Jerry & Cassandra Williams Personal DataLine Item                                                     Monthly            A...
Vacations                                                 4,700Personal Care                                     125      ...
Classification              Asset              Asset              Asset              Asset              Asset             ...
Cash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCa...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Out-of-Pocket Medical Expenses                    $1,525   Cash OutflowVacations                                         $...
Cash Flow Statement - Jerry & Cassandra Williams                               Year Ending December 31, 2010              ...
Apartment Building       Mortgage P&I Payment                                   4,188               1.97%       Apartment ...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Out-of-Pocket Medical Expenses                    $1,525   Cash OutflowVacations                                         $...
Net Worth Statement - Jerry & Cassandra Williams                                 As of September 24, 2011                 ...
Ratio Analysis - Jerry & Cassandra Williams                                                                              T...
after-tax income            ≥ 45 % danger-point   total debt      48.38%         varies   net worthlong-term debt     47.4...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Out-of-Pocket Medical Expenses                    $1,525   Cash OutflowVacations                                         $...
Cash Flow Statement - Jerry & Cassandra Williams                               Year Ending December 31, 2011              ...
Apartment Building       Mortgage P&I Payment                                   4,188               2.13%       Apartment ...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Out-of-Pocket Medical Expenses                    $1,525   Cash OutflowVacations                                         $...
Net Worth Statement - Jerry & Cassandra Williams                                   As of October 6, 2011                  ...
Ratio Analysis - Jerry & Cassandra Williams    (after recommendations)                                                    ...
after-tax income            ≥ 45 % danger-point   total debt      48.06%         varies   net worthlong-term debt     47.1...
d, but still need to tryexpenses/save more tohe goal of 3 months   Good be very hard in theiration to satisfy this they pa...
Statement of Cash Flows                          Jerry and Cassandra Williams                                   December 3...
Statement of Net Worth                           Jerry and Cassandra Williams                                     Septembe...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Property & Liability Insurance Premium (Apartment)       875   Cash OutflowOut-of-Pocket Medical Expenses                 ...
Cash Flow Statement - Jerry & Cassandra Williams                                 Year Ending December 31, 2012            ...
Subtotal Personal Residence             133,907             40.06%   Land near Ruidoso       Mortgage P&I Payment         ...
Jerry & Cassandra Williams Personal DataLine Item                                                     Amount        Classi...
Property & Liability Insurance Premium (Apartment)        875   Cash OutflowOut-of-Pocket Medical Expenses                ...
Net Worth Statement - Jerry & Cassandra Williams                                       As of August 2012                  ...
Statement of Cash Flows                           Jerry and Cassandra Williams                                   December ...
Statement of Net Worth                          Jerry and Cassandra Williams                                         Augus...
Jerry & Cassandra Williams Personal DataLine Item                                                 Amount       MonthlyPers...
Out-of-Pocket Medical Expenses                    1,525Vacations                                         4,700Personal Car...
Classification           Asset           Asset           Asset           Asset           Asset           Asset           A...
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
Education Funding
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Education Funding

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Education Funding

