this assignment requires attention to detail. Go through the case narrative carefully and identify each bit of information that points to a financial issue, problem or a question laticia and kwame may be facing list as many as you see.

3 intense and expensive training, became licensed to practice medicine as a heart surgeon. With that came an 4 overnight increase in his income from $62,000 to $475,000 a year. Kwame is admittedly not used to his new 5 financial standing. How successhul his life was turning out still feels unreal to him, a son of immigrants from 6 Ghana and Nigeria. As with most young doctors, his professional training dominated his life for years, leaving 7 him little time or energy to take stock of where he was and where he was going financlally. He readily admits 8 that he does not know much about how to manage his money. 9 Kwame's wife Latida is a blessing in his bfe. Ever since they met at a medical conference 3 years ago and fell in 10 love, she always grounded him and gave him a clear sense of direction. At 31 years oid, Laticia has an exciting 11 and demanding career of her own. She is a molecular biologist with Pfiver, a pharmaceutical company, making 12$113,500 a year. They are in a loving and committed relationship and look at all their finances as joint money. 13 Family Planning 14 Recently, Laticia felt an increasing desire to start a family. After some discussion and contemplation, the 15 Adeyemis decided to try to conceive, although necther of them is clear on what having a child would mean for 16 them financially, and what level of disruption their careers might see. 17 A week ago, Laticia found out she was pregnant. With their busy careers, and now with a child on the way. 18 Kwame and Laticia realued they needed financial advice. They came to your financial planning practice for help 19 sorting out where they stand financially, where they should be going and how to get there. 20 Uquid Assets 21 Kwame has $5,000 in his checking and $67,200 in 22 a bank money market account yielding 0.5 per 23 vear. Laticla has $4,300 in her checking account. 24 Home and Mortgage 25 Laticia came into the relationship owning a co-op 26 apartment, where they both currently live. They love it, There's enough space, even after the baby arrives. in 27 about 7 years, when ir's time for their future kid to go to school, they think they might want to move to a 28 quieter neighborhood, perhaps even out to the suburbs. Theyll worry about that when the time comes. 29 The market price of the apartment is estimated at $882,000, taticia initialy borrowed $650,000 to buy it; she 30 currently owes $393,000 on the mortgage. it's a 30 -vear fixed rate mortgage; the monthly payment (principal 31 and interest) is $2,973. 32. Laticia does not remember what the interest rate is, but they both agree they want to pay off that mortgage as 33 soon as they can, feeling that owning real estate outright is the surest way to financial security. Kwame and 34 Laticia have been diligent trying to pay more than they have to, and they plan to keep doing that. 35 Their monthly apartment maintenance is $700. Real estate taxes and homeowner's insurance premiums are 36 S800 a month altogether. 37. Income taxes 38 Being high eamers, the Adeyemis' tanes are also high. Their federal income taxes are estimated at $130,000 a 39 year, and the New York's income tax total is expected to be $46,000 a year. 40 Other expenses 41 Laticia and Kwame barely buy any groceries, maybe $200 worth a month. They mostly eat out, and typically 42 spend anywhere from $650 to $1,000 a month. Their utility bills are $300 on average. Clothing expenses are 43$250, transportation is $480, entertainment is $00, and other miscellaneous expenser are $1,000 a month. 44 Despite their busy schedules, they try to go on one annual vacation together, typically spending $4,000 in total. 45 Student Loans 46 Kwame just consolidated his student loans at 6.25X interest rate for 10 years. His monthly payment is $3,009. 47 Laticia's current student loan balance is $63,000. Her monthly payment is $1,008, and the interest rate is 3.9%. 48 Employee Benefits 49 Kwame works at South Brooklyn Health (formerly Coney istand Hospital), part of NrC Health + Hospitals 50 Corporation, Lke most large employers, it offers its employtes subsidized health insurance coverage. Kwame's 51 share of premiums to cover his family is $400 a month. He also signed up for disability income insurance through $2 work, where his premium is $294 per weekly paycheck. 53 Investments and Retirement Planning 54 NYC Health + Hospirals employees can participate in the New York City Deferred Compensation Plan (NYC OCP). 55 The pian has both a 4019k) and a 457 compenents, both of which Kwame tan max out every year, if he wanted 56 to. Kwame heard from colleagues that the 457 plan is better (he does not know whyl, so he set up his 57 Contributions recently to max it out every vear, Mis current balance in the plan is $13,000, and he has been 58 contributing to the Traditional option only. He also has a Roth tra he established prior to his current 59 employment, where the current balance is $37,000. 60 Laticia has been contributing $4,000 a year to her Mrver's Roth 401(k) account lately, and has accumulated 61552,000 in it. Plizer provides a senerous dollar-for-dollar match of employee contributions up to 4.5% of their 62 compensation, This matching contribution goes into the Traditional type of account; her current balance there is 63$14,400 64 Kwame and taticia are somewhat more conservative investors than most others their age. They understand they 65 need significant equity exposure in order to achieve a better long term return, but they get nervous when their 66 investments go down in value. 67 The Adeyemis plan to retire and start recelving their Social Security benefits at the same time, when Kwame is 6. 67 and Laticia is 62 years old. Their monthly Social Security retirement benefits at those ages in today's doflars 69 are estimated to be $3,200 for Kwame and $2,000 for Lavia. They think their retirement expenses in today's 70 dollars wil be 70% of their total cash outfiows now. Other than Social Security, they will rely on their retirement 71 accounts in order to meet their retirement expenses, They want to assume they will die in the same vear, when 72 Kwame is 95 and Laticia is 90 years oll