As their financial advisor, the part of Kyle and Linda’s financial plan they should work on is d. Their plan for protecting their assets. They should have life insurance on Linda.
<h3>What should they work on?</h3>
Kyle and Linda need to make sure that their assets are protected in case of an emergency. Linda is an asset because she earns more in the marriage.
There is therefore a need to protect Linda and the best way to do so is to get a life insurance policy on her.
This would ensure that if anything were to happen to Linda, the family would still be taken care of.
The full question is:
Kyle and Linda are married with two children at home and a mortgage. Kyle's net pay per year is $32,000 and Linda's is $48,000. Their monthly expenses are $3,500. Kyle and Linda each contribute 15% of their earnings to a retirement fund and they have $5,000 in savings. They also have a $100,000 life insurance policy on Kyle, but none on Linda.
As their financial advisor, what part of Kyle and Linda’s financial plan would you encourage them to work on and why?
Options include:
- a.Their plan for managing income. Their net cash flow is negative.
- b. Their plan for managing their liquidity. They are not prepared for emergencies.
- c. Their plan for retirement. They don’t contribute enough to meet their long term goals.
- d. Their plan for protecting their assets. They should have life insurance on Linda.
Find out more on protecting assets at brainly.com/question/1378181.
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