  1. 1. Jerry & Cassandra Williams Personal DataLine Item Monthly AmountPersonal Residence $ - $350,000Checking Account Balance 7,000Savings Account Balance 15,000Money Market Mutual Funds 12,000Jerrys Growth Mutual Fund 5,750Cassandras Municipal Bond Fund 7,000Power Station, Inc. Stock 8,000Jerrys Florida Condo Inheritance 110,000Land near Ruidoso 65,000Jerrys Apartment Building 125,000Auto #1 25,000Auto #2 17,500Wizard Research Associates 250,000Cassandras Trust Value 100,000Jerrys Whole Life Insurance Cash Value 5,500Cassandras IRA Accounts 17,000Cassandras Defined Contribution Retirement Plan Value 35,000Jerrys Universal Life Insurance Cash Value 3,000Jerrys Treasury Note Current Market Value 147,837Mortgage P&I Payment (Personal Residence) 1,520 18,241Property Tax (Personal Residence) 7,800Property Tax (Florida Condo) 1,000Mortgage P&I Payment (Land) 237 2,847Property Tax (Land) 700Mortgage P&I Payment (Apartment) 349 4,188Auto Loan Payments 830 9,960Child Support Payments (Jerry) 1,000 12,000Jerrys Whole Life Insurance Premium Payments 2,000Apartment Taxes 2,500Apartment Maintenance 500Charity Contributions 2,000Jerrys University Annuity (Contribution) 7,200Group Medical Insurance (Payroll Deduction) 350 4,200Jerrys Universal Life Insurance Premium 800Property & Liability Insurance Premium (Personal Residence) 1,800Auto Insurance Premium (Both Cars) (semi-annual) 2,600Reinvested Investment Income 3,183FICA (Jerrys Salary) 6,885FICA (Jerrys Business Income) 3,475FICA (Cassandras Salary) 3,443FIT 36,393Money Market Mutual Fund (Contribution) 500 6,000Property & Liability Insurance Premium (Apartment) 875Out-of-Pocket Medical Expenses 1,525
  2. 2. Vacations 4,700Personal Care 125 1500Food 1,385 16620Furniture, Appliance, Housing 390 4680Child Care 500 6000Entertainment 395 4740Clothing 500 6000Auto Maintenance 175 2100Gasoline 345 4140Utilities, including cable and internet 785 9420Credit Card P&I Payment 392 4704Football and Basketball Tickets 5000Miscellaneous 150 1800Unreimbursed Business Expenses 1,350Power Station, Inc. Stock Dividend 480Money Market Mutual Fund Dividend 68Jerrys Growth Mutual Fund Dividend 100Apartment Building Rental Income 11,000Jerrys University Salary 90,000Jerrys Wizard Research Associates Net Income 48,000Cassandras Hospital Salary 45,000Cassandras Trust Income 5,000Interest Income 110Cassandras Municipal Bond Fund Coupon 175Jerrys U.S. Treasury Note Interest 2,250Mortgage Balance (Personal Residence) 286,595Mortgage Balance (Land) 21,933Mortgage Balance (Apartment) 60,282Auto Loan Balance 16,434Credit Card Debt Balance 7,843Jerrys Employers Matching Annuity 7,200
  3. 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. 4. Cash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash OutflowCash 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. 5. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $350,000 AssetChecking Account Balance $7,000 AssetSavings Account Balance $15,000 AssetMoney Market Mutual Funds $12,000 AssetJerrys Growth Mutual Fund $5,750 AssetCassandras Municipal Bond Fund $7,000 AssetPower Station, Inc. Stock $8,000 AssetJerrys Florida Condo Inheritance $110,000 AssetLand near Ruidoso $65,000 AssetJerrys Apartment Building $125,000 AssetAuto #1 $25,000 AssetAuto #2 $17,500 AssetWizard Research Associates $250,000 AssetCassandras Trust Value $100,000 AssetJerrys Whole Life Insurance Cash Value $5,500 AssetCassandras IRA Accounts $17,000 AssetCassandras Defined Contribution Retirement Plan Value $35,000 AssetJerrys Universal Life Insurance Cash Value $3,000 AssetJerrys Treasury Note Current Market Value $147,837 AssetMortgage P&I Payment (Personal Residence) $18,241 Cash OutflowProperty Tax (Personal Residence) $7,800 Cash OutflowProperty Tax (Florida Condo) $1,000 Cash OutflowMortgage P&I Payment (Land) $2,847 Cash OutflowProperty Tax (Land) $700 Cash OutflowMortgage P&I Payment (Apartment) $4,188 Cash OutflowAuto Loan Payments $9,960 Cash OutflowChild Support Payments (Jerry) $12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments $2,000 Cash OutflowApartment Taxes $2,500 Cash OutflowApartment Maintenance $500 Cash OutflowCharity Contributions $2,000 Cash OutflowJerrys University Annuity (Contribution) $7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) $4,200 Cash OutflowJerrys Universal Life Insurance Premium $800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) $1,800 Cash OutflowAuto Insurance Premium $2,600 Cash OutflowReinvested Investment Income $3,183 Cash OutflowFICA (Jerrys Salary) $6,885 Cash OutflowFICA (Jerrys Business Income) $3,475 Cash OutflowFICA (Cassandras Salary) $3,443 Cash OutflowFIT $36,393 Cash OutflowMoney Market Mutual Fund (Contribution) $6,000 Cash OutflowProperty & Liability Insurance Premium (Apartment) $875 Cash Outflow
