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- 1. Jerry & Cassandra Williams' Personal Data Line Item Monthly Amount Personal Residence $ - $350,000 Checking Account Balance 7,000 Savings Account Balance 15,000 Money Market Mutual Funds 12,000 Jerry's Growth Mutual Fund 5,750 Cassandra's Municipal Bond Fund 7,000 Power Station, Inc. Stock 8,000 Jerry's Florida Condo Inheritance 110,000 Land near Ruidoso 65,000 Jerry's Apartment Building 125,000 Auto #1 25,000 Auto #2 17,500 Wizard Research Associates 250,000 Cassandra's Trust Value 100,000 Jerry's Whole Life Insurance Cash Value 5,500 Cassandra's IRA Accounts 17,000 Cassandra's Defined Contribution Retirement Plan Value 35,000 Jerry's Universal Life Insurance Cash Value 3,000 Jerry's Treasury Note Current Market Value 147,837 Mortgage P&I Payment (Personal Residence) 1,520 18,241 Property Tax (Personal Residence) 7,800 Property Tax (Florida Condo) 1,000 Mortgage P&I Payment (Land) 237 2,847 Property Tax (Land) 700 Mortgage P&I Payment (Apartment) 349 4,188 Auto Loan Payments 830 9,960 Child Support Payments (Jerry) 1,000 12,000 Jerry's Whole Life Insurance Premium Payments 2,000 Apartment Taxes 2,500 Apartment Maintenance 500 Charity Contributions 2,000 Jerry's University Annuity (Contribution) 7,200 Group Medical Insurance (Payroll Deduction) 350 4,200 Jerry's Universal Life Insurance Premium 800 Property & Liability Insurance Premium (Personal Residence) 1,800 Auto Insurance Premium (Both Cars) (semi-annual) 2,600 Reinvested Investment Income 3,183 FICA (Jerry's Salary) 6,885 FICA (Jerry's Business Income) 3,475 FICA (Cassandra's Salary) 3,443 FIT 36,393 Money Market Mutual Fund (Contribution) 500 6,000 Property & Liability Insurance Premium (Apartment) 875 Out-of-Pocket Medical Expenses 1,525
- 2. Vacations 4,700 Personal Care 125 1500 Food 1,385 16620 Furniture, Appliance, Housing 390 4680 Child Care 500 6000 Entertainment 395 4740 Clothing 500 6000 Auto Maintenance 175 2100 Gasoline 345 4140 Utilities, including cable and internet 785 9420 Credit Card P&I Payment 392 4704 Football and Basketball Tickets 5000 Miscellaneous 150 1800 Unreimbursed Business Expenses 1,350 Power Station, Inc. Stock Dividend 480 Money Market Mutual Fund Dividend 68 Jerry's Growth Mutual Fund Dividend 100 Apartment Building Rental Income 11,000 Jerry's University Salary 90,000 Jerry's Wizard Research Associates Net Income 48,000 Cassandra's Hospital Salary 45,000 Cassandra's Trust Income 5,000 Interest Income 110 Cassandra's Municipal Bond Fund Coupon 175 Jerry's U.S. Treasury Note Interest 2,250 Mortgage Balance (Personal Residence) 286,595 Mortgage Balance (Land) 21,933 Mortgage Balance (Apartment) 60,282 Auto Loan Balance 16,434 Credit Card Debt Balance 7,843 Jerry's Employer's Matching Annuity 7,200
- 3. Classification Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow
- 4. Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Liability Liability Liability Liability Liability Savings
- 5. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $350,000 Asset Checking Account Balance $7,000 Asset Savings Account Balance $15,000 Asset Money Market Mutual Funds $12,000 Asset Jerry's Growth Mutual Fund $5,750 Asset Cassandra's Municipal Bond Fund $7,000 Asset Power Station, Inc. Stock $8,000 Asset Jerry's Florida Condo Inheritance $110,000 Asset Land near Ruidoso $65,000 Asset Jerry's Apartment Building $125,000 Asset Auto #1 $25,000 Asset Auto #2 $17,500 Asset Wizard Research Associates $250,000 Asset Cassandra's Trust Value $100,000 Asset Jerry's Whole Life Insurance Cash Value $5,500 Asset Cassandra's IRA Accounts $17,000 Asset Cassandra's Defined Contribution Retirement Plan Value $35,000 Asset Jerry's Universal Life Insurance Cash Value $3,000 Asset Jerry's Treasury Note Current Market Value $147,837 Asset Mortgage P&I Payment (Personal Residence) $18,241 Cash Outflow Property Tax (Personal Residence) $7,800 Cash Outflow Property Tax (Florida Condo) $1,000 Cash Outflow Mortgage P&I Payment (Land) $2,847 Cash Outflow Property Tax (Land) $700 Cash Outflow Mortgage P&I Payment (Apartment) $4,188 Cash Outflow Auto Loan Payments $9,960 Cash Outflow Child Support Payments (Jerry) $12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments $2,000 Cash Outflow Apartment Taxes $2,500 Cash Outflow Apartment Maintenance $500 Cash Outflow Charity Contributions $2,000 Cash Outflow Jerry's University Annuity (Contribution) $7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) $4,200 Cash Outflow Jerry's Universal Life Insurance Premium $800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) $1,800 Cash Outflow Auto Insurance Premium $2,600 Cash Outflow Reinvested Investment Income $3,183 Cash Outflow FICA (Jerry's Salary) $6,885 Cash Outflow FICA (Jerry's Business Income) $3,475 Cash Outflow FICA (Cassandra's Salary) $3,443 Cash Outflow FIT $36,393 Cash Outflow Money Market Mutual Fund (Contribution) $6,000 Cash Outflow Property & Liability Insurance Premium (Apartment) $875 Cash Outflow
- 6. Out-of-Pocket Medical Expenses $1,525 Cash Outflow Vacations $4,700 Cash Outflow Personal Care $1,500 Cash Outflow Food $16,620 Cash Outflow Furniture, Appliance, Housing $4,680 Cash Outflow Child Care $6,000 Cash Outflow Entertainment $4,740 Cash Outflow Clothing $6,000 Cash Outflow Auto Maintenance $2,100 Cash Outflow Gasoline $4,140 Cash Outflow Utilities, including cable and internet $9,420 Cash Outflow Credit Card P&I Payment $4,704 Cash Outflow Football and Basketball Tickets $5,000 Cash Outflow Miscellaneous $1,800 Cash Outflow Unreimbursed Business Expenses $1,350 Cash Outflow Power Station, Inc. Stock Dividend $480 Cash Inflow Money Market Mutual Fund Dividend $68 Cash Inflow Jerry's Growth Mutual Fund Dividend $100 Cash Inflow Apartment Building Rental Income $11,000 Cash Inflow Jerry's University Salary $90,000 Cash Inflow Jerry's Wizard Research Associates Net Income $48,000 Cash Inflow Cassandra's Hospital Salary $45,000 Cash Inflow Cassandra's Trust Income $5,000 Cash Inflow Interest Income $110 Cash Inflow Cassandra's Municipal Bond Fund Coupon $175 Cash Inflow Jerry's U.S. Treasury Note Interest $2,250 Cash Inflow Mortgage Balance (Personal Residence) $286,595 Liability Mortgage Balance (Land) $21,933 Liability Mortgage Balance (Apartment) $60,282 Liability Auto Loan Balance $16,434 Liability Credit Card Debt Balance $7,843 Liability Jerry's Employer's Matching Annuity $7,200 Savings Unidentified Cash
