Question

With two children In college Life Situation Financlal Data the Brocks once again find their life situation changing. Pam, 48 Monthly income $6,700 Compared to five years ago, Josh, 50 Living expenses their total assets have $5,600 3 Children, ages 21, 19 and 16 declined due to college Assets $242,500 expenses. The Brocks' oldest Liabilities $69,100 child will graduate next year, but the youngest will enter college in a couple of years. The drain on the family's finances will continue. While the family's finances are adequate, both Pam and Josh are beginning to think more about retirement. Over the years, Josh has taken advantage of different career opportunities. Today his annual salary is higher than ever. However, his employment changes have resulted in a smaller pension fund than would have been available had he remained with the same organization. The current value of his pension plan is just over $115,000. The investment program Pam and he started almost 10 years ago is growing and is now worth about $62,000. But they still worry whether they will have enough money to finance their retirement when Josh retires in 15 years and Josh should also be concerned with various estate planning actions. They have Pam talked about a will and investigated the benefits of several types of trusts. However,. they have not taken any specific actions. Questions 1. Q1. What steps do the Brocks need to take to prepare for retirement? 2. Q2. Since Pam is 48 and Josh is 50. what should be their major priorilies as they continue planning for retirement? 3 Q3. What lypes of estate plarining activitics and decisions that might be considered by the Brocks his time? 04. What are some inportant dccisions thev recd to make rcaarciae their estate 4 planning?

Answer 1

1. Josh will retire in next 15 years, actions with respect to non commuted pension for a regular income and tax free investment options should be his action plans. Considering, 8 years of college fee still to be paid which will drain away his wealth for retirement, investment from current salary for funds can be done at earliest.

2. Savings out of the current salaries and more propoer allocation of current investments to get higher returns. Furthermore, college loan can also be taken which are available at cheaper rates to avoid drastic decrease in wealth.

3. Investment in real estate can be considered .Ventures into REITS privide good return with tax benefits.

4. Info not available