Reference no: EM133496216

Case: Your good friends, Pistol Pete and his wife Petunia found out that you took this class. They now know you are an expert in Personal Finance and would like your advice. They invite you over for dinner to talk about their situation. Pete has been offered an amazing career opportunity. He is considering leaving his job as the Aggie mascot and moving to Miami, Florida to become the next "Billy the Marlin," a Major League Baseball Team Mascot. Petunia is concerned that even though Pete will be making a much bigger salary, they might not be able to afford the move. Their household consists of the two of them plus their kids: Polly, age 15, Parker, age 10, and Penelope, age 5. What advice would you give the family on figuring out if this is a good move, financially speaking?These questions should be answered in paragraph format, as if you were sitting down with your friends and discussing these topics over dinner. Answers should NOT be in the form of direct quotes from your textbook or other sources as you would format a formal research paper.

1. What types of financial planning tools should Pete & Petunia use in their decision-making process? Hint - think about the types of assignments we have done in this class and the tools you have used to research and reach conclusions.
2. How would they go about deciding whether or not they should rent or go ahead and buy a house? If they buy a house, what additional costs of homeownership might there be in Miami versus Las Cruces? (hint - don't forget about Homeowner's Insurance)
3. Pete is worried that his 1957 Chevy might not make the 2,000-mile trip. What can you tell him about buying a different vehicle?
4. If Pete's getting a big raise, does that mean they'll have more money to spend? What about taxes? (Federal and State Income Tax, Social Security, Medicare, Real Estate Taxes) Don't forget about the differences in the cost of living between Miami and Las Cruces!
5. What kind of employee benefits might Pete be eligible for as an employee of the Marlins?
6. What about Pete's NMSU retirement savings? Should he do something with that money? Should he sign up for the 401K the Marlins are offering? What types of investments might he consider? (Pete has 30 years left to work before retirement)
7. What advice would you give Pete and Petunia about Estate Planning? Remember - they have 3 minor children!
8. What do you believe is the most important concept we discussed in this class, and how will you use the knowledge you've obtained to improve your financial future? (No wrong answers!)