Financial Case Study Example | Topics and Well Written Essays - 2000 words

Financial - Case Study ExampleIt is noneworthy that family is though enjoying the current ease of payments nevertheless is piling up debt that allow for move beyond the capacity of the family in future. Major pressures depart be piled up from regular home installment, coronation units huge payment that is also not offering redraw facility, credit card that is piling up with regularity. The dividends from the stocks that Ann inherited are already recognized as franked and so cannot be relied for payment of certain of such debt. One aspect that identifies the issues is the capital appreciation from stocks in three years is 2.2% only. This percentage appears worthless as it is multiple to the percentage payable on the investment funds unit. Also investments made by the family are not generating the notable income such as tenant income from investment unit is running in deficit of USD 134 after meeting expense of interest. Two children are so far to gain the higher education, the p rice of which is constantly on rise due to economic pressures. This problem will be complimented with the fact that both bread earners of family are in their late forties therefore, the woman will retire in middle term in future while man though has his feature business but will reduce the capacity to visit same number of clients as he does today and so will earn less or no. Also fast paced proficient changes will ultimately require men to hire workforce which will add cost to the business. Hence, the boilers suit revenue and expense plan is not worth. Considering these factors the future of the family is gloomy and troublesome. It can be safely verbalize that the future of the family is at financial risk. Steps To Improve the Situation with Respective Rationales The reflection of future genuine from the assessment of the case clearly requires that it is high of time for family to assess the contribution from each cost incurred and individual benefit derived from it in current point in time as well as for future. This retentive term planning requires family to set the future goals. Goals to be set as suggested must meet hobby requirements Each goal set must ensure that it results in meeting the financial benefit in the long terms. Goals must also enable family to align their current financial resources in a personal manner that are able to generate the productive results. With above two financial directions for setting goals and well as the case information, following goals must be set by the family Readiness to re-allocation of the financial resources. Meeting and paying-off the debt effect without generating any additional debt. Enable the family to meet the educational expense of the children Enable the family to meet the meet medical examination requirement for father and Jack and Ann in future Enable the family to meet the fixed expenditure of the family safely once the family bread earners retire. The last goal of the family is to ensure the c ontribution in the family cipher from every earning head. formerly the family has determined what financial resource they require in the different points in time, then it shall focus itself in directing the financial resources accordingly. This will require the family to rebuild its budget. Following steps are suggested to the family for the reallocation of the budget The family must retire the debts it has piled from two cars and a