Robert currently has $500 in his checking account and a savings account with $1,500 in it. He saved this money over two years ago and had kept it in a savings account ever since. SAVINGS: He plans to save $50 every month from his disposable income ("take home) to put away for an emergency and an additional $25 per month for a mutual fund retirement investment. His $25 investment will be a Roth IRA (amount put in is taxed & growth is tax exempt). Robert is saving $25 per month in a 10% return mutual fund. Go to www.crown.org, click on "Resources" and then "Personal Finance" and then "Calculators", and then "Monthly Deposit Savings Calculator" and calculate what this will grow to if he were to continue his investment for 50 years if it compounded annually. $_ Robert is also investing $246 a month thru his employer ($123 for his contribution, and an additional $123 paid by his employer At 12% return, what will the investment be worth after 30 years if it compounded annually? $_ How much if he did this for 40 years? $_ ASSIGNMENT: 1) Using the amounts of the above case, fill in the monthly budget and balance sheet for Robert and answer the following questions: a) Is Robert insolvent? Why or why not? b) Compare how Robert plans to spend his money to the 6 Biblical purposes of money - how is he doing? Robert's Balance Sheet as of NOW (round up to whole dollars) ASSETS Liabilities TangibleAssets Student Loan Balance(s) $40,000 Misc personal Items $400 Auto Loan Balance(S) $5,550 Market Value of Real Estate $0 Credit Card Balance(s) $1,415 Market Value of Auto(s) $6,000 Medical Bills Mortgage Balance Monetary Assets Checking Account Balance(s) $500 Subtotal $46,915 Savings Account Balance(s) $1,500 Investment Assets Retirement Fund $25 Net Worth (Equity) $38,415 Other Mutual Fund / Stock -0 Emergency Fund $50 Total Assets $8,475 Robert's Monthly Budget Sheet (round to nearest whole dollar) Less pre-tax Insurance "Necessities"