Although contributions the plan may vary from year year

The learning objectives for this assignment are as follows:

Retirement

their retirement goals.

Adding Assumptions to Case Information

• laws (tax, estate, and other) that will be in effect at key points in the future;

• future employment and salaries of their clients; and

You must use the following standard assumptions:

You may choose to analyze and evaluate a particular point based upon either of several different assumptions, or upon a range of assumptions. For example, you may

You are permitted to use “canned” personal financial planning, retirement, and investment planning software only to generate quantitative data for your PFPL560 assignments, particularly the final paper. Use of such software qualifies for the computer applications requirement of the assignments. If such software is used, you must include an explanation of the functions employed by the software and interpret, rather than merely state, the results. You must demonstrate that you understand the “black box” of the software.

However, preprogrammed written planning recommendations generated by such “canned” software are not permitted in the assignments. Using the preprogrammed planning recommendations constitutes plagiarism unless the written portions of the plan are in your own words. Where such software has multiple options for sentences and/or paragraphs, your selection of one preprogrammed paragraph over another does not constitute “your own words.” If you have any questions about the authorized use of software packages, contact your lead faculty advisor.

Distinguishing between:

The Resources Spectrum

You will be expected to support recommendations in many of your assignments in this course by researching and referencing peer-reviewed (refereed) journal articles for appropriate tax references. Simply referencing peer-reviewed journal articles or tax references without explaining how they specifically support your recommendations does not demonstrate your understanding of the materials and their appropriate application to your
recommendations.

Hypothetical Case Study: Paul and Christine Kelly

Case Study Narrative Your clients, Paul and Christine Kelly, have come to you for help in developing a comprehensive and coordinated financial plan.

Christine had taken care of the books but started working full time 45 days ago as an office manager at Acme, Inc., a company with over 100 employees. The salary in her new position is $41,700. Benefits provided at Acme are described at the end of this information. Paul and Christine had an individual major medical plan, but let it lapse when they became eligible for and enrolled Paul, Christine, Peggy, and Ron in the group coverage provided by Acme. With Christine’s new job, Christine has worked with Peggy so that she can take over what Christine has been doing.

Both Paul and Christine have worked since graduating from college to the extent that they are both fully insured under Social Security. Christine took some time off from working when Peggy and Ron were born. Paul and Christine have been married for 28 years and have one son and a daughter.

Financial Planning Goals of Paul and Christine Kelly
The Kellys do not want to retire until after Paul qualifies for the full Social Security benefit, and perhaps until he attains age 70 or Christine qualifies for the full Social Security benefit. They have specific questions about this goal:

1 All assets are held JTWROS except where otherwise shown
2 Invested last month @ 1.65% for one year
3 Devised solely to Christine by her mother in 1989; placed in JTWROS with Paul on 25th anniversary; basis = $62,000 4 Fully deductible contributions; Paul is beneficiary
5 Rollover from packing plant; fully deductible contributions; Christine is beneficiary
6 Basis = $165,000; replacement cost = $353,000
7 Residence; 30 years @ 9.0%; 11 years remaining
8 Consolidated; 6 years @ 8.5%
9 18.6% APR
10 Second mortgage; 8 years @12%; used for Peggy’s college; 7 years remaining

end flow-through of income from the S corporation

2 Not assumed for retirement fund as may be needed for Claire’s care

Benefits Provided at Acme, Inc.

Plan documents at Acme, Inc. indicate the following:

You will be covered under ACME’s group term life insurance plan for twice your annual salary, without direct cost to you. If the amount of your insurance exceeds $50,000, then an additional amount will be added to your taxable income, as required by law.

You will be covered under Acme’s group long-term disability plan for 60% of your

All investments are made by the plan’s investment committee.

Your benefits are vested at the rate of

(For additional information, request the Summary Plan Description from the designated Benefits Coordinator.)

Benefit Percentage

Participants can self-refer to OB/GYN
Participants can self-refer to network specialists

Outpatient laboratory services

90% covered; If performed as part of a physician office visit and billed by physician, then covered at applicable PCP or Specialist office visit cost sharing

Preventive Care

Fertility services Member cost sharing based on type of service performed and place of service where

rendered; Advanced Reproductive Technology (ART) is limited to $2,000 annually

cause which are separated by less than 10 days

Medical Therapy

copay, limited to 60 visits annually for speech therapy, physical therapy and occupational therapy combined

Noncustodial home health care 90% covered; 60 visits per year

Prescribed care in noncustodial skilled 90% covered; 60 visits per year
nursing facility

dental in nature including treatment of fractures and removal of impacted teeth)

Putnam Stable Value
Index Fund
BlackRock US Debt Index Fund (Bond Index)
BlackRock Equity Index Fund
BlackRock Mid-Cap Equity Index Fund (Mid Cap Index)
Bond
BlackRock Impact Bond Institutional (BIIIX)
PIMCO Income Institutional (PIMIX)
Large Cap
JP Morgan Equity Income (OIEIX)
RidgeWorth Large Cap Stock Fund (STCAX)
Vanguard FTSE Social Index (VFTSX)
Small Cap
JP Morgan Small Cap Core (VSSCX)
Invesco Small Cap Growth Y (GTSYX)
International
American Funds EuroPac Gr R5 (RERFX)
Oakmark International Value Fund (OAKIX)
Emerging Markets
Oppenheimer Developing Markets Y (ODVYX)
Real Estate
Cohen & Steers Realty Shares* (CSRSX)

Target Funds
American Century One Choice Income Retirement Institutional Fund (ATTIX)
American Century One Choice (Target—2025) ARWFX 47/53
American Century One Choice (Target—2030) ARCSX 51/49
American Century One Choice (Target—2035) ARLIX 57/43
American Century One Choice (Target—2040) ARDSX 63/37
American Century One Choice (Target—2045) AOOIX 69/31
American Century One Choice (Target—2050) ARFSX 74/26
American Century One Choice (Target—2055) AREVX 76/24
Investing in a Money Market Fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the net asset value at $1.00 per share, it is possible to lose money investing in this fund.

Losses are more likely when investing for a short period. Investments are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other activity.