- 7. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2010 % of Total Cash Inflow Amount Inflow Employment Jerry's University Salary $90,000 44.51% Jerry's Wizard Research Associates Net Income 48,000 23.74% Cassandra's Hospital Salary 45,000 22.26% Total Employment 183,000 90.51% Other Inflows Apartment Building Rental Income 11,000 5.44% Cassandra's Trust Income 5,000 2.47% Cassandra's Municipal Bond Fund Coupon 175 0.09% Jerry's U.S. Treasury Note Interest 2,250 1.11% Power Station, Inc. Stock Dividend 480 0.24% Money Market Mutual Fund Dividend 68 0.03% Jerry's Growth Mutual Fund Dividend 100 0.05% Interest Income 110 0.05% Total Other Inflows 19,183 9.49% Total Cash Inflows 202,183 100.00% % of Total Cash Outflow Amount Outflow Payroll Taxes FIT 34,309 16.12% FICA (Jerry's Salary) 6,885 3.24% FICA (Jerry's Business Income) 3,475 1.63% FICA (Cassandra's Salary) 3,443 1.62% Total Payroll Taxes 48,112 22.61% Planned Savings and Investments Reinvested Investment Income 3,183 1.50% Jerry's University Annuity (Contribution) 7,200 3.38% Money Market Mutual Fund (Contribution) 6,000 2.82% Total Planned Savings and Investments 16,383 7.70% Personal Residence Mortgage P&I Payment 18,241 8.57% Property Tax 7,800 3.67% Property & Liability Insurance Premium 1,800 0.85% Utilities, including cable and internet 9,420 4.43% Furniture, Appliance, Housing 4,680 2.20% Total Personal Residence 41,941 19.71% Land near Ruidoso Mortgage P&I Payment 2,847 1.34% Property Tax 700 0.33% Total Land near Ruidoso 3,547 1.67%
- 8. Apartment Building Mortgage P&I Payment 4,188 1.97% Apartment Taxes 2,500 1.17% Apartment Maintenance 500 0.23% Property & Liability Insurance Premium 875 0.41% Total Apartment Building 8,063 3.79% Automobile Expenses Auto Loan Payments 9,960 4.68% Auto Insurance Premium 2,600 1.22% Auto Maintenance 2,100 0.99% Gasoline 4,140 1.95% Total Automobile Expenses 18,800 8.84% Living Expenses Out-of-Pocket Medical Expenses 1,525 0.72% Vacations 4,700 2.21% Personal Care 1,500 0.70% Food 16,620 7.81% Child Care 6,000 2.82% Entertainment 4,740 2.23% Clothing 6,000 2.82% Football and Basketball Tickets 5,000 2.35% Miscellaneous 1,800 0.85% Total Living Expenses 47,885 22.50% Other Outflows Jerry's Whole Life Insurance Premium Payments 2,000 0.94% Group Medical Insurance (Payroll Deduction) 4,200 1.97% Jerry's Universal Life Insurance Premium 800 0.38% Property Tax (Florida Condo) 1,000 0.47% Child Support Payments (Jerry) 12,000 5.64% Charity Contributions 2,000 0.94% Credit Card P&I Payment 4,704 2.21% Unreimbursed Business Expenses 1,350 0.63% Total Other Outflows 28,054 13.18% Total Cash Outflows 212,785 100.00% Unidentified Cash Flow ($10,602) -5.24%
- 9. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $350,000 Asset Checking Account Balance $7,000 Asset Savings Account Balance $15,000 Asset Money Market Mutual Funds $12,000 Asset Jerry's Growth Mutual Fund $5,750 Asset Cassandra's Municipal Bond Fund $7,000 Asset Power Station, Inc. Stock $8,000 Asset Jerry's Florida Condo Inheritance $110,000 Asset Land near Ruidoso $65,000 Asset Jerry's Apartment Building $125,000 Asset Auto #1 $25,000 Asset Auto #2 $17,500 Asset Wizard Research Associates $250,000 Asset Cassandra's Trust Value $100,000 Asset Jerry's Whole Life Insurance Cash Value $5,500 Asset Cassandra's IRA Accounts $17,000 Asset Cassandra's Defined Contribution Retirement Plan Value $35,000 Asset Jerry's Universal Life Insurance Cash Value $3,000 Asset Jerry's Treasury Note Current Market Value $147,837 Asset Mortgage P&I Payment (Personal Residence) $18,241 Cash Outflow Property Tax (Personal Residence) $7,800 Cash Outflow Property Tax (Florida Condo) $1,000 Cash Outflow Mortgage P&I Payment (Land) $2,847 Cash Outflow Property Tax (Land) $700 Cash Outflow Mortgage P&I Payment (Apartment) $4,188 Cash Outflow Auto Loan Payments $9,960 Cash Outflow Child Support Payments (Jerry) $12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments $2,000 Cash Outflow Apartment Taxes $2,500 Cash Outflow Apartment Maintenance $500 Cash Outflow Charity Contributions $2,000 Cash Outflow Jerry's University Annuity (Contribution) $7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) $4,200 Cash Outflow Jerry's Universal Life Insurance Premium $800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) $1,800 Cash Outflow Auto Insurance Premium $2,600 Cash Outflow Reinvested Investment Income $3,183 Cash Outflow FICA (Jerry's Salary) $6,885 Cash Outflow FICA (Jerry's Business Income) $3,475 Cash Outflow FICA (Cassandra's Salary) $3,443 Cash Outflow FIT $36,393 Cash Outflow Money Market Mutual Fund (Contribution) $6,000 Cash Outflow Property & Liability Insurance Premium (Apartment) $875 Cash Outflow
