Calculate stephanies total life insurance requirements and

Assignment Help Finance Basics
Reference no: EM13782488

Rachel Ehrlich is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Stephanie for two years. Her only income is $850 a month in Social Security survivor's benefits. Stephanie wants to make sure that her mother will be taken care of if Stephanie should die. Stephanie, 40, is single and earns $55,000 a year as a human resources manager for a small manufacturing firm. She owns a condo with a current market value of $100,000 and has a $70,000 mortgage. Other debts include a $5,000 auto loan and $500 in various credit card balances. Her 401(k) plan has a current balance of $24,500, and she keeps $7,500 in a money market account for emergencies. After talking with her mother's doctor, Stephanie believes that her mother will be able to continue living independently for another two to three years. She estimates that her mother would need about $ 2,000 a month to cover her living expenses and medical costs during this time. After that, Stephanie's mother will probably need nursing home care. Stephanie calls several local nursing homes and finds that it will cost about $5,000 a month when her mother enters a nursing home. Her mother's doctor says it is difficult to estimate her mother's life expectancy but indicates that with proper care, some Alzheimer's patients can live 10 or more years after diagnosis. Stephanie also estimates that her personal final expenses would be around $5,000, and she'd like to provide a $25,000 contingency fund that would be used to pay a trusted friend to supervise her mother's care if Stephanie were no longer alive.

Calculate Stephanie's total life insurance requirements and recommend the type of policy that she should buy. 

Reference no: EM13782488

Thinking of martha graham''s artistic leadership style

Thinking of Martha Graham's artistic leadership style,  discuss one leadership characteristic or quality she displayed that you find most relevant to your own leadership in yo

Local currency fluctuations against the us dollar

Demonstrate your local currency fluctuations against the US dollar and national export import value of your country for the last five years at least in the forms of tables a

Decision case impact the validity of the board

If auditing of financial statements is required for the protection of public investors, should not all PCAOB members be taken from the investment community that uses audited

Understand the multiplicity of currencies

Understand the multiplicity of currencies and the attendant problems related to nominal contracts. Differentiate the partial segmentation of capital markets producing potentia

What is the markets expectation of the yield

One year Treasury securities yield 5 percent. Three year Treasury securities yield 5.2 percent. Assume the pure expectations theory holds. What is the market's expectation o

Ibm spend on research

Describe in a paragraph what this project is. Go back to the IBM front page, find "Investor Relations" at the bottom of the page. Go to IBM's most recent annual report. How

Should the film maker make the investment

Refer to the information above. Assuming that the film maker issues the new security, the net present value (NPV) for this project is closest to what amount? Should the film

What is the smallest expected loss on your portfolio

Your portfolio is equally weighted between Metallica Bearings and Osbourne, Inc., stocks in the previous two questions. The return correlation between the two stocks is zero.

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd