Advanced Estate Planning. Business & Marketing. Case Study

ADVANCED ESTATE PLANNING
Student Name
Course
Professor’s Name
Date
Advanced Estate Planning
Executive Summary
After reviewing the financial plan, it is evident that Tyler and Mia Bedo submit their file return as joint and married couples. Both clients are 42 and intend to retire at 62 years. The couple has a child, Becky Bedo, who is five years old. From the case study, it is evident that the assumptions emanate from calculations related to tax liability. Some of the premises include an average inflation percentage of 3 percent, the weighted average rate of return of $5454.89, a marginal tax bracket of 25 percent, and an education inflation rate of 5 percent.
The Bedos aim to seek protection against life, disability, property and casualty, long-term care, accumulation of enough assets at the retirement age, providing support to their daughter in her education in the future, and reducing the tax burden. Conversely, the couple anticipates retiring early and handover their assets to Becky when they die. Seeking protection against life, disability, property & casualty, long-term care, and providing support to Becky is the couple’s main priority in their list of needs. The couple’s early retirement desire seems to be more vital than transferring or handing over their assets to Becky when they die.
In this advanced retirement plan, there are various recommendations laid out in the paper to ensure the couple’s needs and desires. The successful implementation of the proposal will increase the cash flows of the Bedos in the current and retirement period. Besides, implementing these recommendations will increase the cash flow for the Bedos by $560 annually, leading to a total of $96,000 at the end of the retirement period. Reviewing the net worth, income, and discretionary funds of customers is one of the ideal ways of evaluating the current financial situation and status of the Bedos.
Client’s Current Situation
A high net income (total taxable and non-taxable incomes), net worth (total asset-total liabilities), the high discretionary fund represents a customer’s better financial situation.
Tyler and Mia Bedo’s income and expense statement per their total income is $106821 and $32496, respectively. The couple’s primary income stems from their salary income. For example, the couple has joint investments, which yield ordinary income dividends and interest expenses of $3,525 and $600, respectively. Conversely, the balance sheet shows the couple’s current net worth as $903,194, family’s total assets as $1,049,850, and unlimited liability was $146,656. The figures illustrate that the family has a positive net worth and a solid financial standing. In the discretionary funds’ category, the total dedicated family’s expense is $44,172, while the Bedos family income is $139,317.
Protection Needs
Identification of client’s life insurance policies
Tyler and Mia Bedo are beneficiaries of the life policy and the employer’s group term policy. From the balance sheet, it is evident that $834,717 is the total figure required to cover the client together with the assets...