- 10. Out-of-Pocket Medical Expenses $1,525 Cash Outflow Vacations $4,700 Cash Outflow Personal Care $1,500 Cash Outflow Food $16,620 Cash Outflow Furniture, Appliance, Housing $4,680 Cash Outflow Child Care $6,000 Cash Outflow Entertainment $4,740 Cash Outflow Clothing $6,000 Cash Outflow Auto Maintenance $2,100 Cash Outflow Gasoline $4,140 Cash Outflow Utilities, including cable and internet $9,420 Cash Outflow Credit Card P&I Payment $4,704 Cash Outflow Football and Basketball Tickets $5,000 Cash Outflow Miscellaneous $1,800 Cash Outflow Unreimbursed Business Expenses $1,350 Cash Outflow Power Station, Inc. Stock Dividend $480 Cash Inflow Money Market Mutual Fund Dividend $68 Cash Inflow Jerry's Growth Mutual Fund Dividend $100 Cash Inflow Apartment Building Rental Income $11,000 Cash Inflow Jerry's University Salary $90,000 Cash Inflow Jerry's Wizard Research Associates Net Income $48,000 Cash Inflow Cassandra's Hospital Salary $45,000 Cash Inflow Cassandra's Trust Income $5,000 Cash Inflow Interest Income $110 Cash Inflow Cassandra's Municipal Bond Fund Coupon $175 Cash Inflow Jerry's U.S. Treasury Note Interest $2,250 Cash Inflow Mortgage Balance (Personal Residence) $286,595 Liability Mortgage Balance (Land) $21,933 Liability Mortgage Balance (Apartment) $60,282 Liability Auto Loan Balance $16,434 Liability Credit Card Balance $7,843 Liability Jerry's Employer's Matching Annuity $7,200 Savings
- 11. Net Worth Statement - Jerry & Cassandra Williams As of September 24, 2011 % of Total Assets Amount Assets Liquid Assets Checking Account Balance $7,000 0.58% Savings Account Balance 15,000 1.24% Money Market Mutual Funds 12,000 1.00% Total Liquid Assets 34,000 2.82% Investment Assets Jerry's Growth Mutual Fund 5,750 0.48% Cassandra's Municipal Bond Fund 7,000 0.58% Power Station, Inc. Stock 8,000 0.66% Jerry's Whole Life Insurance Cash Value 5,500 0.46% Jerry's Universal Life Insurance Cash Value 3,000 0.25% Jerry's Treasury Note Current Market Value 147,837 12.26% Jerry's Florida Condo Inheritance 110,000 9.12% Jerry's Apartment Building 125,000 10.37% Wizard Research Associates Ownership 250,000 20.74% Total Investment Assets 662,087 54.92% Retirement Assets Cassandra's IRA Accounts 17,000 1.41% Cassandra's Defined Contribution Retirement Plan 35,000 2.90% Total Retirement Assets 52,000 4.31% Personal Use Assets Personal Residence 350,000 29.03% Automobile #1 25,000 2.07% Automobile #2 17,500 1.45% Land near Ruidoso 65,000 5.39% Total Personal Use Assets 457,500 37.95% Total Assets 1,205,587 100.00% % of Total Liabilities Amount Liabilities Short-Term Liabilities Credit Card Balance 7,843 2.00% Total Short-Term Liabilities 7,843 2.00% Long-Term Liabilities Personal Residence Mortgage Balance 286,595 72.91% Land near Ruidoso Mortgage Balance 21,933 5.58% Apartment Mortgage Balance 60,282 15.34% Auto Loan Balance 16,434 4.18% Total Long-Term Liabilities 385,244 98.00% Total Liabilities 393,087 100.00% Net Worth $812,500
- 12. Ratio Analysis - Jerry & Cassandra Williams Target Analysis Liquidity A cause for concern. I suggest Emergency Fund liquid assets 1.92 (months) ≥ 2.5 months having 3 to 6 months for a monthly expenses emergency fund. Increase liquidity or decrease spending. Current ratio current assets 4.34 (months) 1-2 months current liabilities Good Savings savings 8.10% ≥ 10 % Savings is too low compared gross income to total income. Increase savings. Asset Allocation liquid assets 4.18% ≥ 15 % Nowhere near amount of liquid net worth assets needed. net investment assets 87.89% ≥ 50 % Great net worth Tax Burden payroll taxes 23.80% ≤ 30% Good gross income payroll + property taxes 29.73% ≤ 35% Good gross income Housing Expense homeowner's expenses 20.74% ≤ 35% Great gross income Debt Consumer Debt ratio non-mortgage debt payments 9.52% ≤ 15% reasonable Good after-tax-income ≥ 20 % danger-point total debt payments 35.45% ≤ 35% reasonable Watch closely
- 13. after-tax income ≥ 45 % danger-point total debt 48.38% varies net worth long-term debt 47.41% varies net worth total debt 32.61% varies total assets long-term debt 31.95% varies total assets
- 14. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $350,000 Asset Checking Account Balance $7,000 Asset Savings Account Balance $15,000 Asset Money Market Mutual Funds $12,000 Asset Jerry's Growth Mutual Fund $5,750 Asset Cassandra's Municipal Bond Fund $7,000 Asset Power Station, Inc. Stock $8,000 Asset Jerry's Florida Condo Inheritance $110,000 Asset Land near Ruidoso $65,000 Asset Jerry's Apartment Building $125,000 Asset Auto #1 $25,000 Asset Auto #2 $17,500 Asset Wizard Research Associates $250,000 Asset Cassandra's Trust Value $100,000 Asset Jerry's Whole Life Insurance Cash Value $5,500 Asset Cassandra's IRA Accounts $17,000 Asset Cassandra's Defined Contribution Retirement Plan Value $35,000 Asset Jerry's Universal Life Insurance Cash Value $3,000 Asset Jerry's Treasury Note Current Market Value $147,837 Asset Mortgage P&I Payment (Personal Residence) $18,241 Cash Outflow Property Tax (Personal Residence) $7,800 Cash Outflow Property Tax (Florida Condo) $1,000 Cash Outflow Mortgage P&I Payment (Land) $2,847 Cash Outflow Property Tax (Land) $700 Cash Outflow Mortgage P&I Payment (Apartment) $4,188 Cash Outflow Auto Loan Payments $9,960 Cash Outflow Child Support Payments (Jerry) $12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments $2,000 Cash Outflow Apartment Taxes $2,500 Cash Outflow Apartment Maintenance $500 Cash Outflow Charity Contributions $2,000 Cash Outflow Jerry's University Annuity (Contribution) $7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) $4,200 Cash Outflow Jerry's Universal Life Insurance Premium $800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) $1,800 Cash Outflow Auto Insurance Premium $2,600 Cash Outflow Reinvested Investment Income $3,183 Cash Outflow FICA (Jerry's Salary) $6,885 Cash Outflow FICA (Jerry's Business Income) $3,475 Cash Outflow FICA (Cassandra's Salary) $3,443 Cash Outflow FIT $36,393 Cash Outflow Money Market Mutual Fund (Contribution) $6,000 Cash Outflow Property & Liability Insurance Premium (Apartment) $875 Cash Outflow