  6. 6. Out-of-Pocket Medical Expenses $1,525 Cash OutflowVacations $4,700 Cash OutflowPersonal Care $1,500 Cash OutflowFood $16,620 Cash OutflowFurniture, Appliance, Housing $4,680 Cash OutflowChild Care $6,000 Cash OutflowEntertainment $4,740 Cash OutflowClothing $6,000 Cash OutflowAuto Maintenance $2,100 Cash OutflowGasoline $4,140 Cash OutflowUtilities, including cable and internet $9,420 Cash OutflowCredit Card P&I Payment $4,704 Cash OutflowFootball and Basketball Tickets $5,000 Cash OutflowMiscellaneous $1,800 Cash OutflowUnreimbursed Business Expenses $1,350 Cash OutflowPower Station, Inc. Stock Dividend $480 Cash InflowMoney Market Mutual Fund Dividend $68 Cash InflowJerrys Growth Mutual Fund Dividend $100 Cash InflowApartment Building Rental Income $11,000 Cash InflowJerrys University Salary $90,000 Cash InflowJerrys Wizard Research Associates Net Income $48,000 Cash InflowCassandras Hospital Salary $45,000 Cash InflowCassandras Trust Income $5,000 Cash InflowInterest Income $110 Cash InflowCassandras Municipal Bond Fund Coupon $175 Cash InflowJerrys U.S. Treasury Note Interest $2,250 Cash InflowMortgage Balance (Personal Residence) $286,595 LiabilityMortgage Balance (Land) $21,933 LiabilityMortgage Balance (Apartment) $60,282 LiabilityAuto Loan Balance $16,434 LiabilityCredit Card Debt Balance $7,843 LiabilityJerrys Employers Matching Annuity $7,200 Savings Unidentified Cash
  7. 7. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2010 % of TotalCash Inflow Amount Inflow Employment Jerrys University Salary $90,000 44.51% Jerrys Wizard Research Associates Net Income 48,000 23.74% Cassandras Hospital Salary 45,000 22.26% Total Employment 183,000 90.51% Other Inflows Apartment Building Rental Income 11,000 5.44% Cassandras Trust Income 5,000 2.47% Cassandras Municipal Bond Fund Coupon 175 0.09% Jerrys 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% Jerrys 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 TotalCash Outflow Amount Outflow Payroll Taxes FIT 34,309 16.12% FICA (Jerrys Salary) 6,885 3.24% FICA (Jerrys Business Income) 3,475 1.63% FICA (Cassandras Salary) 3,443 1.62% Total Payroll Taxes 48,112 22.61% Planned Savings and Investments Reinvested Investment Income 3,183 1.50% Jerrys 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. 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 Jerrys Whole Life Insurance Premium Payments 2,000 0.94% Group Medical Insurance (Payroll Deduction) 4,200 1.97% Jerrys 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. 9. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $350,000 AssetChecking Account Balance $7,000 AssetSavings Account Balance $15,000 AssetMoney Market Mutual Funds $12,000 AssetJerrys Growth Mutual Fund $5,750 AssetCassandras Municipal Bond Fund $7,000 AssetPower Station, Inc. Stock $8,000 AssetJerrys Florida Condo Inheritance $110,000 AssetLand near Ruidoso $65,000 AssetJerrys Apartment Building $125,000 AssetAuto #1 $25,000 AssetAuto #2 $17,500 AssetWizard Research Associates $250,000 AssetCassandras Trust Value $100,000 AssetJerrys Whole Life Insurance Cash Value $5,500 AssetCassandras IRA Accounts $17,000 AssetCassandras Defined Contribution Retirement Plan Value $35,000 AssetJerrys Universal Life Insurance Cash Value $3,000 AssetJerrys Treasury Note Current Market Value $147,837 AssetMortgage P&I Payment (Personal Residence) $18,241 Cash OutflowProperty Tax (Personal Residence) $7,800 Cash OutflowProperty Tax (Florida Condo) $1,000 Cash OutflowMortgage P&I Payment (Land) $2,847 Cash OutflowProperty Tax (Land) $700 Cash OutflowMortgage P&I Payment (Apartment) $4,188 Cash OutflowAuto Loan Payments $9,960 Cash OutflowChild Support Payments (Jerry) $12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments $2,000 Cash OutflowApartment Taxes $2,500 Cash OutflowApartment Maintenance $500 Cash OutflowCharity Contributions $2,000 Cash OutflowJerrys University Annuity (Contribution) $7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) $4,200 Cash OutflowJerrys Universal Life Insurance Premium $800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) $1,800 Cash OutflowAuto Insurance Premium $2,600 Cash OutflowReinvested Investment Income $3,183 Cash OutflowFICA (Jerrys Salary) $6,885 Cash OutflowFICA (Jerrys Business Income) $3,475 Cash OutflowFICA (Cassandras Salary) $3,443 Cash OutflowFIT $36,393 Cash OutflowMoney Market Mutual Fund (Contribution) $6,000 Cash OutflowProperty & Liability Insurance Premium (Apartment) $875 Cash Outflow
  10. 10. Out-of-Pocket Medical Expenses $1,525 Cash OutflowVacations $4,700 Cash OutflowPersonal Care $1,500 Cash OutflowFood $16,620 Cash OutflowFurniture, Appliance, Housing $4,680 Cash OutflowChild Care $6,000 Cash OutflowEntertainment $4,740 Cash OutflowClothing $6,000 Cash OutflowAuto Maintenance $2,100 Cash OutflowGasoline $4,140 Cash OutflowUtilities, including cable and internet $9,420 Cash OutflowCredit Card P&I Payment $4,704 Cash OutflowFootball and Basketball Tickets $5,000 Cash OutflowMiscellaneous $1,800 Cash OutflowUnreimbursed Business Expenses $1,350 Cash OutflowPower Station, Inc. Stock Dividend $480 Cash InflowMoney Market Mutual Fund Dividend $68 Cash InflowJerrys Growth Mutual Fund Dividend $100 Cash InflowApartment Building Rental Income $11,000 Cash InflowJerrys University Salary $90,000 Cash InflowJerrys Wizard Research Associates Net Income $48,000 Cash InflowCassandras Hospital Salary $45,000 Cash InflowCassandras Trust Income $5,000 Cash InflowInterest Income $110 Cash InflowCassandras Municipal Bond Fund Coupon $175 Cash InflowJerrys U.S. Treasury Note Interest $2,250 Cash InflowMortgage Balance (Personal Residence) $286,595 LiabilityMortgage Balance (Land) $21,933 LiabilityMortgage Balance (Apartment) $60,282 LiabilityAuto Loan Balance $16,434 LiabilityCredit Card Balance $7,843 LiabilityJerrys Employers Matching Annuity $7,200 Savings
