Susan Smith is an office administrator for a small company that does not have a...
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Finance
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.
Susans monthly rent is $900.
Susan will receive $40,000 when her former residence is sold.
Susan has $5,000 in credit card debt at 18% interest.
She has $2,500 in savings.
The maximum payment on her credit cards is $300.
Susan received an inheritance of $20,000 which she has placed in a 90-day Certificate of Deposit (COD).
Susans monthly take-home pay is $3,000.
Susan has never had a budget for her income or expenses.
Susan's goals:
To get control of her finances
Purchase a $95,000 condominium
Save money for retirement
Save for her daughters college education
What are your recommendations for Susan? What does she need to do to reach her goals? What steps are necessary for Susan to get her finances in order? Explain.
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