education funding

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

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

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

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


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


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

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 Flow

% 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


Property Tax 700 0.33%

Total Land near Ruidoso 3,547 1.67%

Cash Flow Statement - Jerry & Cassandra Williams

Year Ending December 31, 2010

Apartment Building


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%































Credit Card Balance $7,843 Liability


% 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

Net Worth Statement - Jerry & Cassandra Williams

As of September 24, 2011

Ratio Analysis - Jerry & Cassandra Williams

Target Analysis

Liquidity

Emergency Fund liquid assets 1.92 (months) ≥ 2.5 months

monthly expenses

liquidity or decrease spending.

Current ratio current assets 4.34 (months) 1-2 months

current liabilities Good

Savings savings 8.10% ≥ 10 %

gross income

Asset Allocation liquid assets 4.18% ≥ 15 %

net worth

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

Nowhere near amount of liquid

assets needed.

A cause for concern. I suggest

having 3 to 6 months for a

emergency fund. Increase

Savings is too low compared

to total income. Increase savings.

after-tax income ≥ 45 % danger-point

total debt 48.38% varies

net worth

long-term debt 47.41% varies

net worth


total assets


total assets































Credit Card Debt Balance $7,843 Liability



% of Total


Employment




Total Employment 183,000 90.51%

Other Inflows

Apartment Building Rental Income 11,000 5.44%


Cassandra's Municipal Bond Fund Coupon 175 0.09%





Interest Income 110 0.05%

Total Other Inflows 19,183 9.49%


% of Total


Payroll Taxes

FIT 34,309 17.43%




Total Payroll Taxes 48,112 24.44%


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






Total Personal Residence 41,941 21.31%

Land near Ruidoso



Total Land near Ruidoso 3,547 1.80%



Apartment Building





Total Apartment Building 8,063 4.10%

Automobile Expenses

Auto Loan Payments 9,960 5.06%




Total Automobile Expenses 18,800 9.55%

Living Expenses


Vacations 3,525 (-25%) 1.79%

Personal Care 1,350 (-10%) 0.69%

Food 14,958 (-10%) 7.60%


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




Property Tax (Florida Condo) 1,000 0.51%



Credit Card P&I Payment 4,704 2.39%


Total Other Outflows 28,054 14.25%


Unidentified Cash Flow $5,350 2.65%































Credit Card Balance $7,843 Liability


% of Total


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 Florida Condo Inheritance 110,000 9.08%


Wizard Research Associates Ownership 250,000 20.65%

Total Investment Assets 662,087 54.68%

Retirement Assets



Total Retirement Assets 52,000 4.29%

Personal Use Assets


Automobile #1 25,000 2.06%

Automobile #2 17,500 1.45%


Total Personal Use Assets 457,500 37.78%

Total Assets 1,210,937 100.00%

% of Total


Short-Term Liabilities

Credit Card Balance 7,843 2.00%

Total Short-Term Liabilities 7,843 2.00%





Auto Loan Balance 16,434 4.18%

Total Long-Term Liabilities 385,244 98.00%


Net Worth $817,850


As of October 6, 2011

Ratio Analysis - Jerry & Cassandra Williams

(after recommendations)Target Analysis

Liquidity

Emergency Fund liquid assets 2.40 (months) ≥ 2.5 months

monthly expenses

Current ratio current assets 5.02 (months) 1-2 months

current liabilities Good

Savings savings 5.14% ≥ 10 %

gross income

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

It would be very hard in their

Improved, but still need to try

to reduce expenses/save more to

reach the goal of 3 months

Good

after-tax income ≥ 45 % danger-point


net worth


net worth


total assets


total assets

current situation to satisfy this

ratio. After they pay off some of

their debt (CC) it will improve.

Watch closely

It would be very hard in their

Improved, but still need to try

to reduce expenses/save more to

reach the goal of 3 months

Good

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)