  11. 11. Net Worth Statement - Jerry & Cassandra Williams As of September 24, 2011 % of TotalAssets 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 Jerrys Growth Mutual Fund 5,750 0.48% Cassandras Municipal Bond Fund 7,000 0.58% Power Station, Inc. Stock 8,000 0.66% Jerrys Whole Life Insurance Cash Value 5,500 0.46% Jerrys Universal Life Insurance Cash Value 3,000 0.25% Jerrys Treasury Note Current Market Value 147,837 12.26% Jerrys Florida Condo Inheritance 110,000 9.12% Jerrys Apartment Building 125,000 10.37% Wizard Research Associates Ownership 250,000 20.74% Total Investment Assets 662,087 54.92% Retirement Assets Cassandras IRA Accounts 17,000 1.41% Cassandras 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 TotalLiabilities 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. 12. Ratio Analysis - Jerry & Cassandra Williams Target AnalysisLiquidity 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 GoodSavings 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 worthTax Burden payroll taxes 23.80% ≤ 30% Good gross income payroll + property taxes 29.73% ≤ 35% Good gross incomeHousing Expense homeowners expenses 20.74% ≤ 35% Great gross incomeDebt 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. 13. after-tax income ≥ 45 % danger-point total debt 48.38% varies net worthlong-term debt 47.41% varies net worth total debt 32.61% varies total assetslong-term debt 31.95% varies total assets
  14. 14. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $350,000 AssetChecking Account Balance $7,000 AssetSavings Account Balance $15,000 AssetMoney Market Mutual Funds $12,000 AssetJerrys Growth Mutual Fund $5,750 AssetCassandras Municipal Bond Fund $7,000 AssetPower Station, Inc. Stock $8,000 AssetJerrys Florida Condo Inheritance $110,000 AssetLand near Ruidoso $65,000 AssetJerrys Apartment Building $125,000 AssetAuto #1 $25,000 AssetAuto #2 $17,500 AssetWizard Research Associates $250,000 AssetCassandras Trust Value $100,000 AssetJerrys Whole Life Insurance Cash Value $5,500 AssetCassandras IRA Accounts $17,000 AssetCassandras Defined Contribution Retirement Plan Value $35,000 AssetJerrys Universal Life Insurance Cash Value $3,000 AssetJerrys Treasury Note Current Market Value $147,837 AssetMortgage P&I Payment (Personal Residence) $18,241 Cash OutflowProperty Tax (Personal Residence) $7,800 Cash OutflowProperty Tax (Florida Condo) $1,000 Cash OutflowMortgage P&I Payment (Land) $2,847 Cash OutflowProperty Tax (Land) $700 Cash OutflowMortgage P&I Payment (Apartment) $4,188 Cash OutflowAuto Loan Payments $9,960 Cash OutflowChild Support Payments (Jerry) $12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments $2,000 Cash OutflowApartment Taxes $2,500 Cash OutflowApartment Maintenance $500 Cash OutflowCharity Contributions $2,000 Cash OutflowJerrys University Annuity (Contribution) $7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) $4,200 Cash OutflowJerrys Universal Life Insurance Premium $800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) $1,800 Cash OutflowAuto Insurance Premium $2,600 Cash OutflowReinvested Investment Income $3,183 Cash OutflowFICA (Jerrys Salary) $6,885 Cash OutflowFICA (Jerrys Business Income) $3,475 Cash OutflowFICA (Cassandras Salary) $3,443 Cash OutflowFIT $36,393 Cash OutflowMoney Market Mutual Fund (Contribution) $6,000 Cash OutflowProperty & Liability Insurance Premium (Apartment) $875 Cash Outflow
  15. 15. Out-of-Pocket Medical Expenses $1,525 Cash OutflowVacations $4,700 Cash OutflowPersonal Care $1,500 Cash OutflowFood $16,620 Cash OutflowFurniture, Appliance, Housing $4,680 Cash OutflowChild Care $6,000 Cash OutflowEntertainment $4,740 Cash OutflowClothing $6,000 Cash OutflowAuto Maintenance $2,100 Cash OutflowGasoline $4,140 Cash OutflowUtilities, including cable and internet $9,420 Cash OutflowCredit Card P&I Payment $4,704 Cash OutflowFootball and Basketball Tickets $5,000 Cash OutflowMiscellaneous $1,800 Cash OutflowUnreimbursed Business Expenses $1,350 Cash OutflowPower Station, Inc. Stock Dividend $480 Cash InflowMoney Market Mutual Fund Dividend $68 Cash InflowJerrys Growth Mutual Fund Dividend $100 Cash InflowApartment Building Rental Income $11,000 Cash InflowJerrys University Salary $90,000 Cash InflowJerrys Wizard Research Associates Net Income $48,000 Cash InflowCassandras Hospital Salary $45,000 Cash InflowCassandras Trust Income $5,000 Cash InflowInterest Income $110 Cash InflowCassandras Municipal Bond Fund Coupon $175 Cash InflowJerrys U.S. Treasury Note Interest $2,250 Cash InflowMortgage Balance (Personal Residence) $286,595 LiabilityMortgage Balance (Land) $21,933 LiabilityMortgage Balance (Apartment) $60,282 LiabilityAuto Loan Balance $16,434 LiabilityCredit Card Debt Balance $7,843 LiabilityJerrys Employers Matching Annuity $7,200 Savings Unidentified Cash