- 15. Out-of-Pocket Medical Expenses $1,525 Cash Outflow Vacations $4,700 Cash Outflow Personal Care $1,500 Cash Outflow Food $16,620 Cash Outflow Furniture, Appliance, Housing $4,680 Cash Outflow Child Care $6,000 Cash Outflow Entertainment $4,740 Cash Outflow Clothing $6,000 Cash Outflow Auto Maintenance $2,100 Cash Outflow Gasoline $4,140 Cash Outflow Utilities, including cable and internet $9,420 Cash Outflow Credit Card P&I Payment $4,704 Cash Outflow Football and Basketball Tickets $5,000 Cash Outflow Miscellaneous $1,800 Cash Outflow Unreimbursed Business Expenses $1,350 Cash Outflow Power Station, Inc. Stock Dividend $480 Cash Inflow Money Market Mutual Fund Dividend $68 Cash Inflow Jerry's Growth Mutual Fund Dividend $100 Cash Inflow Apartment Building Rental Income $11,000 Cash Inflow Jerry's University Salary $90,000 Cash Inflow Jerry's Wizard Research Associates Net Income $48,000 Cash Inflow Cassandra's Hospital Salary $45,000 Cash Inflow Cassandra's Trust Income $5,000 Cash Inflow Interest Income $110 Cash Inflow Cassandra's Municipal Bond Fund Coupon $175 Cash Inflow Jerry's U.S. Treasury Note Interest $2,250 Cash Inflow Mortgage Balance (Personal Residence) $286,595 Liability Mortgage Balance (Land) $21,933 Liability Mortgage Balance (Apartment) $60,282 Liability Auto Loan Balance $16,434 Liability Credit Card Debt Balance $7,843 Liability Jerry's Employer's Matching Annuity $7,200 Savings Unidentified Cash
- 16. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2011 % of Total Cash Inflow Amount Inflow Employment Jerry's University Salary $90,000 44.51% Jerry's Wizard Research Associates Net Income 48,000 23.74% Cassandra's Hospital Salary 45,000 22.26% Total Employment 183,000 90.51% Other Inflows Apartment Building Rental Income 11,000 5.44% Cassandra's Trust Income 5,000 2.47% Cassandra's Municipal Bond Fund Coupon 175 0.09% Jerry's U.S. Treasury Note Interest 2,250 1.11% Power Station, Inc. Stock Dividend 480 0.24% Money Market Mutual Fund Dividend 68 0.03% Jerry's Growth Mutual Fund Dividend 100 0.05% Interest Income 110 0.05% Total Other Inflows 19,183 9.49% Total Cash Inflows 202,183 100.00% % of Total Cash Outflow Amount Outflow Payroll Taxes FIT 34,309 17.43% FICA (Jerry's Salary) 6,885 3.50% FICA (Jerry's Business Income) 3,475 1.77% FICA (Cassandra's Salary) 3,443 1.75% Total Payroll Taxes 48,112 24.44% Planned Savings and Investments Reinvested Investment Income 3,183 1.62% Jerry's University Annuity (Contribution) 7,200 3.66% Money Market Mutual Fund (Contribution) 0 (-100%) 0.00% Total Planned Savings and Investments 10,383 5.28% Personal Residence Mortgage P&I Payment 18,241 9.27% Property Tax 7,800 3.96% Property & Liability Insurance Premium 1,800 0.91% Utilities, including cable and internet 9,420 4.79% Furniture, Appliance, Housing 4,680 2.38% Total Personal Residence 41,941 21.31% Land near Ruidoso Mortgage P&I Payment 2,847 1.45% Property Tax 700 0.36% Total Land near Ruidoso 3,547 1.80%
- 17. Apartment Building Mortgage P&I Payment 4,188 2.13% Apartment Taxes 2,500 1.27% Apartment Maintenance 500 0.25% Property & Liability Insurance Premium 875 0.44% Total Apartment Building 8,063 4.10% Automobile Expenses Auto Loan Payments 9,960 5.06% Auto Insurance Premium 2,600 1.32% Auto Maintenance 2,100 1.07% Gasoline 4,140 2.10% Total Automobile Expenses 18,800 9.55% Living Expenses Out-of-Pocket Medical Expenses 1,525 0.77% Vacations 3,525 (-25%) 1.79% Personal Care 1,350 (-10%) 0.69% Food 14,958 (-10%) 7.60% Child Care 6,000 3.05% Entertainment 3,555 (-25%) 1.81% Clothing 5,400 (-10%) 2.74% Football and Basketball Tickets 0 (-100%) 0.00% Miscellaneous 1,620 (-10%) 0.82% Total Living Expenses 37,933 19.27% Other Outflows Jerry's Whole Life Insurance Premium Payments 2,000 1.02% Group Medical Insurance (Payroll Deduction) 4,200 2.13% Jerry's Universal Life Insurance Premium 800 0.41% Property Tax (Florida Condo) 1,000 0.51% Child Support Payments (Jerry) 12,000 6.10% Charity Contributions 2,000 1.02% Credit Card P&I Payment 4,704 2.39% Unreimbursed Business Expenses 1,350 0.69% Total Other Outflows 28,054 14.25% Total Cash Outflows 196,833 100.00% Unidentified Cash Flow $5,350 2.65%
- 18. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $350,000 Asset Checking Account Balance $7,000 Asset Savings Account Balance $15,000 Asset Money Market Mutual Funds $12,000 Asset Jerry's Growth Mutual Fund $5,750 Asset Cassandra's Municipal Bond Fund $7,000 Asset Power Station, Inc. Stock $8,000 Asset Jerry's Florida Condo Inheritance $110,000 Asset Land near Ruidoso $65,000 Asset Jerry's Apartment Building $125,000 Asset Auto #1 $25,000 Asset Auto #2 $17,500 Asset Wizard Research Associates $250,000 Asset Cassandra's Trust Value $100,000 Asset Jerry's Whole Life Insurance Cash Value $5,500 Asset Cassandra's IRA Accounts $17,000 Asset Cassandra's Defined Contribution Retirement Plan Value $35,000 Asset Jerry's Universal Life Insurance Cash Value $3,000 Asset Jerry's Treasury Note Current Market Value $147,837 Asset Mortgage P&I Payment (Personal Residence) $18,241 Cash Outflow Property Tax (Personal Residence) $7,800 Cash Outflow Property Tax (Florida Condo) $1,000 Cash Outflow Mortgage P&I Payment (Land) $2,847 Cash Outflow Property Tax (Land) $700 Cash Outflow Mortgage P&I Payment (Apartment) $4,188 Cash Outflow Auto Loan Payments $9,960 Cash Outflow Child Support Payments (Jerry) $12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments $2,000 Cash Outflow Apartment Taxes $2,500 Cash Outflow Apartment Maintenance $500 Cash Outflow Charity Contributions $2,000 Cash Outflow Jerry's University Annuity (Contribution) $7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) $4,200 Cash Outflow Jerry's Universal Life Insurance Premium $800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) $1,800 Cash Outflow Auto Insurance Premium $2,600 Cash Outflow Reinvested Investment Income $3,183 Cash Outflow FICA (Jerry's Salary) $6,885 Cash Outflow FICA (Jerry's Business Income) $3,475 Cash Outflow FICA (Cassandra's Salary) $3,443 Cash Outflow FIT $36,393 Cash Outflow Money Market Mutual Fund (Contribution) $6,000 Cash Outflow Property & Liability Insurance Premium (Apartment) $875 Cash Outflow