Statement of Cash FlowsJerry and Cassandra Williams

December 31, 2010

Other Inflows 40%

Payroll Taxes -19%


-3%

Personal Residence

-35% Land near Ruidoso

-1% Apartment

Building -2%

Cash Outflows for 2010

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

Statement of Net WorthJerry and Cassandra Williams

September 24, 2011

Liquid Assets 4%

Investment Assets 50%

Retirement Assets 5%

Personal Use Assets 41%

Total Assets




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


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

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 Contributions

Unreimbursed Business Expenses

Subtotal Other Outflows

Total Cash Outflows


% of Total


Employment




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%


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%





Interest Income on Checking and Savings 110 0.03%

Subtotal Other Inflows 154,804 45.83%


% of Total


Payroll Taxes

FIT (Joint) 58,721 higher due 17.57%

FICA (Jerry's Salary) 6,885 to sale 2.06%



Subtotal Payroll Taxes 72,524 21.70%


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%






Subtotal Personal Residence 133,907 40.06%

Land near Ruidoso



Subtotal Land near Ruidoso 3,547 1.06%

Apartment Building





Subtotal Apartment Building 8,062 2.41%

Automobile Expenses

Auto Loan Payments (1st Car) 9,960 2.98%




Subtotal Automobile Expenses 17,500 5.24%

Living Expenses


Vacations 3,995 (-15%) 1.20%


Food 15,789 (-5%) 4.72%


Entertainment 4,029 (-15%) 1.21%

Clothing 5,700 (-5%) 1.71%


Miscellaneous 1,440 (-20%) 0.43%

Subtotal Living Expenses 44,978 13.46%

Other Outflows

Closing Costs (Lubbock Home) 21,000 6.28%







Subtotal Other Outflows 43,350 12.97%

























Mortgage Downpayment (Personal Residence) $72,000 Cash Outflow

Home Owner's Association Fee (Personal Residence) $120 Cash Outflow






















































Education Fund 11242 Asset

% of Total


Liquid Assets


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



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%




Wizard Research Associates Ownership (1/4 interest) 250,000 22.16%

Subtotal Investment Assets 566,882 50.24%

Retirement Assets



Subtotal Retirement Assets 52,000 4.61%

Personal Use Assets

Personal Residence 360,000 new 31.90%

Automobile #1 Value 25,000 2.22%



Subtotal Personal Use Assets 467,500 41.43%

Total Assets 1,128,382 100.00%

% of Total


Short-Term Liabilities 0 No CC debt

Subtotal Short-Term Liabilities 0 0.00%


Personal Residence Mortgage Balance 280,476 new 74.12%



Auto Loan Balance (1st Car) 15,693 4.15%

Subtotal Long-Term Liabilities 378,384 100.00%


Net Worth $749,998


As of August 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



Cash Outflows






Auto (17,500)




Available Cash Flows $3,553


December 31, 2012

Payroll Taxes -22%


-3%

Personal Residence

-40%

Land near Ruidoso

-1%

Apartment Building

-2%

Auto -5%

Living Expenses -12%

Other Outflows -13%


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.



Assets






Liabilities

Short-term Liabilities 0



Net Worth $749,998


August-12

Liquid Assets 4%




Total Assets


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

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

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

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

Cash Inflow Cash Outflow GoalSale of Condo 110000 Transactions Costs (Condo) 2500

Increase in FIT from sale 19800

Increase Emergency Fund 8000 Emergency Fund

(put more money into goal of 35,000

Money Market Mtual Funds)

Pay Off Credit Card Debt 7843 Pay Off All Credit

(all at once) Card Debt Goal

Total Outflows 38143

Put into 6-month CD 71857

until House Purchase

(remainder from sale of

condo)

Interest on CD 359

Overall Net Cash Flow positive Put in Savings Account X? Reduce

(after you pay off credit #X? Expenditures Goal

card and reduce variable

expenses your CF

becomes positive)

More interest on savings acct. unknown?

Cash Timeline:How Goals/Recommendations are Funded

Present - 2011

Until Purchase

Sell Old House 63404.91 Closing Costs (old) 21000 Buy New House Goal

Interest from CD 359 Closing Costs (new)*** 5641

Cash from 6-month CD that matured 71857 Downpayment 72000

HOA fee 120

Total Inflows 135621 Increase in FIT from sale 11413

Increase in RE taxes 2350

Increase in annual mort pmt 11855

Total Outflows 124379

11242 Education Fund - use

to stat-up Charles' 529

***closing cost from new house were received from a closing costs calculator at www.realtor.com (information is in the appendix)

Remainder

Time of Purchase

Todays Cost (TA&M) $18,020

Todays Cost (UW-Madison) $35,171

Cost Escalation 7.00% Custodial Account (Laura) $89,087

Laura Age 14 Custodial Account (Elaine) $84,432

Elaine Age 12

Charles Age 6

College Start 18

College Stay 4

Investment Rate (Laura) 4.80%

IARR (Laura) -2.06%

Investment Rate (Elaine) 4.80%

IARR (Elaine) -2.06%

Investment Rate (Charles) 8.00%

IARR (Charles) 0.93%

Assumptions

Years 4 5 6 7 Total

College Cost $23,620.54 $25,273.98 $27,043.16 $28,936.18 $104,873.87

Required Current Investment $19,581.45 $19,992.51 $20,412.20 $20,840.70 $80,826.85

