Does mabel have an adequate emergency fund

Assignment Help Financial Management

Reference no: EM131489315

WEALTH GROUNDING - FOUNDATIONAL PART You had lunch with Mabel, a receptionist. Mabel noticed that the term “emergency fund” is frequently mentioned in various articles in the local newspapers. Mabel mentioned that her monthly expenses total about $1,750 per monthly and she has the following: Saving Account Balance (Mabel) $6,000 Fixed Deposit Account (Mabel) $3,500

WEALTH PROTECTION – INSURANCE PLANNING Mabel shared the following information with you: Her husband, Boon Teck, is 37 years old and they have a daughter Katherine, 12 years old. Boon Teck wants to provide for the family for the next 10 years until Katherine is 22 years old and has completed her university education. He estimates that the income needed for the family is $70,000 and Katherine’s university education is $42,000. He also wants to provide $180,000 as retirement income for Mabel and he estimates that the family will need a miscellaneous amount of $25,000 per annum. Boon Teck has savings of $35,000 and shares worth $78,000. His assets also include an existing life insurance policy of $50,000.

WEALTH ACCUMULATION – INVESTMENT PLANNING Boon Teck and Mabel wish to upgrade to a condominium apartment in 2 years’ time. They think that if they can obtain a 25 year loan, they can afford to make maximum monthly payments of $2,000 per month (cash and CPF amount). Assume that Boon Teck and Mabel have accumulated the necessary 20% down payment and have also found a bank that is willing to offer them a 4% fixed rate 25-year loan. Boon Teck purchased an antique chair for $12,000. Today, his chair sold for $33,752. Boon Teck estimated that he had the antique chair for 12 years.

WEALTH ACCUMULATION – RETIREMENT PLANNING Boon Teck is planning for his retirement in 30 years’ time. He is deciding whether to invest more in growth investments, conservative investments, or growth and income investments

Question: Does Mabel have an adequate emergency fund?

Question: Suggest FOUR (4) ways for Mabel to obtain emergency funds in a short amount of time if she is caught in an emergency situation.

Question: Compared with Boon Teck’s 47 year-old colleague, what advice can you give Boon Teck?

Reference no: EM131489315

Questions Cloud

Estimate the current cost of capital for rad : You have estimated the optimal debt to capital ratio for RAD, based upon minimizing the cost of capital, to be 50%.

What might prevent you from increasing the quantity supplied : Elasticity of Supply If you were a producer, what might prevent you from increasing the quantity supplied in response to an increase in price?

What will be loss or profit for this proposes service : What will be loss or profit for this proposes service If the airline plans to sell tickets at $600 each?

Compute the net present value of the machine : No salvage value is expected at the end of the asset's life. Mayberry's cost of capital is 14 percent. Compute the net present value of the machine.

Does mabel have an adequate emergency fund : RETIREMENT PLANNING Boon Teck is planning for his retirement in 30 years’ time. Does Mabel have an adequate emergency fund?

Reported cases of preventable childhood diseases : The commissioner of health is concerned about the increasing number of reported cases of preventable childhood diseases, such as polio and rubella.

Smoking cessation counselling program : According to their estimates the cost effectiveness of a smoking cessation counselling program is $5,050 per QALY. Should per the program be implemented?

How much could the firm afford to pay for the project : How much could the firm afford to pay for the project and still decide to go forward? Assume the cash flows are as shown for years 1-6.

Develop a future state of the organization : CIS8004-Assignment 2. In this professional business report, you must at least cover the following points adequately: Develop a future state of the organization

User Account

All Pages