- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #1
Data:
Bill and Diana are concerned for their family’s welfare should Bill die. He is currently making $80,000 per year, has two children, and his company gives him $50,000 in life insurance coverage as a benefit. If he died, Diana is sure she could invest the insurance settlement and make 5 percent after taxes and inflation for twenty years until the kids finish school. She is in the 30 percent marginal tax bracket.
Calculations:
What is the process for determining needs? (Assume a 22 percent drop in living expenses after death)
How much insurance should Bill have?
