Case Study; Journal Entry

You have just finished your telephone meeting with Elizabeth, who was very appreciative of your advice for her finances once the divorce is finalized. She realizes that her lifestyle will change and is willing to make the adjustments necessary.
Your suggestion, at this point, is that you look at Elizabeth’ tax and insurance positions and return to her in a week with your suggestions. You feel that she needs to be confident that she is appropriately insured and that she is minimizing her personal tax position as best she can. Always keeping in mind her disposable cash.
You will need to take into account that she is responsible for her young son and that she owns her own business, though Elizabeth has been very clear that she does not want your help with her business finances! Are there strategies that she should use from a personal perspective because she is a small business owner?
What personal products should she have to help minimize her personal tax position?
What insurances would you recommend keeping in mind the budget and income statement that you have for her post-divorce finances?

Sample Solution