Financial Case Analysis for Sandra Hayhoe
Financial Case Analysis for Sandra Hayhoe
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Final Project for FN-320 & Prof. Carey Wunsch
Gingo Ruiz
Financial Case Analysis for Sandra Hayhoe
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Final Project for FN-320 & Prof. Carey Wunsch
Gingo Ruiz
Financial Case Analysis for Sandra Hayhoe
Strengths and weaknesses of the individual or family’s financial situation
The weaknesses that I observe in this situation are: * Sandra does not have a full-time job so her income is limited. * She has lost her health insurance due to his former employer bankruptcy. * She has a negative cash flow of $600 each month. * She does not have a will so her kids will not get her estate because it is assigned to their father (ex-husband). * She has a $4,270 balance on credit cards.
The strengths that I find in her situation are: * She has $7,600 in savings. * She has auto liability coverage 100/300/50. * She has an IRA account with $8,000 invested in certificates of deposit. * She has a pension plan from her former employer; which will be a reliable source of income when she reaches age 62.
Correction of any misinformation that the individual or family has about financial topics
Ms. Hayhoe is under the wrong impression that she will work all her life but she has to understand that there is a point where she will not be able to keep working at the same pace so her income will be considerably reduced. Hence she needs to start thinking about saving for retirement as soon as possible. In addition, she is under the impression that she cannot reduced her expenses; however, there are ways to reduce what she is paying in interest on her credit cards as well as reducing a little her auto insurance premium.
Comments about the individual or family’s cash flow
In this aspect, Ms. Hayhoe has to make some adjustments on the way she handles her cash flow. First of all, she has to start asking
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Final Project for FN-320 & Prof. Carey Wunsch
Gingo Ruiz
Financial Case Analysis for Sandra Hayhoe
-------------------------------------------------
Final Project for FN-320 & Prof. Carey Wunsch
Gingo Ruiz
Financial Case Analysis for Sandra Hayhoe
Strengths and weaknesses of the individual or family’s financial situation
The weaknesses that I observe in this situation are: * Sandra does not have a full-time job so her income is limited. * She has lost her health insurance due to his former employer bankruptcy. * She has a negative cash flow of $600 each month. * She does not have a will so her kids will not get her estate because it is assigned to their father (ex-husband). * She has a $4,270 balance on credit cards.
The strengths that I find in her situation are: * She has $7,600 in savings. * She has auto liability coverage 100/300/50. * She has an IRA account with $8,000 invested in certificates of deposit. * She has a pension plan from her former employer; which will be a reliable source of income when she reaches age 62.
Correction of any misinformation that the individual or family has about financial topics
Ms. Hayhoe is under the wrong impression that she will work all her life but she has to understand that there is a point where she will not be able to keep working at the same pace so her income will be considerably reduced. Hence she needs to start thinking about saving for retirement as soon as possible. In addition, she is under the impression that she cannot reduced her expenses; however, there are ways to reduce what she is paying in interest on her credit cards as well as reducing a little her auto insurance premium.
Comments about the individual or family’s cash flow
In this aspect, Ms. Hayhoe has to make some adjustments on the way she handles her cash flow. First of all, she has to start asking
References: for source materials used to analyze the case Madura, Jeff. Personal Finance. Fourth ed. Boston, MA: Pearson, 2011. Print