- 19. Out-of-Pocket Medical Expenses $1,525 Cash Outflow Vacations $4,700 Cash Outflow Personal Care $1,500 Cash Outflow Food $16,620 Cash Outflow Furniture, Appliance, Housing $4,680 Cash Outflow Child Care $6,000 Cash Outflow Entertainment $4,740 Cash Outflow Clothing $6,000 Cash Outflow Auto Maintenance $2,100 Cash Outflow Gasoline $4,140 Cash Outflow Utilities, including cable and internet $9,420 Cash Outflow Credit Card P&I Payment $4,704 Cash Outflow Football and Basketball Tickets $5,000 Cash Outflow Miscellaneous $1,800 Cash Outflow Unreimbursed Business Expenses $1,350 Cash Outflow Power Station, Inc. Stock Dividend $480 Cash Inflow Money Market Mutual Fund Dividend $68 Cash Inflow Jerry's Growth Mutual Fund Dividend $100 Cash Inflow Apartment Building Rental Income $11,000 Cash Inflow Jerry's University Salary $90,000 Cash Inflow Jerry's Wizard Research Associates Net Income $48,000 Cash Inflow Cassandra's Hospital Salary $45,000 Cash Inflow Cassandra's Trust Income $5,000 Cash Inflow Interest Income $110 Cash Inflow Cassandra's Municipal Bond Fund Coupon $175 Cash Inflow Jerry's U.S. Treasury Note Interest $2,250 Cash Inflow Mortgage Balance (Personal Residence) $286,595 Liability Mortgage Balance (Land) $21,933 Liability Mortgage Balance (Apartment) $60,282 Liability Auto Loan Balance $16,434 Liability Credit Card Balance $7,843 Liability Jerry's Employer's Matching Annuity $7,200 Savings
- 20. Net Worth Statement - Jerry & Cassandra Williams As of October 6, 2011 % of Total Assets Amount Assets Liquid Assets Checking Account Balance $7,000 Inflow of 0.58% Savings Account Balance 20,350 (+2850) 1.68% Money Market Mutual Funds 12,000 0.99% Total Liquid Assets 39,350 3.25% Investment Assets Jerry's Growth Mutual Fund 5,750 0.47% Cassandra's Municipal Bond Fund 7,000 0.58% Power Station, Inc. Stock 8,000 0.66% Jerry's Whole Life Insurance Cash Value 5,500 0.45% Jerry's Universal Life Insurance Cash Value 3,000 0.25% Jerry's Treasury Note Current Market Value 147,837 12.21% Jerry's Florida Condo Inheritance 110,000 9.08% Jerry's Apartment Building 125,000 10.32% Wizard Research Associates Ownership 250,000 20.65% Total Investment Assets 662,087 54.68% Retirement Assets Cassandra's IRA Accounts 17,000 1.40% Cassandra's Defined Contribution Retirement Plan 35,000 2.89% Total Retirement Assets 52,000 4.29% Personal Use Assets Personal Residence 350,000 28.90% Automobile #1 25,000 2.06% Automobile #2 17,500 1.45% Land near Ruidoso 65,000 5.37% Total Personal Use Assets 457,500 37.78% Total Assets 1,210,937 100.00% % of Total Liabilities Amount Liabilities Short-Term Liabilities Credit Card Balance 7,843 2.00% Total Short-Term Liabilities 7,843 2.00% Long-Term Liabilities Personal Residence Mortgage Balance 286,595 72.91% Land near Ruidoso Mortgage Balance 21,933 5.58% Apartment Mortgage Balance 60,282 15.34% Auto Loan Balance 16,434 4.18% Total Long-Term Liabilities 385,244 98.00% Total Liabilities 393,087 100.00% Net Worth $817,850
- 21. Ratio Analysis - Jerry & Cassandra Williams (after recommendations) Target Analysis Liquidity Emergency Fund liquid assets 2.40 (months) ≥ 2.5 months Improved, but still need to try monthly expenses to reduce expenses/save more to reach the goal of 3 months Current ratio current assets 5.02 (months) 1-2 months current liabilities Good Savings savings 5.14% ≥ 10 % Good gross income It would be very hard in their Asset Allocation liquid assets 4.81% ≥ 15 % current situation to satisfy this net worth ratio. After they pay off some of their debt (CC) it will improve. net investment assets 87.31% ≥ 50 % net worth Great Tax Burden payroll taxes 23.80% ≤ 30% Good gross income payroll + property taxes 29.73% ≤ 35% Good gross income Housing Expense homeowner's expenses 20.74% ≤ 35% Great gross income Debt Consumer Debt ratio non-mortgage debt payments 9.52% ≤ 15% reasonable Good after-tax-income ≥ 20 % danger-point total debt payments 35.45% ≤ 35% reasonable Watch closely
- 22. after-tax income ≥ 45 % danger-point total debt 48.06% varies net worth long-term debt 47.10% varies net worth total debt 32.46% varies total assets long-term debt 31.81% varies total assets
- 23. d, but still need to try expenses/save more to he goal of 3 months Good be very hard in their ation to satisfy this they pay off some of CC) it will improve. Watch closely
- 24. Statement of Cash Flows Jerry and Cassandra Williams December 31, 2010 This is a statement of all of your cash inflows and outflows from the past year, ending on December 31, 2010. Since your cash outflows exceeded your cash inflows the amount of available cash flows is negative. In order to be ensure stability and enable future spending we need to increase this number next year. I believe the best way to reduce cash outflows is to cut back on unnecessary spending. This is discussed later on the recommendations page. Cash Inflows Employment $183,000 Other Inflows 19,183 Total Cash Inflows 202,183 Cash Outflows Payroll Taxes (48,112) Planned Savings and Investments (16,383) Personal Residence (41,941) Land near Ruidoso (3,547) Apartment Building (8,063) Auto (18,800) Living Expenses (47,885) Other Outflows (28,054) Total Cash Outflows (212,785) Available Cash Flows ($10,602) Personal Residence Cash Outflows for 2010 Land near -35% Ruidoso Apartment -1% Building -2% Planned Savings and Investments -3% Other Inflows 40% Payroll Taxes -19%
- 25. Statement of Net Worth Jerry and Cassandra Williams September 24, 2011 This is a statement showing all of your assets and liabilities as of September 24, 2011. Your net worth is the number of assets minus the liabilities amount. You have a positive net worth of $812,500. Assets Liquid Assets $34,000 Investment Assets 662,087 Retirement Assets 52,000 Personal Use Assets 457,500 Total Assets 1,205,587 Liabilities Short-term Liabilities 7,843 Long-term Liabilities 385,244 Total Liabilities 393,087 Net Worth $812,500 Total Assets Personal Use Liquid Assets Assets 4% 41% Retirement Assets 5% Investment Assets 50%
