prathod0604

prathod0604

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prathod0604Florida International University

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Roy Bemmer, 54, has lots of concerns about his finances such as "should I chance taking

$5,000 and investing it aggressively?" and "How well am I able to retire at age 60 or 62?" Bemmer is also very concerned about unemployment. His income last year was $83,866, but he expects to earn only $27,000 this year. Earlier this year, he was downsized and

took early retirement in order to keep his medical benefits. He was also laid off previously in the late 1990s. Right now, he is living "paycheck to paycheck."

 

Bemmer is currently working in a series of temporary jobs with variable hours, so his monthly income is unpredictable. His financial goal for the near term is to save as much as possible for retirement and accumulate liquid assets in case he becomes unemployed again. Within ten years, he wants to purchase a new $25,000 vehicle and take vacations costing $3,000 to $5,000 per year. After that, retirement is on the horizon. Bemmer would like to live off his investments and Social Security.

 

Fortunately, Bemmer has accumulated significant assets to help achieve his goals. His net worth is $700,200. This includes $406,172 in a former employer's 401(k), $102, 413 in seven different mutual funds, $5,750 in savings and checking accounts, and $25,865 in

14 certificates of deposit. Approximately 90% of Bemmer's portfolio is invested in growth or growth and incomemutual funds, including five different Vanguard funds and five different Fidelity funds. Bemmer's $110,000 house is owned free and clear, along with $30,000 of property and a $20,000 car, and he has no other debts.

 

Bemmer's monthly expenses were not listed. He did note, however, that he put 15% of his salary, when he was working, into a 401(k). Currently, he invests all surplus funds in two Vanguard index funds. Bemmer's financial data is meticulously kept in a series of computer-generated tables. He is single, lives alone, and has no financial dependents.

 

As for insurance, Bemmer has $14,000 of life insurance. His former employer pays all but $24 a month toward the cost of major medical health coverage and he has $500,000 of auto and homeowner's liability. He has never had disability coverage and wonders if he should buy a long-term care insurance policy since he will have nobody to care for him when he gets older. Bemmer has a will that was last reviewed in 1994.

 

Give 5 financial recommendations

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John, a healthy twenty-eight year old electrical engineer, was driving home from work one evening when he experienced sudden stabbing pain in his right pectoral and right lateral axillary regions. He began to feel out of breath and both his respiratory rate and heart rate increased dramatically. As luck would have it, John passed a hospital each day on his way home and was able to get himself to the hospital’s emergency room.

The emergency room physician listened to John's breathing with a stethoscope and requested blood gas analysis and a chest x-ray. John answered a few of the doctor's questions. The doctor noted that John had no history of respiratory problems but was a heavy smoker.

After viewing the chest radiograph, the doctor informed John that he had experienced a spontaneous pneumothorax, or what is commonly called a collapsed lung. The doctor explained that a hole had opened in John's right lung and that this hole had allowed air to leak into the cavity surrounding the lung.

Then, as a result of the lung's own elastic nature, the lung had collapsed. The doctor said he could not be certain of the cause of the pneumothorax, but smoking cigarettes had certainly increased the likelihood of it happening. He told John he was fortunate the pneumothorax was small, which meant that relatively little air had escaped from the lung into the surrounding cavity, and it should heal on its own.

He instructed John to quit smoking, avoid high altitudes, flying in non-pressurized aircraft, and scuba diving. He also had John make an appointment for a re-check and another chest x-ray.

Case Background

The pneumothorax decreases the efficiency of the respiratory system, which in turn results in decreased blood oxygen concentration, increased respiratory rate, and increased heart rate. If the pneumothorax is small, the air that escapes into the pleural cavity can be reabsorbed into the lung once the opening has sealed shut. If the pneumothorax is large, a needle or chest tube may have to be inserted into the pleural cavity to draw the air out and allow for the re-expansion of the lung.

 

Questions

1.       Define the following terms and explain how they may have been affected by John’s spontaneous pneumothorax.

a.       Visceral pleura

b.       Parietal pleura

c.       Pleural cavity

2.       As a result of a pneumothorax, the lung tissues recoil, and the lung collapses. Explain how recoil and collapse are prevented in a healthy lung?

3.       How does elastic recoil function in breathing?

4.       Why was John instructed to avoid high altitudes and flying in non-pressurized aircraft?


     

 

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