John nor Mary have PLUP coverage.

Investment Information

John owns $1,000$ shares of Crossroads Inc. stock that was inherited by him. Its current value is $$8,000$

and it pays a dividend of $34$ cents per share for a total of $$340$ per year, which is not included in the

income statement because it is reinvested. John also owns $100$ shares of Gladwell, Inc. stock that was

received by him as a gift. The adjusted taxable basis is $$4,000$ and the fair market value is $$4,000.$ Both

the Gladwell and Crossroads stocks are large cap stocks.

Five years ago, John invested in a balanced mutual fund that was initially started with $$8,000$ he

received as a gift. He has reinvested all dividends and capital gains each year. The g