  16. 16. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2011 % of TotalCash Inflow Amount Inflow Employment Jerrys University Salary $90,000 44.51% Jerrys Wizard Research Associates Net Income 48,000 23.74% Cassandras Hospital Salary 45,000 22.26% Total Employment 183,000 90.51% Other Inflows Apartment Building Rental Income 11,000 5.44% Cassandras Trust Income 5,000 2.47% Cassandras Municipal Bond Fund Coupon 175 0.09% Jerrys 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% Jerrys 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 TotalCash Outflow Amount Outflow Payroll Taxes FIT 34,309 17.43% FICA (Jerrys Salary) 6,885 3.50% FICA (Jerrys Business Income) 3,475 1.77% FICA (Cassandras Salary) 3,443 1.75% Total Payroll Taxes 48,112 24.44% Planned Savings and Investments Reinvested Investment Income 3,183 1.62% Jerrys 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. 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 Jerrys Whole Life Insurance Premium Payments 2,000 1.02% Group Medical Insurance (Payroll Deduction) 4,200 2.13% Jerrys 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. 18. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $350,000 AssetChecking Account Balance $7,000 AssetSavings Account Balance $15,000 AssetMoney Market Mutual Funds $12,000 AssetJerrys Growth Mutual Fund $5,750 AssetCassandras Municipal Bond Fund $7,000 AssetPower Station, Inc. Stock $8,000 AssetJerrys Florida Condo Inheritance $110,000 AssetLand near Ruidoso $65,000 AssetJerrys Apartment Building $125,000 AssetAuto #1 $25,000 AssetAuto #2 $17,500 AssetWizard Research Associates $250,000 AssetCassandras Trust Value $100,000 AssetJerrys Whole Life Insurance Cash Value $5,500 AssetCassandras IRA Accounts $17,000 AssetCassandras Defined Contribution Retirement Plan Value $35,000 AssetJerrys Universal Life Insurance Cash Value $3,000 AssetJerrys Treasury Note Current Market Value $147,837 AssetMortgage P&I Payment (Personal Residence) $18,241 Cash OutflowProperty Tax (Personal Residence) $7,800 Cash OutflowProperty Tax (Florida Condo) $1,000 Cash OutflowMortgage P&I Payment (Land) $2,847 Cash OutflowProperty Tax (Land) $700 Cash OutflowMortgage P&I Payment (Apartment) $4,188 Cash OutflowAuto Loan Payments $9,960 Cash OutflowChild Support Payments (Jerry) $12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments $2,000 Cash OutflowApartment Taxes $2,500 Cash OutflowApartment Maintenance $500 Cash OutflowCharity Contributions $2,000 Cash OutflowJerrys University Annuity (Contribution) $7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) $4,200 Cash OutflowJerrys Universal Life Insurance Premium $800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) $1,800 Cash OutflowAuto Insurance Premium $2,600 Cash OutflowReinvested Investment Income $3,183 Cash OutflowFICA (Jerrys Salary) $6,885 Cash OutflowFICA (Jerrys Business Income) $3,475 Cash OutflowFICA (Cassandras Salary) $3,443 Cash OutflowFIT $36,393 Cash OutflowMoney Market Mutual Fund (Contribution) $6,000 Cash OutflowProperty & Liability Insurance Premium (Apartment) $875 Cash Outflow
  19. 19. Out-of-Pocket Medical Expenses $1,525 Cash OutflowVacations $4,700 Cash OutflowPersonal Care $1,500 Cash OutflowFood $16,620 Cash OutflowFurniture, Appliance, Housing $4,680 Cash OutflowChild Care $6,000 Cash OutflowEntertainment $4,740 Cash OutflowClothing $6,000 Cash OutflowAuto Maintenance $2,100 Cash OutflowGasoline $4,140 Cash OutflowUtilities, including cable and internet $9,420 Cash OutflowCredit Card P&I Payment $4,704 Cash OutflowFootball and Basketball Tickets $5,000 Cash OutflowMiscellaneous $1,800 Cash OutflowUnreimbursed Business Expenses $1,350 Cash OutflowPower Station, Inc. Stock Dividend $480 Cash InflowMoney Market Mutual Fund Dividend $68 Cash InflowJerrys Growth Mutual Fund Dividend $100 Cash InflowApartment Building Rental Income $11,000 Cash InflowJerrys University Salary $90,000 Cash InflowJerrys Wizard Research Associates Net Income $48,000 Cash InflowCassandras Hospital Salary $45,000 Cash InflowCassandras Trust Income $5,000 Cash InflowInterest Income $110 Cash InflowCassandras Municipal Bond Fund Coupon $175 Cash InflowJerrys U.S. Treasury Note Interest $2,250 Cash InflowMortgage Balance (Personal Residence) $286,595 LiabilityMortgage Balance (Land) $21,933 LiabilityMortgage Balance (Apartment) $60,282 LiabilityAuto Loan Balance $16,434 LiabilityCredit Card Balance $7,843 LiabilityJerrys Employers Matching Annuity $7,200 Savings
