Gary Stewart and his wife Debbie, both age 32, have been married for twelve years and have
Question:
Gary Stewart and his wife Debbie, both age 32, have been married for twelve years and have a 2- year old son, Grant. Gary is a mid-level manager at a Fortune 500 company and currently earns $85,000 per year. Debbie is a teacher and is paid $35,000 per year. They own their own home and are making the monthly mortgage and property tax payments. They also have 3 vehicles, a 2018 Corvette, a 2015 Lexus SUV and a 2015 BMW 5 series. Gary, Debbie and grant are covered under Gary’s Health Insurance plan at the Fortune 500 Company. Gary has $1,100 withdrawn from his pay check each month for his coverage. The company pays $2,900 of his health insurance for each month for the gold plan as a non-taxable fringe benefit.
You have prepared the Stewarts’ tax return for the past five years. When you delivered the latest return, Gary asked your advice concerning insurance. Keep in mind that Gary is very savvy at statistics, and analyzing business transactions.
Gary and Debbie do not have a formal insurance plan. To date, they have simply tried to save whenever possible. Their questions for you arose after and insurance agent tried to sell them a single- premium deferred annuity. However, after talking to you, they realize that they need to develop a formal insurance plan. Put together an insurance plan for the Stewarts.
They would like to hear your opinion and thoughts about their financial situation.
Expert Answer:
Since Both Gary Stewart and His wife are young age person So here are the follow... View the full answer