- 26. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $360,000 Asset Checking Account Balance 7,000 Asset Savings Account Balance 15,000 Asset Money Market Mutual Funds 20,000 Asset Jerry's Growth Mutual Fund 5,750 Asset Cassandra's Municipal Bond Fund 7,000 Asset Power Station, Inc. Stock 8,000 Asset Land near Ruidoso 65,000 Asset Jerry's Apartment Building 125,000 Asset Auto #1 25,000 Asset Auto #2 17,500 Asset Wizard Research Associates 250,000 Asset Cassandra's Trust Value 100,000 Asset Jerry's Whole Life Insurance Cash Value 5,500 Asset Cassandra's IRA Accounts 17,000 Asset Cassandra's Defined Contribution Retirement Plan Value 35,000 Asset Jerry's Universal Life Insurance Cash Value 3,000 Asset Jerry's Treasury Note Current Market Value 147,837 Asset Closing Costs (Lubbock Home) 21,000 Cash Outflow Closing Costs (Ransom Canyon Home) 5,641 Cash Outflow Mortgage Downpayment (Personal Residence) 72,000 Cash Outflow Home Owner's Association Fee (Personal Residence) 120 Cash Outflow Mortgage P&I Payment (Personal Residence) 30,096 Cash Outflow Property Tax (Personal Residence) 10,150 Cash Outflow Mortgage P&I Payment (Land) 2,847 Cash Outflow Property Tax (Land) 700 Cash Outflow Mortgage P&I Payment (Apartment) 4,187 Cash Outflow Auto Loan Payments 9,960 Cash Outflow Child Support Payments (Jerry) 12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments 2,000 Cash Outflow Apartment Taxes 2,500 Cash Outflow Apartment Maintenance 500 Cash Outflow Charity Contributions 2,000 Cash Outflow Jerry's University Annuity (Contribution) 7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) 4,200 Cash Outflow Jerry's Universal Life Insurance Premium 800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) 1,800 Cash Outflow Auto Insurance Premium 1,300 Cash Outflow Reinvested Investment Income 3,183 Cash Outflow FICA (Jerry's Salary) 6,885 Cash Outflow FICA (Jerry's Business Income) 3,475 Cash Outflow FICA (Cassandra's Salary) 3,443 Cash Outflow FIT 58,721 Cash Outflow
- 27. Property & Liability Insurance Premium (Apartment) 875 Cash Outflow Out-of-Pocket Medical Expenses 1,525 Cash Outflow Vacations 4,700 Cash Outflow Personal Care 1,500 Cash Outflow Food 16,620 Cash Outflow Furniture, Appliance, Housing 4,680 Cash Outflow Child Care 6,000 Cash Outflow Entertainment 4,740 Cash Outflow Clothing 6,000 Cash Outflow Auto Maintenance 2,100 Cash Outflow Gasoline 4,140 Cash Outflow Utilities, including cable and internet 9,420 Cash Outflow Football and Basketball Tickets 5,000 Cash Outflow Miscellaneous 1,800 Cash Outflow Unreimbursed Business Expenses 1,350 Cash Outflow Sale of Lubbock Home 63,405 Cash Inflow Power Station, Inc. Stock Dividend 480 Cash Inflow Money Market Mutual Fund Dividend 68 Cash Inflow Jerry's Growth Mutual Fund Dividend 100 Cash Inflow Apartment Building Rental Income 11,000 Cash Inflow Jerry's University Salary 90,000 Cash Inflow Jerry's Wizard Research Associates Net Income 48,000 Cash Inflow Cassandra's Hospital Salary 45,000 Cash Inflow Cassandra's Trust Income 5,000 Cash Inflow Interest Income 110 Cash Inflow Cassandra's Municipal Bond Fund Coupon 175 Cash Inflow Jerry's U.S. Treasury Note Interest 2,250 Cash Inflow Mortgage Balance (Personal Residence) 280,476 Liability Mortgage Balance (Land) 21,933 Liability Mortgage Balance (Apartment) 60,282 Liability Auto Loan Balance 15,693 Liability Jerry's Employer's Matching Annuity 7,200 Savings Cash from 6-month CD that matured 71857 Cash Inflow Interest from 6-month CD (4 months in 2012) $359 Cash Inflow Charity Cont Unreimburse Total Cash Outflow Unidentified Cash
- 28. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2012 % of Total Cash Inflow Amount Inflow Employment Jerry's University Salary $90,000 26.64% Jerry's Wizard Research Associates Net Income 48,000 14.21% Cassandra's Hospital Salary 45,000 13.32% Subtotal Employment 183,000 54.17% Other Inflows Sale of Lubbock Home 63,405 18.77% Apartment Building Rental Income (Gross) 11,000 3.26% Cassandra's Trust Income 5,000 1.48% Interest on Municipal Bond Fund (Cassandra) 175 saved 0.05% Cash from 6-month CD that matured 71,857 until 21.27% Interest from 6-month CD (4 months in 2012) 359 purchase 0.11% Jerry's U.S. Treasury Note Interest 2,250 0.67% Power Station, Inc. Stock Dividend 480 0.14% Money Market Mutual Fund Dividend 68 0.02% Jerry's Growth Mutual Fund Dividend 100 0.03% Interest Income on Checking and Savings 110 0.03% Subtotal Other Inflows 154,804 45.83% Total Cash Inflows 337,804 100.00% % of Total Cash Outflow Amount Outflow Payroll Taxes FIT (Joint) 58,721 higher due 17.57% FICA (Jerry's Salary) 6,885 to sale 2.06% FICA (Jerry's Business Income) 3,475 1.04% FICA (Cassandra's Salary) 3,443 1.03% Subtotal Payroll Taxes 72,524 21.70% Planned Savings and Investments Reinvested Interest and Dividends 3,183 0.95% Jerry's University Annuity ( 401k Contribution) 7,200 2.15% Subtotal Planned Savings and Investments 10,383 3.11% Personal Residence Mortgage P&I Payment 30,096 (New 9.00% Property Tax 10,150 Home) 3.04% Closing Costs 5,641 1.69% Mortgage Downpayment 72,000 21.54% Home Owner's Association Fee 120 new 0.04% Property & Liability Insurance Premium 1,800 0.54% Utilities, including cable and internet 9,420 2.82% Furniture, Appliance, Housing 4,680 1.40%