  20. 20. Net Worth Statement - Jerry & Cassandra Williams As of October 6, 2011 % of TotalAssets 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 Jerrys Growth Mutual Fund 5,750 0.47% Cassandras Municipal Bond Fund 7,000 0.58% Power Station, Inc. Stock 8,000 0.66% Jerrys Whole Life Insurance Cash Value 5,500 0.45% Jerrys Universal Life Insurance Cash Value 3,000 0.25% Jerrys Treasury Note Current Market Value 147,837 12.21% Jerrys Florida Condo Inheritance 110,000 9.08% Jerrys Apartment Building 125,000 10.32% Wizard Research Associates Ownership 250,000 20.65% Total Investment Assets 662,087 54.68% Retirement Assets Cassandras IRA Accounts 17,000 1.40% Cassandras 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 TotalLiabilities 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. 21. Ratio Analysis - Jerry & Cassandra Williams (after recommendations) Target AnalysisLiquidity 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 GoodSavings savings 5.14% ≥ 10 % Good gross income It would be very hard in theirAsset 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 GreatTax Burden payroll taxes 23.80% ≤ 30% Good gross income payroll + property taxes 29.73% ≤ 35% Good gross incomeHousing Expense homeowners expenses 20.74% ≤ 35% Great gross incomeDebt 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. 22. after-tax income ≥ 45 % danger-point total debt 48.06% varies net worthlong-term debt 47.10% varies net worth total debt 32.46% varies total assetslong-term debt 31.81% varies total assets
  23. 23. d, but still need to tryexpenses/save more tohe goal of 3 months Good be very hard in theiration to satisfy this they pay off some ofCC) it will improve.Watch closely
  24. 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, endingon December 31, 2010. Since your cash outflows exceeded your cash inflows the amountof available cash flows is negative. In order to be ensure stability and enable futurespending we need to increase this number next year. I believe the best way to reducecash outflows is to cut back on unnecessary spending. This is discussed later on therecommendations 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. 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 apositive 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. 26. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $360,000 AssetChecking Account Balance 7,000 AssetSavings Account Balance 15,000 AssetMoney Market Mutual Funds 20,000 AssetJerrys Growth Mutual Fund 5,750 AssetCassandras Municipal Bond Fund 7,000 AssetPower Station, Inc. Stock 8,000 AssetLand near Ruidoso 65,000 AssetJerrys Apartment Building 125,000 AssetAuto #1 25,000 AssetAuto #2 17,500 AssetWizard Research Associates 250,000 AssetCassandras Trust Value 100,000 AssetJerrys Whole Life Insurance Cash Value 5,500 AssetCassandras IRA Accounts 17,000 AssetCassandras Defined Contribution Retirement Plan Value 35,000 AssetJerrys Universal Life Insurance Cash Value 3,000 AssetJerrys Treasury Note Current Market Value 147,837 AssetClosing Costs (Lubbock Home) 21,000 Cash OutflowClosing Costs (Ransom Canyon Home) 5,641 Cash OutflowMortgage Downpayment (Personal Residence) 72,000 Cash OutflowHome Owners Association Fee (Personal Residence) 120 Cash OutflowMortgage P&I Payment (Personal Residence) 30,096 Cash OutflowProperty Tax (Personal Residence) 10,150 Cash OutflowMortgage P&I Payment (Land) 2,847 Cash OutflowProperty Tax (Land) 700 Cash OutflowMortgage P&I Payment (Apartment) 4,187 Cash OutflowAuto Loan Payments 9,960 Cash OutflowChild Support Payments (Jerry) 12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments 2,000 Cash OutflowApartment Taxes 2,500 Cash OutflowApartment Maintenance 500 Cash OutflowCharity Contributions 2,000 Cash OutflowJerrys University Annuity (Contribution) 7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) 4,200 Cash OutflowJerrys Universal Life Insurance Premium 800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) 1,800 Cash OutflowAuto Insurance Premium 1,300 Cash OutflowReinvested Investment Income 3,183 Cash OutflowFICA (Jerrys Salary) 6,885 Cash OutflowFICA (Jerrys Business Income) 3,475 Cash OutflowFICA (Cassandras Salary) 3,443 Cash OutflowFIT 58,721 Cash Outflow
  27. 27. Property & Liability Insurance Premium (Apartment) 875 Cash OutflowOut-of-Pocket Medical Expenses 1,525 Cash OutflowVacations 4,700 Cash OutflowPersonal Care 1,500 Cash OutflowFood 16,620 Cash OutflowFurniture, Appliance, Housing 4,680 Cash OutflowChild Care 6,000 Cash OutflowEntertainment 4,740 Cash OutflowClothing 6,000 Cash OutflowAuto Maintenance 2,100 Cash OutflowGasoline 4,140 Cash OutflowUtilities, including cable and internet 9,420 Cash OutflowFootball and Basketball Tickets 5,000 Cash OutflowMiscellaneous 1,800 Cash OutflowUnreimbursed Business Expenses 1,350 Cash OutflowSale of Lubbock Home 63,405 Cash InflowPower Station, Inc. Stock Dividend 480 Cash InflowMoney Market Mutual Fund Dividend 68 Cash InflowJerrys Growth Mutual Fund Dividend 100 Cash InflowApartment Building Rental Income 11,000 Cash InflowJerrys University Salary 90,000 Cash InflowJerrys Wizard Research Associates Net Income 48,000 Cash InflowCassandras Hospital Salary 45,000 Cash InflowCassandras Trust Income 5,000 Cash InflowInterest Income 110 Cash InflowCassandras Municipal Bond Fund Coupon 175 Cash InflowJerrys U.S. Treasury Note Interest 2,250 Cash InflowMortgage Balance (Personal Residence) 280,476 LiabilityMortgage Balance (Land) 21,933 LiabilityMortgage Balance (Apartment) 60,282 LiabilityAuto Loan Balance 15,693 LiabilityJerrys Employers Matching Annuity 7,200 SavingsCash from 6-month CD that matured 71857 Cash InflowInterest from 6-month CD (4 months in 2012) $359 Cash Inflow Charity Cont Unreimburse Total Cash Outflow Unidentified Cash
