AN INSURANCE PLANNING MINI-CASE / TUTORIALOUTLET DOT COM AN INSURANCE PLANNING MINI-CASE / TUTORIALOUTLET D

An insurance planning mini-case
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AN INSURANCE PLANNING MINI-CASE
John Butterfield, 49, and his wife Haley Butterfield, 44, live in a
relatively new home on the outskirts of
Anycity, Anystate. They have been married for 23 years and have
three children. Both John and Haley are in
excellent health. Their son Troy, age 20, is a baseball player on
scholarship at the University of Anystate.
Daughter Holly, age 17, hopes to attend State University next fall as a
cadet to begin pursuing a career in the
Marine Corps.
The choices of their first two children have allowed the Butterfields to
concentrate their college saving
goals on Naomi, the youngest, at age 13. John and Haley have come
to you for help in addressing several
insurance planning questions and concerns. Use the following
information to conduct a review of their
financial situation and use your analyses to answer the questions that
follow the case narrative. Global Assumptions (Valid unless
otherwise Specified in Certain Instances)
Inflation: 3.5%
All income and expense figures are given in today’s dollars.
Federal marginal tax bracket: 25%
State marginal tax bracket: 5.75%
Any qualified plan or IRA contribution growth rates are assumed to
stop at the federally mandated
limit unless otherwise restricted.
All nominal rates of return are pretax returns. Income Issues
John has worked for the last 14 years as an engineer for CNS Design.
He has an $81,000 salary. He would
like to retire at age 67.
Haley has worked as a CPA for 17 years, the last 14 of which have
been out of their home. Though her