Martha is 25 and has a very low net worth. Considering the life cycle, her most pressing financial concern is probably: Oasset acquisition planning O liability planning O estate planning insurance planning O tax planning
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Martha is 25 and has a very low net worth. Considering the life cycle, her most pressing financial concern is probably: Oasset acquisition planning O liability planning O estate planning insurance planning O tax planning
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- King Solomon is a rich farmer in Tetebia, a town in the Asou Municipal Assembly. He owns over 100,000 hectares of farmlands. However, he fears the worst might happen and wants to do some investments to secure his future and that of his children. He is contemplating some long-term investments he could undertake to secure his future and that if his children. He is now 50 years old and he plans to retire in 10 years from active farm work. He expects to live for another 25 years after he retires –that is, until age 85. He was advised by a friend that an investment in the financial market will help him plan his retirement well. He has no idea about financial markets and how they operate. You recently graduated from the School of Graduate Studies, University of Professional Studies, Accra and have just reported to work as an investment advisor at the brokerage firm of Cenden Ltd. King Solomon has approached your company for advice. Your boss, after a discussion with King Solomon gathered…1. Which two types of natural disasters are not normally covered in a homeowner’s policy? 6. Kim just paid off her house and is thinking about no longer having homeowners insurance (her bank required it as part of her mortgage agreement). Her house is worth $300,000. What are the pros and cons of this decision? 7. Would your answer to the previous question change if you found out that Kim has $3,000,000 in the bank?Sir please help me sir urgently
- King Solomon is a rich farmer in Tetebia, a town in the Asou Municipal Assembly. He ownsover 100,000 hectares of farmlands. However, he fears the worst might happen and wants to dosome investments to secure his future and that of his children. He is contemplating some longterm investments he could undertake to secure his future and that if his children. He is now 50years old and he plans to retire in 10 years from active farm work. He expects to live for another25 years after he retires –that is, until age 85. He was advised by a friend that an investment inthe financial market will help him plan his retirement well. He has no idea about financialmarkets and how they operate. You recently graduated and have just reported to work as aninvestment advisor at the brokerage firm of Cenden Ltd. King Solomon has approached yourcompany for advice. Your boss after a discussion with King Solomon could gather the followinginformation. King Solomon wants his first retirement payment to have the…Jane has a gross estate estimated at $12 million. Approximately 75% of her estate is attributable to the value of personal property and collectible items. Jane is married but has no children. Her husband does not have a large estate because he spends money freely and foolishly. Since Jane is much older than her husband, she would like for him to benefit from her wealth after her death without giving him control over the principal either while he is alive or at his death. Jane wants as little of her estate assets as possible to go toward payment of estate taxes. She currently has no will but has come to you for advice regarding provisions she should put in a will. Which provision, if placed in her will, would be best to increase the liquidity of her estate and accomplish her other goals? A) Establish a testamentary trust naming her husband as the income beneficiary and trustee B) Establish a power of appointment trust naming her husband as the income beneficiary and a…Clare, age 28, that are financially independent. Robert is married and has one child and Clare is going to get married. Both Robert and Clare are planning to have more children. Adam’s and Liz’s total estate compromises of: They also have the two following mortgages: Mortgage on residential property: £130,000 Buy To Let mortgage: £80,000 Answer the following questions: A) Could you please calculate what is going to be the Inheritance tax liability if Adam dies and transfers all his Estate to his children
- Would you sign this return if you were Tom and Teri’s Paid Tax Preparer? Why or why not? Your clients, Tom (age 48) and Teri (age 45) Trendy, have a son, Tim (age 27). Tim lives in Hawaii, where he studies the effects of various sunscreens on his ability to surf. Last year, Tim was out of money and wanted to move back home and live with Tom and Teri. To prevent this, Tom lent Tim $20,000 with the understanding that he would stay in Hawaii and not come home. Tom had Tim sign a formal note, including a stated interest rate and due date. Tom has a substantial portfolio of stocks and bonds and has generated a significant amount of capital gains in the current year. He concluded that Tim is a deadbeat and the $20,000 note is worthless. Consequently, Tom wants to his son’s bad debt on his and Teri’s current tax return and net it against his other capital gains and losses. Tom is adamant about this!Sarah wants to start his own sports clothing shop. She doesn’t know if she should set up a company or sole trader. Discuss with Sarah the considerations of each option. (Tax)Christina is a divorced independent marketing consultant age 32, in excellent health, with two young children. She took out a $100,000 whole life insurance policy seven years ago, before the children were born. At that time she was employed in an administrative capacity in a real estate office and had a limited income. She appreciated the value of permanent life insurance but was concerned about her ability to afford whole life premiums over the long-term. Consequently, she chose a dividend option that applied the annual policy dividend to reduce the premium due each year. Christina is now doing much better financially and can easily afford the annual premium. With two children dependent on her she is concerned, however, that the death benefit of her policy should increase with inflation over the long-term. What dividend option could Christina select to meet her current needs? A) The premium reduction dividend option B) The cash dividend option C) The accumulation dividend option D)…
- Maria has extra money, and she is planning to buy certain income-earning assets to help her earn more. However, she wants to make sure that when she needs the money she temporarily invested, she will be able to get a part or whole of it immediatelySarah Mix is a single 30-year-old business owner who has $500 a month toinvest. This money is in excess of the contribution to her company pensionplan. Sarah hears that many of her friends are investing in mutual funds. Hergrandfather, Grandpa Russ, invested in the stock market and lost everything.He advises her to invest only in bonds. Her uncle, Sam, thinks thatshe should invest in stock mutual funds, but only in conservatively managedfunds that invest in U.S. blue-chip stocks. Sarah notes that her Grandpais 70 years old and her uncle is 55 years old. Her friend Jane, who is also30 years old, said she only invests in small capital growth funds.a. What should you advise Sarah to invest in?b. Why do you think these people have different investment strategies?Rudabeh, 34, and Donovan, 31, want to buy their first home. Their current combined net income is $66,000 and they have two auto loans totaling $33,000. They have saved approximately $11,000 for the purchase of their home and have total assets worth $60,000, which are mostly savings for retirement. Donovan has always been cautious about spending large amounts of money, but Rudabeh really likes the idea of owning their own home although she hasn't expressed her preference to Donovan. They do not have a budget, but they do keep track of their expenses, which amounted to $57,000 last year, including taxes. They pay off all credit card bills on a monthly basis and do not have any other debt or loans outstanding. Other than that, they do not spend a great deal of time tracking their finances. a. What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchase goal? What records should they use to compile these statements? b. Calculate their net worth and…