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Be a Financial Planner—Discussion Case 2

This case is available in MyFinanceLab.

Bronwyn Lipper, a 2009 graduate with a degree in biochemistry, has a promising career ahead of her. Already, her employer has offered to pay for graduate school, and in the past 2 years she has been promoted three times. Three years ago she purchased a townhouse for $210,000 in Laurel, Maryland. Today, her townhouse is valued at over $270,000. More recently, Bronwyn purchased a new Ford Escape hybrid. She appreciates the energy savings and the safety the SUV gives her on her 45-mile round-trip commute into Baltimore. Overall, Bronwyn feels economically secure. She has over $35,000 in savings and growing retirement accounts. On her drive home from work last night she heard a radio report of a person who lost everything when he caused an auto accident and was underinsured. Bronwyn certainly does not want this to happen to her. Help her consider the following questions and issues.