You are being asked to write a final letter of recommendation to your clients.  This is the capstone letter for the capstone class.  This assignment is also used to evaluate the Financial Planning Program.  Please pay attention to detail and review the rubric before submitting.  Make sure you address the following:

1) Introduction and restatement and summary of their personal and financial objectives as found in the case.

2)  Summarize the current asset allocation for the assets you have information on (High Tech Stock, Bond Mutual Fund, Bond Brokerage Account, Equity Brokerage Account, Brown Foreman Stock, and Stock in Crescent Publications).  Create a pie chart that shows their current asset allocation.

• Assume Bond Mutual Fund is a corporate bond fund
• Assume Auto and Oil Company are Large Cap  Equities
• Assume Brown Foreman is large cap equities
• Assume High Tech and Crescent publications are small cap equities
• Remember when we refer to assets allocation as 20/80 the first number is the amount in equities.
• Please put your percentage and description on the pie piece not as a legend below.

You need to do a spreadsheet to complete this analysis.  I will show you the first few entries.  Sum the columns and use then compute the % for your pie charts.

3)  Recommend an asset allocation based on the information in the case make sure you use 5 unique asset classes. Mutual funds are not an asset class!  Large Cap Equities is an asset class.  Include a pie chart!

4) Indicate the tax ramifications of liquidating the bond mutual fund.  Indicate the gains or losses and whether they will be short-term or long-term. 

Key questions:  What is the cost basis of an asset after death? What impact do reinvested dividends have on cost basis?

5)  Create a chart that summarizes the amount in Mary's gross estate and probate estate if she were to die. Recommend any improvements that can be made to avoid probate for the probate assets.

Key Questions:  Is life insurance included in the gross estate?  In the probate estate?  What value is included death benefit or cash value (not both)?  Are we assuming she dies?

6)  Review the life insurance they currently have.  Do they have sufficient insurance based on the basic "rules of thumb" for appropriate life insurance coverage?  Do they have the right types of policies?  Are there any issues with their beneficiaries?  Recommend any changes to their life insurance.

Key Questions:  Are the rules of thumb appropriate given their wealth level?

7)  Recommend an approach for saving money for retirement.  Make sure you consider any phaseouts that apply based on the availability of company plans.  

Key Questions:  Will their IRA contributions be deductible?  Can they contribute to a Roth IRA based on their income and the income phaseout?  What type of plan can he use?  What type of plan can she use?

8)  Close with a summary of the next steps, your role, the client's role, and the follow-up approach.

Remember, your client will hire you based on your ability to address their needs, quality of advice, and professionalism.