wealth\worth,相关概念

问题如下：

Conner McClelland is a private client financial consultant with US-based Edmonstone Wealth Management LLC. McClelland has been engaged by Bradley and Reagan Graham to develop a personal wealth management plan. Prior to meeting with McClelland, the Grahams filled out a personal profile questionnaire that will be used in developing their wealth management plan. Using information from the questionnaire, McClelland prepares Exhibit 1.

Exhibit 1 Graham Family: Personal and Financial Information

Occupations and Family Structure

• Bradley is a 50-year-oldelectrical engineer at a major utility company. His annual income of $175,000 is projected to increase 3% per year. He has a defined-contribution pension plan and expects to retire at age 65.
• Reagan is a 48-pharmacist with a pharmaceutical company. Her annual income of $132,000 is projected to increase 3% per year. She has a defined-pension plan and expects to retire at age 65. Prior to joining the pharmaceutical company, Reagan had a 20-year career in the US Navy, retiring at the rank of commander.
• The family has two children, ages 10 and 8.

Financial Information

Aspirational and Other Goals

• Cost of four years of university for the two children, with an estimated present value of $350,000
• Purchase of a vacation home in the next five years, with an estimated present value of $325,000
• Donations to charitable organizations during the next 15 years, with an estimated present value of $400,000

At their initial meeting, Bradley tells McClelland that he recently attended a financial planning seminar conducted by his employer’s human resources department. One of the presenters discussed the importance of preparing and understanding the components of an economic balance sheet compared with a traditional balance sheet. Bradley was confused by a few of the presenter’s comments and asks McClelland for further clarification. The presenter’s comments were as follows:

• Real estate can be described as a personal asset, an investment asset, and a mixed asset.
• Financial capital consists of tangible and intangible assets, including both the vested and unvested portions of an employer pension plan.
• The value of human capital relative to overall economic wealth is typically higher for an individual in mid-career with an established earnings record than for an individua

l in the early stages of his career.

As McClelland reviews insurance coverage with the Grahams, he explains that there are various ways to manage risk. “It depends on the frequency of a risk occurring and the severity of the potential loss. For example, consider the following two risks:

• An earthquake: This risk seldom occurs but would result in a large financial loss;
• Dental cavities: This risk arises frequently, resulting in small financial losses.”

McClelland determines that both Bradley’s and Reagan’s life insurance coverage is inadequate. Bradley is particularly concerned about the inadequacy of his life insurance and asks McClelland to calculate how much additional insurance he should purchase to cover him until he retires in exactly 15 years and begins to receive his employer pension. McClelland prefers to use the human life value method to determine the appropriate level of life insurance coverage. Exhibit 2 contains additional personal and financial information about Bradley.

Exhibit 2 Bradley Graham: Additional Personal and Financial Information

The Grahams mention that a primary concern is the ability to manage the risks to both their financial and human capital so that they can achieve their financial goals of maintaining a comfortable lifestyle while having sufficient assets to purchase a vacation home, pay for their children’s university education, and fund charitable donations.

Bradley mentions that he and Reagan have some concern about possibly outliving their assets and that he understands annuities can help protect against this risk. He is interested in an annuity that will provide income for as long as one of them is alive. The Grahams have average risk tolerance and expect they will be able to adjust their spending in retirement if necessary.

Using the data in Exhibit 1, the Grahams’ net wealth (in thousands) is closest to:

选项：

A.

$2,174.

B.

$2,414.

C.

$2,795.

解释：

The Grahams’ net wealth is their total assets less their total liabilities ($7,512 – $5,098 = $2,414), as calculated in the following economic balance sheet.

A is incorrect. Human capital was not included in assets and lifetime consumption was not included in liabilities: [(7,512 – 3,940) – (5,098 – 3,700)] = 3,572 – 1,398 = 2,174.

C is incorrect. The death benefit rather than the cash value of life insurance was included in the calculation of assets: (7,512 + 250 + 250 – 119) – 5,098 = 7,893 – 5,098 = 2,795.