Family composite case #1. How are your personal investing and planning skills? I spend a lot of time writing, extolling, exhorting, and postulating on the way individuals and families should, could, might, and ought to plan their finances and investing for the future.There are weeks, I am sure, when you are just a bit tired of me standing on the soap box.So, here is your chance to take over, comment, speculate, dismiss, or seriously suggest a course of action for this composite family.If you are interested in trying your hand at financial planning, or would like to point out how you disagree with me, feel free to add your opinion to the bottom of this article once it is posted on The Royal Gazette website.This week, here is our family of four composed of two adults and two children:Mr. and Mrs. Bermuda. Husband and wife — ages 50 and 42, both work full-time, one is in successfully stable employment (she is sure).Hubby thought his was just fine, but now he is having real doubts about the viability of his job.There is an undertone of urgency at the office.He thinks redundancy may be a real issue in the near future.Both of them earn about the same compensation, but hubby is feeling the stress of the times and it is being reflected in his physical well-being.Two children, ages 2 (in day care) and 10 (in private school like more than 60% of Bermudian children). University coming sooner than they think. Children are expensive.They need, they outgrow, they want to be participants in their school activities. It all costs.Assets. They and the bank own their home.It was purchased four years ago (at the height of the inflated Bermuda real estate market, they now ruefully realise).They managed to scrape together down payment by borrowing from relatives and the Bank, but the mortgage still looms larger than life.Investments. Besides their modest Bermuda pensions, untouchable at this time, there are a couple of small mutual funds, one in the Asian sector they bought eight years ago — which then promptly tanked, and some local Bermuda company shares, also completely underwater.They have basic investment understanding, and have chosen aggressive funds — but have neither time or inclination to follow through — haven't looked at their pension balances in years.Cash. They have some savings, maybe enough for year's worth of household expenses.Budget — there isn't one. They honestly have little control of where the day-to-day cash is spent.Mr B is more concerned about having enough for retirement — than paying down the principal on their mortgage — at present, Mrs. Spouse feels differently.They have very small term life insurance policies, only through their jobs.No willsHer Mom is in poor health, no longer can be employed, and needs supplemental help from them to cover her health insurance costs..She does own her home, but has no funds to keep up the maintenance.With all these concerns in the forefront, their beloved Granny Rhonda, after a long life, leaves them for her great reward in the sky.She has left them a little windfall. What do they do with this lovely gift?It isn't a fortune, but still they want to invest it carefully and conservatively.They cannot agree on what course of action to take to insulate them from a possible job loss, let alone what to do with their small legacy from Granny.What should they do?Save the money for retirement.Pay down the mortgage.Buy life insurance.Invest in a variety of equity funds that will grow the savings faster than a term deposit.There may be more than a few coincidences here.Some of you may have friends or relatives in the same situation.What would you recommend to this couple?They have to do something, or maybe they just do nothing and hope?Should Mr. Bermuda be looking for another position? What should they do if there are no current job prospects in his field?How optimistic or pessimistic to you feel about the economy?What do you think the short and long term growth prospects for Bermuda are?What will the budget for this family look like in two years, three, and five?These are some of the projections you need to entertain, if you are going to provide objective reasoned advice.What is your recommendation?Is there a workable answer? Do we need more information from Mr and Mrs Bermuda than is currently available?Next week, I look forward to your planning solutions, and will add some of my own.As stated above, feel free to comment directly beneath the article on the RG website.The article expresses the opinion of the author alone. Under no circumstances is the content of this article to be taken as specific individual investment advice, nor as a recommendation to buy or sell investment products, nor as a promotion for financial plans.Martha Myron, CPA CFP®(USA) TEP (UK) JP is an international Certified Financial Planner™ specialising in international tax, retirement, and cross border planning and business strategies for Bermuda residents with US connections, and US citizens living and working abroad.Member of AICPA and the American Citizens Abroad Professional Tax Advisory Council. www.americansabroad.org Contact mmyron@patterson-partners.com or 1 441 296 3528 at Patterson Partners Ltd., Hamilton, Bermuda