Martha is 80 and has a very high net worth. Her most important financial concern is probably her Group of answer choices estate. insurance. employee benefits. career.
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- Martha is 25 and has a very low net worth. Considering the life cycle, her most pressing financial concern is probably: Oasset acquisition planning O liability planning O estate planning insurance planning O tax planningMargaret, age 65, and John, age 62, are married with a 23 -year-old daughter who lives in their home. They provide over half of their daughter's support, and their daughter earned $4,100 this year from a part-time job. Their daughter is not a full-time student. The daughter can/cannot be claimed as a dependent because: She cannot be claimed because she is over 19 and not a full-time student. She can be claimed because she is a qualifying child. She can be claimed because she is a qualifying relative. She cannot be claimed because she fails the gross income test.John is forty years old, and works in the Private Sector. He feels it is still too early to worry about old age, and does not have a systematic investment plan. His focus is very much on the quality of life at present. As his financial planner, discuss the types of risks he is likely to face post retirement
- Mr. Akpafu-lolobi is 55 years of age, is in excellent health, pursues a simple but active lifestyle, and has three children. He has interest in a private company for GH¢50 million and has decided that his children will receive half the proceeds now and will be the primary beneficiary of his estate upon his death. Mr. Akpafu-lolobi is committed to the well-being ofhis family because he believes strongly that, through the financial stability of his children, other facilities are going to be affected positively. He now realizes that an appropriate investment policy and asset allocations are required if his goals are to be met through investment of his considerable assets. Currently, the following assets are available for use in building an appropriate portfolio for him:Assets AmountCash GH¢ 45 millionGCB shares GH¢ 10 millionShops for rental…John and Janet are both 61 years old, and they are still working at their current jobs. Neither one of them plans to retire until age 67. They sold their main home, and with the proceeds from the sale, they purchased a condominium and paid for it in full. They have $104,000 left in the bank. Which investment vehicle is appropriate if they want to avoid losing any of the money and use it all for their retirement?Cora, 79, has an estate that includes her personal residence valued at $120,000 and $18,000 in a bank account that is solely in her name. She would like to arrange her estate so that she maintains exclusive control of the assets during her lifetime, but at her death the assets will pass to her friend, Mabel, outside of probate. Based on Cora's goals and situation, which of the following are correct statements about will substitutes that she could use? She should put her bank account in tenancy in common with Mabel. She should title her personal residence in joint tenancy with her friend, Mabel. She should execute a will that names her friend, Mabel, as the legatee of the bank account and the devisee of the personal residence. She should place the bank funds in a payable on death (POD) account with Mabel as beneficiary. She should change the title on her personal residence to indicate a life estate reserved for her lifetime and a remainder to her friend, Mabel. A)IV and V…
- Mr. Franklin is 70 years of age, is in excellent health, pursues a simple but active lifestyle,and has no children. He has interest in a private company for $90 million and has decidedthat a medical research foundation will receive half the proceeds now and will be the primarybeneficiary of his estate upon his death. Mr. Franklin is committed to the foundation’swell-being because he believes strongly that, through it, a cure will be found for thedisease that killed his wife. He now realizes that an appropriate investment policy and assetallocations are required if his goals are to be met through investment of his considerableassets. Currently, the following assets are available for use in building an appropriateportfolio for him:$45.0 million cash (from sale of the private company interest,net of a $45 million gift to the foundation)$10.0 million stocks and bonds ($5 million each)$ 9.0 million warehouse property (now fully leased)$ 1.0 million value of his residence$65.0 million total…Bob and Jane, age 53 and 51, are physicians, each earning over $100,000 per year. Through years of prudent financial decisions and a commitment to saving money they have accumulated over $1,500,000 in assets, paid off their home, and have no outstanding debts. The couple's combined annual living expenses are $60,000, and they have planned their estate to reduce taxation to a minimum. Although Bob and Jane are not interested in life insurance, they want to learn more about long-term care insurance. Which of the following statements regarding their long-term care insurance needs are CORRECT?\\n\\nA)\\nPremiums paid by the individual are tax-deductible as a medical expense for itemized deduction purposes, subject to limitations based on the individual's age.\\nB)\\nMedicare covers only a maximum of 100 days of custodial nursing care, and only the first 20 days are covered 100%.\\nC)\\nIf the insured qualifies for a viatical settlement, the insured cannot exclude the gain from the sale of…Nadine is retiring at age 62 and expects to live to age 85. On the day she retires, she has $1,650,000 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6 percent during her retirement years. How much can she withdraw from her retirement savings each month if she plans on giving $300,000 to her grandson on the morning of her death? PLEASE SHOW WORK
- Ann, who is age 22, just returned to the work force last week after giving birth to twins. She has limited disposable income. She is healthy now but her family history indicates the incidence of stroke. She would like some insurance coverage for her children’s education in the event of her death. What kind of plan would you recommend to Cindy?Your 80-year-old uncle has an estate valued at over $10 million and asked for your advice regarding how to make sure that each of his heirs receive certain assets and that estate taxes are minimized. What steps would you recommend? Be sure to address such issues as wills, trusts, gifting, and probate.The Jeffersons want to establish a trust to provide for their children in case of their premature deaths. Which of the following is most appropriate for the Jeffersons' overall situation and objectives (objectives are Capital accumulation is a primary concern in this stage of their lives. The protection of principal, income production, and reduction of taxes are of minor importance)? They have a net worth of $725,000 Provide a rationale for your answer. Choose one of the following an irrevocable life insurance trust granting Crummey powers to the children a grantor retained income trust (GRIT) with their children, Ashanti and Blake named as beneficiaries a revocable living trust naming a third party as successor trustee, with Avery and Jaylen as the primary beneficiaries while living and the children listed as remainder beneficiaries an irrevocable living trust naming the children as beneficiaries and Jaylen and Avery as the trustees
