Memorandum: Eric Borchardt Financial Planning Services

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Memorandum To: Mr. and Mrs. Smith From: Eric Borchardt Financial Planning Services Date: [ 7/25/ ]13 Re: Your Financial Assessment Financial Assessment Confidential The financial assessment completed by Eric Borchardt Financial Planner Services considered all aspects of your financial position. The attached report is based on the questionnaire completed by you on July 15, 2013, while I visited your home. The reports are completely indicative of your financial situation, but only based on your accuracy and honesty while completing the questionnaire. The information you provided regarding the household members of your family include: Husband: John Smith Wife: Jane Smith Child: Ava Smith Age: 34 Age: 28 Age:…show more content…
Annually you pay nearly $12,000 to maintain ownership of the home with no revenue generated, and the house is not used as a vacation property. The sale of the house will greatly benefit your family. At current your net worth is quite impressive. For your age, with your background, your family has a significant net worth, which you should be proud of. Monthly budget is in dire straits, your monthly total cash flow is $119. This does not allow for you to save for a rainy day, or prepare for unexpected expenses that may arise. This should be addressed as soon as possible. Recommendations One major recommendation will improve your family’s financial situation drastically. Sell the property in Wisconsin. If the home sells for 90% of its value ($136,800), minus realtor expenses ($8,208), minus mortgage balance ($109,532), minus home equity line of credit ($15,000) you will have approximately $4,060 left in equity. This money could be the start of your emergency savings fund. Transferring your monthly expenses for the house in Wisconsin to contributing to you emergency saving account would yield a $1,150 monthly contribution and drastically increase the amount of money in

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