Assets are stated at fair market value.
Liabilities are stated at principal only as of January 1, 2015 (prior to January payments).
The home and land were financed with a $350,000 loan, seven years ago at 5 percent over 360 months.
They typically spend about $1,000 per month on each credit card, but the balances are higher after the holidays. They do not maintain these balances.
The Ram truck was financed with a loan of $30,000, six months ago at 3 percent over 48 months.
Mike’s brokerage account is highly correlated to the market. In fact the account has a correlation with the market of about 99 percent. However, because Mike has some leveraged mutual funds in the account, the beta of the portfolio is approximately 20.