Assignment:
Task:
Susan Smith is an office administrator for a small company that does not have a retirement plan. Susan is 38 years old, divorced with a 14-year-old daughter.
Her ex-husband pays $600 a month in child support.
He also maintains a $75,000 life insurance policy with Susan as beneficiary.
Susan's monthly rent is $900.
Susan will receive $40,000 when former residence is sold.
Susan has $5,000 credit card debt @ 18% interest.
$2,500 in savings
Maximum payment on credit cards are $300
Susan received inheritance of $20,000 which she has placed in a 90-day Certificate of Deposit
Susan has never had a budget her income or expenses
Susan's goals:
To get control of her finances
Purchase a $95,000 condominium
Save money for retirement
Q: What are your recommendations to Susan? What does she need to do to reach her goals? What steps are necessary for Susan to get her finances in order? Explain.