Custodial Account Current Value $89,087.00

Required Annual Ordinary Annuity -$2,318.65

Required Annual Annuity Due -$2,212.45

Years 6 7 8 9 Total

College Cost $27,043.16 $28,936.18 $30,961.71 $33,129.04 $120,070.09


Custodial Account Current Value $84,432.00

Required Annual Ordinary Annuity -$34.46

Required Annual Annuity Due -$32.88

Years 12 13 14 15 Total

College Cost $79,211.83 $84,756.66 $90,689.62 $97,037.90 $351,696.01


Available cash for now for 529 plan $14,795.01

Required Annual Ordinary Annuity $14,502.59

Required Annual Annuity Due $13,428.32

TODAY'S TOTAL COST $576,639.97

TODAY'S TOTAL REQUIRED INVESTMENT $289,170.44

College Costs

Laura

College Costs

Elaine

College Costs

Charles

Years 4 5 6 7 8 9

College Cost - Laura $23,620.54 $25,273.98 $27,043.16 $28,936.18 -$ -$

College Cost - Elaine - - $27,043.16 $28,936.18 $30,961.71 $33,129.04

College Cost - Charles - - - - - -

Total Annual College Cost $23,620.54 $25,273.98 $54,086.32 $57,872.36 $30,961.71 $33,129.04

Required Current Investment Total

Laura $19,581.45 $19,992.51 $20,412.20 $20,840.70 $80,826.85

Elaine $20,412.20 $20,840.70 $21,278.19 $21,724.87 $84,255.96

Charles $31,456.11 $31,164.85 $30,876.28 $30,590.39 $124,087.63

College Costs

10 11 12 13 14 15 Total

-$ -$ -$ -$ -$ -$ $104,873.87

- - - - - - $120,070.09

- - $79,211.83 $84,756.66 $90,689.62 $97,037.90 $351,696.01

-$ -$ $79,211.83 $84,756.66 $90,689.62 $97,037.90 $576,639.97

Custodial Account Funds Needed

$89,087.00 $0.00

$84,432.00 $0.00

N/A $124,087.63

Today's Total Required Investment $124,087.63

Required Annual Ordinary Annuity $14,502.59

Required Annual Annuity Due $13,428.32

Required Monthly Savings Annuity Due $1,208.55

Required Monthly Savings Ordinary Annuity $1,119.03

College Costs

Years 4 5 6 7 8 9 10 11 12 13 14 15 Total

College Cost - Laura $23,600 $25,300 $27,000 $28,900 -$ -$ -$ -$ -$ -$ -$ -$ $104,800

College Cost - Elaine - - $27,000 $28,900 $31,000 $33,100 - - - - - - $120,000

College Cost - Charles - - - - - - - - $79,200 $84,800 $90,700 $97,000 $351,700

Total Annual College Cost $23,600 $25,300 $54,000 $57,800 $31,000 $33,100 -$ -$ $79,200 $84,800 $90,700 $97,000 $576,500

