I will pay for the following essay Financial planning for the Smith family. The essay is to be 5 pages with three to five sources, with in-text citations and a reference page.Download file to see prev

I will pay for the following essay Financial planning for the Smith family. The essay is to be 5 pages with three to five sources, with in-text citations and a reference page.

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The author has presented that the Smith family has got a very tricky situation and their financial goals are a bit unrealistic. This is because the family wants to set aside $350 per month for their children’s college education. This from my point of view is quite high because it will amount to$ 4,200 annually. Amber’s goals on the other side are still not realistic. This is because she says she wants them to save $100,000 on their children’s school fees. This is very unrealistic because at the moment, their salary per year cannot even add up to $100,000 per year. The family has not put down in calculation the amount of money that they require for their kids’ education when they get to college. Luke for example, they have no idea how much they will pay for his college education hence they cannot plan for the future goals and how much exactly they require. Amber is thinking of overtime work so that she gets extra money for luxury items. They have made plans for a vacation, a new home theatre system, some new custom furniture and a different car for Joel. They want to apply for a new credit card with a limit of $50,000. The family has got so many plans for the extra money that they have and have forgotten the most basic things like their children’s future education and they want to pump so much money into their luxury life. They want to buy a new car which according to me is not that necessary at the moment simply because the car that they have can be easily repaired and used as they continue to save (Fedorowicz, 1977).. The Smith family has got a mortgage house and their balance on the mortgage is $131,000. They purchased the house 5 years ago by paying a deposit of $200,000. Borrowing $140,000 and used $60,000 that Joel received from his late grandfather. The following information shows the family’s financial information. This will help or act as a guide to preparing a good balance sheet and a financial statement. Electricity, water, sanitary services, and garbage pickup $225 Natural gas $125 Mortgage payment $877 Home insurance $150 Home security $55 Groceries $750 Telephone, long distance calls and home Internet $90 Cell phones/Smartphones $140 Car loan payments $520 Car gas, maintenance, and insurance $430 Clothing $200 School programs and dues $150 Children’s programs $850 Restaurants $450 Approximate minimum credit card payment $174 Other Church donations $50 $100 Notes: Expenses for the children’s programs include (per month): ? Karate $120 ? Gymnastics $160 ? Piano lessons $225 ? Guitar lessons $125 ? Hockey $220 RRSP contribution room carry-forward for 2012: ? Amber $95,300 ? Joel $25,200 As long as Landon remains under the age of six, the family will qualify for Universal Child Care Benefit payments of $100 per month, which will increase total income. Family assets and liabilities Cash $850 Chequing account 1,300 Current savings 2,200 Home (market value) 300,000 Mortgage 130,924 Home furnishings 5,500 Joel’s car 1,500 Amber’s car 18,000 Car loan 13,500 Credit card balance 5,800 Amber and Smith FAMILY BALANCE SHEET &nbsp. &nbsp. &nbsp. &nbsp. ASSETS &nbsp. &nbsp. &nbsp. THE CURRENT ASSETS &nbsp. Current Assets: &nbsp. Cash in bank &nbsp. Current savings 2,200 &nbsp. 0 &nbsp. Stock, Mutual Funds 0 &nbsp. Pension Plan 0 &nbsp. Life Insurance – surrender value 0 &nbsp. RESP’s 120,500 &nbsp. Other Current Assets 0 &nbsp. TOTAL CURRENT ASSETS $122,700 &nbsp. &nbsp. &nbsp. LONG TERM ASSETS &nbsp. Business property, real estate &nbsp.

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