bp westwood - case study for may 2015 meeting

Client: Joe and Josephine Bruin. He's 52; She's 51. They have three children, ages 15,
17 and 23.
Personal: They live in a $1M home with a mortgage of $400K.
Financial: Mutual Fund investments of $100K; no savings for college for the two
younger children
Life Insurance: He - $250K Term; She - None
Business - His: Sons of Westwood; he's a 50/50 owner with his brother (a handshake
partnership). They make widgets. Annual sales of about $2M (growth of about 20%
per year). There are 9 employees, but no pension, profit-sharing or health plan. There
is no succession plan in place.
His business detail: Widgets are made overseas and imported. High employee
turnover. He does not get along with his sister-in-law. He has had problems in the past
with customers who pay their invoices late
Business - Hers: 50% owner of an 4 - unit apartment building with her sister. Title is
JTWROS. They received it as an inheritance from their late father. FMV - $1.8M. No
debt. Total Cash flow is about $72,000 per year.
Her business detail: Worried about people getting injured at property and what
happens if one of them (the sisters, not the people renting) should die.
Personal/Family Detail:
23 year old is a professional and has fiance;
Retirement goal is age 65 (his age)
Home Mortgage - 23 yrs left @ 6.5%
No college savings in place for 2 kids
Assignment: Based on this fact pattern, how might you be able to help Joe and
Josephine Bruin? If you need to have more information before you can help them,
please tell us what information you need and why (not before the meeting; at the
meeting). Under a worse case scenario, make it up.
You will have no more than 2 min. to discuss