Required

Current Investment Total

Laura $19,600 $20,000 $20,400 $20,800 $80,800 $89,087 -$

Elaine $20,400 $20,800 $21,300 $21,700 $84,200 $84,432 -$

Charles $31,500 $31,200 $30,900 $30,600 $124,200 N/A $124,200

Today's Total Required Investment $124,200

Required Annual Ordinary Annuity $14,500

Required Annual Annuity Due $13,400

Required Monthly Savings Ordinary Annuity $1,200

Required Monthly Savings Annuity Due $1,100

College Costs

Custodial Account Funds Needed


































Interest from 6-month CD (4 months in 2012) 359 Cash Inflow

Charles 529 Plan Annual Contribution 13428 Cash Outflow

% of Total


Employment





Other Inflows

Sale of Lubbock Home 63,405 18.77%



Interest on Municipal Bond Fund (Cassandra) 175 0.05%

Cash from 6-month CD that matured 71,857 21.27%

Interest from 6-month CD (4 months in 2012) 359 0.11%








% of Total


Payroll Taxes

FIT (Joint) 58,721 16.89%






Reinvested Interest and Dividends 3,183 dip into 0.92%

Jerry's University Annuity ( 401k Contribution) 7,200 savings 2.07%

Charles 529 Plan Annual Contribution 13,428 until 2013 3.86%


Personal Residence



Closing Costs 5,641 1.62%

Mortgage Downpayment 72,000 20.71%

Home Owner's Association Fee 120 0.03%







Land near Ruidoso




Apartment Building






Automobile Expenses

Auto Loan Payments (1st Car) 9,960 2.86%





Living Expenses




Food 15,789 4.54%







Other Outflows

Closing Costs (Lubbock Home) 21,000 6.04%









Unidentified Cash Flow ($9,875) -2.92%

borrow from savings until 2013

































Education Fund 11242 Asset

% of Total


Liquid Assets

Checking Account Balance $7,000 remove 0.62%

Savings Account Balance 5,125 $9,875 for 0.46%

Money Market Mutual Fund Balance 20,000 529 plan 1.78%


Investment Assets




Education Fund (Charles 529 Plan) 20,194 1.80%







Retirement Assets




Personal Use Assets






Total Assets 1,123,906 100.00%

% of Total


Short-Term Liabilities 0






Auto Loan Balance (1st Car) 15,693 4.15%



Net Worth $745,522


As of August 2012



































Charles 529 Plan Annual Contribution 13,428 Cash Outflow

Maturing of U.S. Treasury Note 150,000 Cash Inflow

% of Total


Employment





Other Inflows




Maturing of U.S. Treasury Note 150,000 42.87%

Jerry's U.S. Treasury Note Interest 0 matured 0.00%







% of Total


Payroll Taxes

FIT (Joint) 33,904 15.82%







Jerry's University Annuity ( 401k Contribution) 7,200 cash now 3.36%

Charles 529 Plan Annual Contribution 13,428 avaiable


Personal Residence








Land near Ruidoso






Apartment Building






Automobile Expenses

Auto Loan Payments (1st Car) 0 no more 0.00%

Auto Insurance Premium 1,300 payments 0.61%




Living Expenses




Food 15,789 7.37%







Other Outflows










































Education Fund Initial Investment 11242 Asset

% of Total


Liquid Assets


Savings Account Balance 15,000 1.50%

Money Market Mutual Fund Balance 20,000 2.00%


Investment Assets




Education Fund (Charles 529 Plan) 33,623 3.36%



Jerry's Treasury Note Current Market Value 0 matured 0.00%




Retirement Assets




Personal Use Assets






Total Assets 999,373 100.00%

% of Total


Short-Term Liabilities 0






Auto Loan Balance (1st Car) 0 paid off 0.00%



Net Worth $636,681


As of December 2013



































Charles 529 Plan Annual Contribution 13,428 Cash Outflow

Maturing of U.S. Treasury Note 150,000 Cash Inflow

% of Total


Employment





Other Inflows










% of Total


Payroll Taxes

FIT (Joint) 6,904 3.69%







Jerry's University Annuity ( 401k Contribution) 7,200 3.84%

Charles 529 Plan Annual Contribution 13,428


Personal Residence








Land near Ruidoso






Apartment Building






Automobile Expenses





Living Expenses




Food 15,789 8.43%







Other Outflows










plenty of funds for education

especially with treasury note funds

This is a statement of all of your cash inflows and outflows projected after you buy

a new home and begin to save for your children's education, ending on December 31, 2012.

Your cash outflows exceed your cash inflows so the amount of available cash flows is

negative. Thus, to contribute to Charles' 529 plan I suggest borrowing from your savings

account for this year. Next year, your treasury note of $150,000 will mature giving you

the much needed cash to help save for Charles' education over the upcoming years.

Cash Inflows

Employment $183,000



Cash Outflows






Auto (17,500)




Available Cash Flows ($9,875)


December 31, 2012

Payroll Taxes -21%


-7%

Personal Residence

-39%

Land near Ruidoso

-1%

Apartment Building

-2%

Auto -5% Living Expenses

-13% Other Outflows

-12%


This is a statement showing all of your assets and liabilities as of December 2012.

I have forecasted that you begin funding a 529 plan for Charles making annual contributions.

For 2012, cash must be borrowed from your liquid assets (savings acct.) to invest in your

529 plan for Charles. Once, you get excess funds you can replenish your desired savings level.



Assets






Liabilities

Short-term Liabilities 0



Net Worth $745,522


December-12

Liquid Assets 3%




Total Assets

education funding

Documents

cash outflowfica cassa

cash outflowapartment

life insurance cash

cash outflowfica jerrys

cash outflowproperty

cash outflowauto loan

jerrys apartment building125

jerrys university salary90