|
In the
Line of Fire
by Paul Keegan
January 10,
2008
[Continued,
page 3]
THE
BOTTOM LINE
The
Martins need to figure out how best to use their insurance settlement
while working to get out from under the crush of mortgage debt.
| +
INCOME |
Kevin
and Nicole's earnings |
$145,410 |
Insurance
tapped for expenses |
50,000 |
TOTAL |
$195,410 |
| -
OUTGO |
Mortgage
(home, condo) |
$84,150 |
Savings |
24,300 |
Taxes
(property, income) |
21,750 |
Apartment
rent |
18,000 |
Car
(loan, maintenance) |
13,440 |
Utilities
(including phone, cable) |
8,520 |
Entertainment,
kid's activities |
7,760 |
Groceries |
7,200 |
Clothes,
household items |
6,980 |
Insurance
(home, car, life) |
3,310 |
TOTAL |
$195,410 |
| +
ASSETS |
Ins.
settlement (minus expenses) |
$1,087,000 |
Land
value |
600,000 |
Condo
hotel suite |
523,000 |
Retirement
accounts |
203,000 |
Stocks |
107,000 |
Cars |
45,000 |
Savings |
20,000 |
TOTAL |
$2,585,000 |
| -
LIABILITIES |
Home
mortgage |
$1,000,000 |
Condo
hotel mortgage |
230,000 |
Car
loans |
35,000 |
TOTAL |
$1,265,000 |
| =
NET WORTH |
$1,320,000 |
Back
at the ruins of their former life, the Martins are starting to
get excited about building a new home—after they finish
wrangling with the insurance company. "I'd like to have a
three-car garage and a workshop," Kevin says, tromping through
the wreckage. "Here we'll have stairs going up to two bedrooms
for the kids, a bathroom and maybe a loft..."
The
Martins are grateful for the advice from Kehrer and Schweiger
and have begun the painstaking process of itemizing all their
lost belongings. But Kevin has little interest in selling the
suite at the Hard Rock, which he's convinced will pay off in the
long run. In other areas, though, he's now not nearly as prone
to taking risks. For one, he has promised not to laugh at his
daughters next time they pack their bags and leave them by the
door.
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The
opinions and views expressed in this publication are for general
information only and are not necessarily those of Mutual of America
Life Insurance Company.
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