Unit 1 - Assignmnent

Financial Planning Case Questions

1. Which additional information might be necessary to know about Nina before determining which areas of financial planning should be her top priority?

First, I would look at how much debt Nina really has. She sounds like she has a really good head on her shoulders with the ideas she has already came up with. Another question might be what kind of income Nina currently makes in her existing job.

2. How might time value of money calculations be used by Nina in her decision-making process?

If Nina saved her money and did nothing with it for the 6 months like her financial advisor recommended, it may help her evaluate things better in what she may want to do with it. In that 6 month period, she can maybe get some interest accrued from the $12,000.

3. What actions do you recommend that Nina take before making a final decision about the use of these funds?

I recommend that Nina follow her financial advisor as I don’t think the idea of waiting is a terrible idea. Her advisor would not steer her the wrong way to begin with. Making a fast decision on what to use $12,000 for is rushing to spend it. Waiting will make Nina have time to evaluate her best options.

Continuing Case Questions

1. Given her current situation, list various personal financial decisions that Shelby may be considering at this point in her life.

Since Shelby only has about $7,300 in assets, she seems to not be a big spender on personal items besides bills. This could get her in trouble financially. She may want to consider getting another roommate besides Melinda to help cover some of the expenses. She may also pick extra hours at her employer to help cover some of the costs. She sounds like she is on the right track to trying to make her life better by continuing on with her education as long as she stays determined and not utilize her credit cards to pay her bills.

2. Describe what short-term, intermediate and long-term goals...