- 29. Subtotal Personal Residence 133,907 40.06% Land near Ruidoso Mortgage P&I Payment 2,847 0.85% Property Tax 700 0.21% Subtotal Land near Ruidoso 3,547 1.06% Apartment Building Mortgage P&I Payment 4,187 1.25% Apartment Taxes 2,500 0.75% Apartment Maintenance 500 0.15% Property & Liability Insurance Premium 875 0.26% Subtotal Apartment Building 8,062 2.41% Automobile Expenses Auto Loan Payments (1st Car) 9,960 2.98% Auto Insurance Premium 1,300 0.39% Auto Maintenance 2,100 0.63% Gasoline 4,140 1.24% Subtotal Automobile Expenses 17,500 5.24% Living Expenses Out-of-Pocket Medical Expenses 1,525 0.46% Vacations 3,995 (-15%) 1.20% Personal Care 1,500 0.45% Food 15,789 (-5%) 4.72% Child Care 6,000 1.80% Entertainment 4,029 (-15%) 1.21% Clothing 5,700 (-5%) 1.71% Football and Basketball Tickets 5,000 1.50% Miscellaneous 1,440 (-20%) 0.43% Subtotal Living Expenses 44,978 13.46% Other Outflows Closing Costs (Lubbock Home) 21,000 6.28% Jerry's Whole Life Insurance Premium Payments 2,000 0.60% Group Medical Insurance (Payroll Deduction) 4,200 1.26% Jerry's Universal Life Insurance Premium 800 0.24% Child Support Payments (Jerry) 12,000 3.59% Charity Contributions 2,000 0.60% Unreimbursed Business Expenses 1,350 0.40% Subtotal Other Outflows 43,350 12.97% Total Cash Outflows 334,251 100.00% Unidentified Cash Flow $3,553 1.05%
- 30. Jerry & Cassandra Williams' Personal Data Line Item Amount Classification Personal Residence $360,000 Asset Checking Account Balance 7,000 Asset Savings Account Balance 15,000 Asset Money Market Mutual Funds $20,000 Asset Jerry's Growth Mutual Fund 5,750 Asset Cassandra's Municipal Bond Fund 7,000 Asset Power Station, Inc. Stock $8,000 Asset Land near Ruidoso $65,000 Asset Jerry's Apartment Building 125,000 Asset Auto #1 25,000 Asset Auto #2 $17,500 Asset Wizard Research Associates 250,000 Asset Cassandra's Trust Value 100,000 Asset Jerry's Whole Life Insurance Cash Value $5,500 Asset Cassandra's IRA Accounts $17,000 Asset Cassandra's Defined Contribution Retirement Plan Value 35,000 Asset Jerry's Universal Life Insurance Cash Value 3,000 Asset Jerry's Treasury Note Current Market Value $147,837 Asset Closing Costs (Lubbock Home) 21,000 Cash Outflow Closing Costs (Ransom Canyon Home) 5,641 Cash Outflow Mortgage Downpayment (Personal Residence) $72,000 Cash Outflow Home Owner's Association Fee (Personal Residence) $120 Cash Outflow Mortgage P&I Payment (Personal Residence) 30,096 Cash Outflow Property Tax (Personal Residence) 10,150 Cash Outflow Mortgage P&I Payment (Land) $2,847 Cash Outflow Property Tax (Land) 700 Cash Outflow Mortgage P&I Payment (Apartment) 4,187 Cash Outflow Auto Loan Payments $9,960 Cash Outflow Child Support Payments (Jerry) $12,000 Cash Outflow Jerry's Whole Life Insurance Premium Payments 2,000 Cash Outflow Apartment Taxes 2,500 Cash Outflow Apartment Maintenance $500 Cash Outflow Charity Contributions 2,000 Cash Outflow Jerry's University Annuity (Contribution) 7,200 Cash Outflow Group Medical Insurance (Payroll Deduction) $4,200 Cash Outflow Jerry's Universal Life Insurance Premium $800 Cash Outflow Property & Liability Insurance Premium (Personal Residence) 1,800 Cash Outflow Auto Insurance Premium 1,300 Cash Outflow Reinvested Investment Income $3,183 Cash Outflow FICA (Jerry's Salary) 6,885 Cash Outflow FICA (Jerry's Business Income) 3,475 Cash Outflow FICA (Cassandra's Salary) $3,443 Cash Outflow FIT $58,721 Cash Outflow
- 31. Property & Liability Insurance Premium (Apartment) 875 Cash Outflow Out-of-Pocket Medical Expenses 1,525 Cash Outflow Vacations $4,700 Cash Outflow Personal Care 1,500 Cash Outflow Food 16,620 Cash Outflow Furniture, Appliance, Housing $4,680 Cash Outflow Child Care $6,000 Cash Outflow Entertainment 4,740 Cash Outflow Clothing 6,000 Cash Outflow Auto Maintenance $2,100 Cash Outflow Gasoline 4,140 Cash Outflow Utilities, including cable and internet 9,420 Cash Outflow Football and Basketball Tickets $5,000 Cash Outflow Miscellaneous $1,800 Cash Outflow Unreimbursed Business Expenses 1,350 Cash Outflow Sale of Lubbock Home 63,405 Cash Inflow Power Station, Inc. Stock Dividend $480 Cash Inflow Money Market Mutual Fund Dividend 68 Cash Inflow Jerry's Growth Mutual Fund Dividend 100 Cash Inflow Apartment Building Rental Income $11,000 Cash Inflow Jerry's University Salary $90,000 Cash Inflow Jerry's Wizard Research Associates Net Income 48,000 Cash Inflow Cassandra's Hospital Salary 45,000 Cash Inflow Cassandra's Trust Income $5,000 Cash Inflow Interest Income 110 Cash Inflow Cassandra's Municipal Bond Fund Coupon 175 Cash Inflow Jerry's U.S. Treasury Note Interest $2,250 Cash Inflow Mortgage Balance (Personal Residence) $280,476 Liability Mortgage Balance (Land) 21,933 Liability Mortgage Balance (Apartment) 60,282 Liability Auto Loan Balance $15,693 Liability Jerry's Employer's Matching Annuity 7,200 Savings Education Fund 11242 Asset
- 32. Net Worth Statement - Jerry & Cassandra Williams As of August 2012 % of Total Assets Amount Assets Liquid Assets Checking Account Balance $7,000 0.62% Savings Account Balance 15,000 35,000 1.33% Money Market Mutual Fund Balance 20,000 emer. Fund 1.77% Subtotal Liquid Assets 42,000 3.72% Investment Assets Jerry's Growth Mutual Fund 5,750 0.51% Cassandra's Municipal Bond Fund 7,000 0.62% Power Station, Inc. Stock 8,000 Begin edu. 0.71% Education Fund (Charles 529 Plan) 14,795 fund with 1.31% Jerry's Whole Life Insurance Cash Value 5,500 extra cash 0.49% Jerry's Universal Life Insurance Cash Value 3,000 0.27% Jerry's Treasury Note Current Market Value 147,837 13.10% Jerry's Apartment Building 125,000 11.08% Wizard Research Associates Ownership (1/4 interest) 250,000 22.16% Subtotal Investment Assets 566,882 50.24% Retirement Assets Cassandra's IRA Accounts 17,000 1.51% Cassandra's Defined Contribution Retirement Plan 35,000 3.10% Subtotal Retirement Assets 52,000 4.61% Personal Use Assets Personal Residence 360,000 new 31.90% Automobile #1 Value 25,000 2.22% Automobile #2 Value 17,500 1.55% Land near Ruidoso 65,000 5.76% Subtotal Personal Use Assets 467,500 41.43% Total Assets 1,128,382 100.00% % of Total Liabilities Amount Liabilities Short-Term Liabilities 0 No CC debt Subtotal Short-Term Liabilities 0 0.00% Long-Term Liabilities Personal Residence Mortgage Balance 280,476 new 74.12% Land near Ruidoso Mortgage Balance 21,933 5.80% Apartment Mortgage Balance 60,282 15.93% Auto Loan Balance (1st Car) 15,693 4.15% Subtotal Long-Term Liabilities 378,384 100.00% Total Liabilities 378,384 100.00% Net Worth $749,998
