You will be graded on:
Grammar and writing style-logical flow
Length and preciseness—should be about 15 pages minimum; argue all questions, some have more than one answer. (be creative-don’t say they win the lottery all problems are solved.)
Logic, answering the question at hand-keep subject at hand-if you are developing credit stick with that and state how your advice will help them do this
****Thoroughness-include how goals and needs change in reference to the financial plan****Analysis-(baby)
Citations
Accuracy
Quotations from authorities
Following the OWL (Purdue University On-line Writing Lab) (OWL)
Spelling
Using examples from the book or other resources
Can use MLA or APA-bibliography; honestly if you just answer the questions thoroughly this will be adequate
***DO NOT RETYPE the whole question; a quick one-line summary will suffice
Also, below
Practicum: read the problem carefully; you will be applying principals learned and discussed in class to answer the issues and give a reasonable analysis of the imaginary people and situations involved.
You will need to use: (Typed double space-12 font)
***We are probably looking at fourteen pages counting the bibliography or more in length; if you are a good writer maybe less; if you are more wordy maybe 16 pages. It depends on your writing style to get the job done.**** (if research is used cite and use a bibliography-all should have this).
Situation:
A young couple recently married, and recently graduated from college (CSUF), have moved to the groom’s home town of Phoenix, Arizona. They have moved there because he has gotten a starting job (husband at Quicken loans call to find out about loan programs for first-time buyers). The Misses hopes to secure some employment when they get to Arizona (accounting-her major-easy job market). They never took wealth (asset) management training and are unsure what to do for financial implications (decisions).
They have come (to you) the bank manager, for advice to see what type of checking accounts and other accounts they should set up; for paying bills, and where they can have access to cash. They don’t have a lot of money ($4,000 after the housing deposit) they would prefer to get some interest on their money in the bank. In a year, they would like to buy a house. Current/Credit score: 630 (lack of credit history. #1 How can they improve credit and pay bills??
Questions to answer:
What accounts should they open up at the bank; what can they do to help raise their credit score? (list pros and cons)? Should they use a stock firm or other financial institution for investments or meet balance requirements? See #8 it relates
They would also like to set up a savings account (liquid and non-liquid). They would also like to set up a stock account (how much money?). (What type of accounts)
They are hoping to have a child in a couple of years they want to set up a savings plan to help with her/his college; what plans are available? Pro and Con
What accounts should they set up at work to plan for retirement long range-goal; discus at work. What private plans might they consider or through work)? Pro and Con. Don’t forget work sources his and hers.
Should they get life insurance? What kind if yes; pros and cons. What does the book say? See #9
They would also like to get a house—without much money and other goals it does not seem like a reality—especially the down payment and paying for closing costs what could they do to help in this area (sources of money) a home might be quicker reality than they think. How can you help them in this area? Is it appropriate? Research home and apartment prices on “Zillow”
There is a chance they could move back to California (where the bride’s parents reside) but housing prices are much more expensive. (double Arizona)
What are their options.
Should they buy or rent a house (apt.)? Remember he does work for a loan (finance company Quicken)? ****It should be noted that the wife’s father has offered to throw in $50,000 to help buy a home (he is more warm to it being in California). The husband will make about $6,500/ month; no real debt except for student loans of 2,000. They don’t have much credit. Wife is looking at about $5,500/month; If and when hired (2 Months or less). Do loan analysis analysis
As the bank manager you should explain how to get more credit and boost credit scores and give financial information in general.
Insurance issues: should they get renter’s insurance if they rent? What coverages should they get? What about life insurance for protection? (types pro and con)
10. What types of investments should they look at to reach their goals? I will have summary in class-haven’t covered yet. (Mutual Funds)
11. The wife would like to get her own car, when she works (gets a job). What issues should they be aware of when they get a car. (Lease or buy). Insurance?
