Financial Planning Report: Eric and Jayne Ryan Case Study Analysis

This report provides a financial analysis of Eric and Jayne Ryan, a couple with a mortgage and existing investments. The analysis considers their current financial profile, including their children's independence and lack of debt, to determine the best course of action for their excess disposable income. The report evaluates two main options: accelerating mortgage payments or investing in a regular savings plan. It weighs the advantages and disadvantages of each, considering the potential for returns from growth and income assets. The conclusion recommends a balanced approach, suggesting the couple allocate their excess income between both strategies to secure their assets and achieve their financial goals. The report emphasizes the importance of long-term investment and the potential risks associated with putting all funds into growth assets. The report concludes with a recommendation for a balanced approach to manage their finances effectively.

Financial Planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................4

INTRODUCTION
Financial planning implies for the process that provides high level of assistance to the
individual authority in meeting goals through ensuring effective management of funds. It enables
concerned authorities to invest money in the suitable opportunities by doing evaluation of both g
current and future options available. The present report is based on the case situation of Eric and
Jayne Ryan which will shed light on the risk profile of them. Besides this, it also entails whether
such couple should start a regular saving plan or make focus on paying off mortgage.
MAIN BODY
On the basis of cited case situation, Eric and Jayne Ryan have 3 children and have been
married for 20 years. Case scenario clearly entails that couple has a mortgage of $80000 and also
hold a mixture of growth & income assets amounted to $70000 respectively. Current profile of
the couple shows that they are balanced investors. Along with this, given summary of Eric and
Jayne Ryan presents that two children of them are independent, whereas the last one is just about
to graduate and will start job in 2018. Referring such situation, it can be stated that excess
disposable income of such couple will be related to the third child. In other words, it can be
depicted that in 2018 third child will work as an independent entity. Thus, they do not need to
incur any expense on third child or others. Further, case also presents that both the entities do not
have any debt. Hence, now children of such couple has grown up and left home so they are
recognized as empty nester. Thus, by taking into account all the above aspects it can be stated
that such couple has some excess disposable income that can be invested by them in other
profitable opportunities.
Further, from evaluation, it has identified that Eric and Jayne has two options either make
payment of mortgages faster or start to invest money in the regular savings plan of their managed
fund. In this regard, before making selection of opportunity both the entities need to make
evaluation of cost and related benefits. Moreover, in the context of growth and income assets
concerned authorities have to wait for longer time in relation to generating high returns (Bačová
and et.al., 2017). Benefits and drawbacks which are associated with the different options are
enumerated below:

Mortgage payment
 Advantages: Enables or offers opportunity to the concerned authority in relation to
getting back assets (Boehm and Schlottmann, 2017).
 Disadvantages: As per the situation, mortgage payment is $80000 so if Eric and Ryan
will use whole excess disposable income for meeting obligations regarding to the same
then they would not become able to generate higher returns through other investment.
Investment of excess income in regular saving plan
 Advantages: Growth and income assets portfolio enables couple to get higher returns in
long run (Rossouw, 2016).
 Disadvantages: In this, to generate expected or target return couple has to wait for longer
time period.
By taking into account all the above depicted aspects it is suggested to Eric and Jayne
Ryan to use excess disposable income in both regular saving plan and making payment of
mortgage. Moreover, in the growth and income assets there is no guarantee that such entities will
generate fixed or enough return. Moreover, after recession economy is recovered to a great
extent and will rise in the upcoming time period. In this, if such couple will use whole excess
income in the growth funds then there is a risk that they lose funds and not become able to make
payment of mortgages on time. In other words, if both the entities will lose money then they
would not be in position to get back assets in against to which money was borrowed. Thus, for
attaining enough returns and meeting liability on time Eric and Jayne Ryan should focus on
investing 50% funds in regular saving plans and remaining needs to be used in fulfilling
obligations regarding to mortgage. By either collecting funds for mortgage payment or paying in
the form of installments Eric and Jayne Ryan can get back mortgaged asset on time.
CONCLUSION
By summing up this report, it has been concluded that excess disposable income of the
couple increased over the time frame. Moreover, now couple has no dependents and they do not
owe any responsibility regarding the expenses of their children. Besides this, it is recommended
to the couple to make focus on start a regular saving plan which in turn offers fixed income to

them. Along with thus, it is recommended to the couple to make focus on holding investment for
longer duration which in turn offers higher return.

REFERENCES
Books and Journals
Bačová, V. and et.al., 2017. Financial Planning for Retirement in Young Adults: Interaction of
Professional Experience, Knowledge, and Beliefs. Studia Psychologica. 59(2). p.84.
Boehm, T. P. and Schlottmann, A. M., 2017. Mortgage Payment Problem Development and
Recovery: A Joint Probability Model Approach. The Journal of Real Estate Finance and
Economics. 55(4). pp.476-510.
Rossouw, J., 2016. The benefits of using a trust for your financial planning: industry
issues. Stockfarm. 6(7). p.17.