- 33. Statement of Cash Flows Jerry and Cassandra Williams December 31, 2012 This is a statement of all of your cash inflows and outflows projected after you buy a new home, ending on December 31, 2012. Since your cash inflows exceed your cash outflows the amount of available cash flows is positive. Thus, you can invest, save, or spend these funds. I suggest putting these funds in some type of planned investment or using them to accomplish another goal you might have. Have you thought about possibly starting an education fund? Or maybe start preparing funds to build your vacation home in Ruidoso? One contribution to this positive cash flow is your goal to reduce unnecessary expenses. This sacrifice will bring us the much needed funds to accomplish future goals. (Keep in mind some expenses may change such as utilities, gasoline cosumption, furniture, moving costs, and the newly proposed planned investment idea) Cash Inflows Employment $183,000 Other Inflows 154,804 Total Cash Inflows 337,804 Cash Outflows Payroll Taxes (72,524) Planned Savings and Investments (10,383) Personal Residence (133,907) Land near Ruidoso (3,547) Apartment Building (8,062) Auto (17,500) Living Expenses (44,978) Other Outflows (43,350) Total Cash Outflows (334,251) Available Cash Flows $3,553 Cash Outflows for 2012 Auto Living Expenses Other Outflows -5% -12% -13% Apartment Building Payroll Taxes -2% -22% Land near Ruidoso -1% Personal Planned Savings Residence and Investments -40% -3%
- 34. Statement of Net Worth Jerry and Cassandra Williams August-12 This is a statement showing all of your assets and liabilities as of August 2012. I have forecasted that you sell your old house and buy your new home in 2012. I assumed you would wait until the summer to move to Rnasom Canyon considering the children's school semester. Thus, I estimated you would buy the house in June, and start paying off the new mortgage (meaning three mortgage payments: June, July, August). In 2011 when you should sell the condo, the newly acquired funds can be allocated towards paying off your credit card debt. As you can see this statement shows a zero balance for short-term liabilities, which means there is no credit card debt. Your net worth is the number of assets minus the liabilities amount. You have a positive net worth of $746,625. Assets Liquid Assets $42,000 Investment Assets 566,882 Retirement Assets 52,000 Personal Use Assets 467,500 Total Assets 1,128,382 Liabilities Short-term Liabilities 0 Long-term Liabilities 378,384 Total Liabilities 378,384 Net Worth $749,998 Total Assets Personal Use Liquid Assets Assets 4% 41% Retirement Assets 5% Investment Assets 50%
- 35. Jerry & Cassandra Williams' Personal Data Line Item Amount Monthly Personal Residence $360,000 $ - Checking Account Balance 7,000 Savings Account Balance 15,000 Money Market Mutual Funds 20,000 Jerry's Growth Mutual Fund 5,750 Cassandra's Municipal Bond Fund 7,000 Power Station, Inc. Stock 8,000 Land near Ruidoso 65,000 Jerry's Apartment Building 125,000 Automobile #1 Value 25,000 Automobile #2 Value 17,500 Wizard Research Associates Ownership (1/4 interest) 250,000 Cassandra's Trust Value 100,000 Jerry's Whole Life Insurance Cash Value 5,500 Cassandra's IRA Accounts 17,000 Cassandra's Defined Contribution Retirement Plan Value 35,000 Jerry's Universal Life Insurance Cash Value 3,000 Jerry's Treasury Note Current Market Value 147,837 Closing Costs (Lubbock Home) 21,000 Closing Costs (Ransom Canyon Home) 5,641 Mortgage Downpayment (Personal Residence) 72,000 Home Owner's Association Fee (Personal Residence) 120 Mortgage P&I Payment (Personal Residence) 30,096 2,508 Property Tax (Personal Residence) 10,150 Mortgage P&I Payment (Land) 2,847 237 Property Tax (Land) 700 Mortgage P&I Payment (Apartment) 4,187 349 Auto Loan Payments (1st Car) 9,960 830 Child Support Payments (Jerry) 12,000 1,000 Jerry's Whole Life Insurance Premium Payments 2,000 Apartment Taxes 2,500 Apartment Maintenance 500 Charity Contributions 2,000 Jerry's University Annuity (Contribution) 7,200 Group Medical Insurance (Payroll Deduction) 4,200 350 Jerry's Universal Life Insurance Premium 800 Property & Liability Insurance Premium (Per. Residence) 1,800 Auto Insurance Premium (Both Cars) 1,300 (semi-annual) Reinvested Investment Income 3,183 FICA (Jerry's Salary) 6,885 FICA (Jerry's Business Income) 3,475 FICA (Cassandra's Salary) 3,443 FIT 58,721 Property & Liability Insurance Premium (Apartment) 875
- 36. Out-of-Pocket Medical Expenses 1,525 Vacations 4,700 Personal Care 1500 125 Food 16620 1,385 Furniture, Appliance, Housing 4680 390 Child Care 6000 500 Entertainment 4740 395 Clothing 6000 500 Auto Maintenance 2100 175 Gasoline 4140 345 Utilities, including cable and internet 9420 785 Football and Basketball Tickets 5000 Miscellaneous 1800 150 Unreimbursed Business Expenses 1,350 Sale of Lubbock Home 63,405 Power Station, Inc. Stock Dividend 480 Money Market Mutual Fund Dividend 68 Jerry's Growth Mutual Fund Dividend 100 Apartment Building Rental Income 11,000 Jerry's University Salary 90,000 Jerry's Wizard Research Associates Net Income 48,000 Cassandra's Hospital Salary 45,000 Cassandra's Trust Income 5,000 Interest Income 110 Cassandra's Municipal Bond Fund Coupon 175 Jerry's U.S. Treasury Note Interest 2,250 Mortgage Balance (Personal Residence) 280,476 Mortgage Balance (Land) 21,933 Mortgage Balance (Apartment) 60,282 Auto Loan Balance (1st Car) 15,693 Jerry's Employer's Matching Annuity 7,200
- 37. Classification Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow
- 38. Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Outflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Cash Inflow Liability Liability Liability Liability Savings