How would you assess the strengths and weaknesses of the Lawrence's financial condition at this stage in their lives?
The Lawrence's have a decent income which amounts to close to 100 thousand dollars per year. Their assets column stands at 230 thousand dollars. Their weakness is majorly on the living expenses where a considerable part of what they get in a month goes up to 81%. This falls squarely under liabilities; they remain only with 19% of what they get per month for reinvesting. With two teenagers in the family, it translates to the 19% being split into four parts which reduce the 19% even further to $375 per individual. They need to address their liabilities situation to bring it down to manageable levels. The fact that they are worth $146,500 without any debts is something good, but the focus should increase their net worth since they both Shelby and ark are approaching retirement.
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At their current ages, what should their significant priorities be as they continue to plan for retirement?
Their priorities should be to lower the monthly expenditure which is enormous compared to their monthly earnings. The 1500 dollars will better be used in reinvestment to boost their chances of attaining their goals financially. Any installment payments which may be eating into their monthly income should be paid. All debts are bad especially for people who are approaching retirement, so this should be cleared well in advance to decrease the sum of their liabilities (Kapoor et al., 2015)
Explain how Shelby and Mark might use the Personal Financial Planner sheets on Retirement Housing and Lifestyle Planning and Forecasting Retirement Income.
To assist them in understanding what it will require for their retirement according to their lifestyles the Lawrence's can use the personal financial planner sheets. They will be able to make a nest egg which is vital when money is hard to come by and also tell their income during retirement. This will go a long way to ease financial constraints in the future. As they age they can consider their wills so as to make sure their assets go to their kids, this goes a long way in helping them plan for retirement. It can be of help for them to understand tax projections in real estate and the costs of the settlement.
The sheets of financial planning will guide them to the future they desire financially (Martin & Finke, 2012). It is not easy to plan for retirement without something to guide you especially having two teenagers in school. The guide reduces the stress in planning which leads to better health.
References
Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hart, M.M. (2015). Personal finance (11th ed.). New York, NY: McGraw-Hill.
Martin, T., & Finke, M. (2012). Planning for Retirement. SSRN Electronic Journal . doi: 10.2139/ssrn.2195138