  28. 28. Cash Flow Statement - Jerry & Cassandra Williams Year Ending December 31, 2012 % of TotalCash Inflow Amount Inflow Employment Jerrys University Salary $90,000 26.64% Jerrys Wizard Research Associates Net Income 48,000 14.21% Cassandras 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% Cassandras 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% Jerrys 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% Jerrys 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 TotalCash Outflow Amount Outflow Payroll Taxes FIT (Joint) 58,721 higher due 17.57% FICA (Jerrys Salary) 6,885 to sale 2.06% FICA (Jerrys Business Income) 3,475 1.04% FICA (Cassandras Salary) 3,443 1.03% Subtotal Payroll Taxes 72,524 21.70% Planned Savings and Investments Reinvested Interest and Dividends 3,183 0.95% Jerrys 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 Owners 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. 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% Jerrys Whole Life Insurance Premium Payments 2,000 0.60% Group Medical Insurance (Payroll Deduction) 4,200 1.26% Jerrys 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. 30. Jerry & Cassandra Williams Personal DataLine Item Amount ClassificationPersonal Residence $360,000 AssetChecking Account Balance 7,000 AssetSavings Account Balance 15,000 AssetMoney Market Mutual Funds $20,000 AssetJerrys Growth Mutual Fund 5,750 AssetCassandras Municipal Bond Fund 7,000 AssetPower Station, Inc. Stock $8,000 AssetLand near Ruidoso $65,000 AssetJerrys Apartment Building 125,000 AssetAuto #1 25,000 AssetAuto #2 $17,500 AssetWizard Research Associates 250,000 AssetCassandras Trust Value 100,000 AssetJerrys Whole Life Insurance Cash Value $5,500 AssetCassandras IRA Accounts $17,000 AssetCassandras Defined Contribution Retirement Plan Value 35,000 AssetJerrys Universal Life Insurance Cash Value 3,000 AssetJerrys Treasury Note Current Market Value $147,837 AssetClosing Costs (Lubbock Home) 21,000 Cash OutflowClosing Costs (Ransom Canyon Home) 5,641 Cash OutflowMortgage Downpayment (Personal Residence) $72,000 Cash OutflowHome Owners Association Fee (Personal Residence) $120 Cash OutflowMortgage P&I Payment (Personal Residence) 30,096 Cash OutflowProperty Tax (Personal Residence) 10,150 Cash OutflowMortgage P&I Payment (Land) $2,847 Cash OutflowProperty Tax (Land) 700 Cash OutflowMortgage P&I Payment (Apartment) 4,187 Cash OutflowAuto Loan Payments $9,960 Cash OutflowChild Support Payments (Jerry) $12,000 Cash OutflowJerrys Whole Life Insurance Premium Payments 2,000 Cash OutflowApartment Taxes 2,500 Cash OutflowApartment Maintenance $500 Cash OutflowCharity Contributions 2,000 Cash OutflowJerrys University Annuity (Contribution) 7,200 Cash OutflowGroup Medical Insurance (Payroll Deduction) $4,200 Cash OutflowJerrys Universal Life Insurance Premium $800 Cash OutflowProperty & Liability Insurance Premium (Personal Residence) 1,800 Cash OutflowAuto Insurance Premium 1,300 Cash OutflowReinvested Investment Income $3,183 Cash OutflowFICA (Jerrys Salary) 6,885 Cash OutflowFICA (Jerrys Business Income) 3,475 Cash OutflowFICA (Cassandras Salary) $3,443 Cash OutflowFIT $58,721 Cash Outflow
  31. 31. Property & Liability Insurance Premium (Apartment) 875 Cash OutflowOut-of-Pocket Medical Expenses 1,525 Cash OutflowVacations $4,700 Cash OutflowPersonal Care 1,500 Cash OutflowFood 16,620 Cash OutflowFurniture, Appliance, Housing $4,680 Cash OutflowChild Care $6,000 Cash OutflowEntertainment 4,740 Cash OutflowClothing 6,000 Cash OutflowAuto Maintenance $2,100 Cash OutflowGasoline 4,140 Cash OutflowUtilities, including cable and internet 9,420 Cash OutflowFootball and Basketball Tickets $5,000 Cash OutflowMiscellaneous $1,800 Cash OutflowUnreimbursed Business Expenses 1,350 Cash OutflowSale of Lubbock Home 63,405 Cash InflowPower Station, Inc. Stock Dividend $480 Cash InflowMoney Market Mutual Fund Dividend 68 Cash InflowJerrys Growth Mutual Fund Dividend 100 Cash InflowApartment Building Rental Income $11,000 Cash InflowJerrys University Salary $90,000 Cash InflowJerrys Wizard Research Associates Net Income 48,000 Cash InflowCassandras Hospital Salary 45,000 Cash InflowCassandras Trust Income $5,000 Cash InflowInterest Income 110 Cash InflowCassandras Municipal Bond Fund Coupon 175 Cash InflowJerrys U.S. Treasury Note Interest $2,250 Cash InflowMortgage Balance (Personal Residence) $280,476 LiabilityMortgage Balance (Land) 21,933 LiabilityMortgage Balance (Apartment) 60,282 LiabilityAuto Loan Balance $15,693 LiabilityJerrys Employers Matching Annuity 7,200 SavingsEducation Fund 11242 Asset
  32. 32. Net Worth Statement - Jerry & Cassandra Williams As of August 2012 % of TotalAssets 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 Jerrys Growth Mutual Fund 5,750 0.51% Cassandras 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% Jerrys Whole Life Insurance Cash Value 5,500 extra cash 0.49% Jerrys Universal Life Insurance Cash Value 3,000 0.27% Jerrys Treasury Note Current Market Value 147,837 13.10% Jerrys 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 Cassandras IRA Accounts 17,000 1.51% Cassandras 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 TotalLiabilities 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. 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 buya new home, ending on December 31, 2012. Since your cash inflows exceed your cashoutflows the amount of available cash flows is positive. Thus, you can invest, save, orspend 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 aboutpossibly starting an education fund? Or maybe start preparing funds to build yourvacation home in Ruidoso? One contribution to this positive cash flow is your goal to reduce unnecessaryexpenses. This sacrifice will bring us the much needed funds to accomplish futuregoals. (Keep in mind some expenses may change such as utilities, gasolinecosumption, 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. 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 thechildrens school semester. Thus, I estimated you would buy the house in June, and startpaying 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 allocatedtowards paying off your credit card debt. As you can see this statement shows azero 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 apositive 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. 35. Jerry & Cassandra Williams Personal DataLine Item Amount MonthlyPersonal Residence $360,000 $ -Checking Account Balance 7,000Savings Account Balance 15,000Money Market Mutual Funds 20,000Jerrys Growth Mutual Fund 5,750Cassandras Municipal Bond Fund 7,000Power Station, Inc. Stock 8,000Land near Ruidoso 65,000Jerrys Apartment Building 125,000Automobile #1 Value 25,000Automobile #2 Value 17,500Wizard Research Associates Ownership (1/4 interest) 250,000Cassandras Trust Value 100,000Jerrys Whole Life Insurance Cash Value 5,500Cassandras IRA Accounts 17,000Cassandras Defined Contribution Retirement Plan Value 35,000Jerrys Universal Life Insurance Cash Value 3,000Jerrys Treasury Note Current Market Value 147,837Closing Costs (Lubbock Home) 21,000Closing Costs (Ransom Canyon Home) 5,641Mortgage Downpayment (Personal Residence) 72,000Home Owners Association Fee (Personal Residence) 120Mortgage P&I Payment (Personal Residence) 30,096 2,508Property Tax (Personal Residence) 10,150Mortgage P&I Payment (Land) 2,847 237Property Tax (Land) 700Mortgage P&I Payment (Apartment) 4,187 349Auto Loan Payments (1st Car) 9,960 830Child Support Payments (Jerry) 12,000 1,000Jerrys Whole Life Insurance Premium Payments 2,000Apartment Taxes 2,500Apartment Maintenance 500Charity Contributions 2,000Jerrys University Annuity (Contribution) 7,200Group Medical Insurance (Payroll Deduction) 4,200 350Jerrys Universal Life Insurance Premium 800Property & Liability Insurance Premium (Per. Residence) 1,800Auto Insurance Premium (Both Cars) 1,300 (semi-annual)Reinvested Investment Income 3,183FICA (Jerrys Salary) 6,885FICA (Jerrys Business Income) 3,475FICA (Cassandras Salary) 3,443FIT 58,721Property & Liability Insurance Premium (Apartment) 875
  36. 36. Out-of-Pocket Medical Expenses 1,525Vacations 4,700Personal Care 1500 125Food 16620 1,385Furniture, Appliance, Housing 4680 390Child Care 6000 500Entertainment 4740 395Clothing 6000 500Auto Maintenance 2100 175Gasoline 4140 345Utilities, including cable and internet 9420 785Football and Basketball Tickets 5000Miscellaneous 1800 150Unreimbursed Business Expenses 1,350Sale of Lubbock Home 63,405Power Station, Inc. Stock Dividend 480Money Market Mutual Fund Dividend 68Jerrys Growth Mutual Fund Dividend 100Apartment Building Rental Income 11,000Jerrys University Salary 90,000Jerrys Wizard Research Associates Net Income 48,000Cassandras Hospital Salary 45,000Cassandras Trust Income 5,000Interest Income 110Cassandras Municipal Bond Fund Coupon 175Jerrys U.S. Treasury Note Interest 2,250Mortgage Balance (Personal Residence) 280,476Mortgage Balance (Land) 21,933Mortgage Balance (Apartment) 60,282Auto Loan Balance (1st Car) 15,693Jerrys Employers Matching Annuity 7,200
  37. 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

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