The correct option is that they should work on their plan for managing income.
<h3>How to illustrate the information?</h3>
Given that Jim and Jackie are married with three children and have a home at mortgage.
The net pay per year of Jim is $67,000 and Jackie do not earn at all. The mortgage expenses and monthly expenses are
$(2,800+2,700) = $5,500, not much as compared to the total income.
Also, Jim contributes 15% of his income , i.e., $10050 into the retirement fund and also they have savings of $5,000.
In addition, there is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie.
Therefore, looking at all of these, it can be concluded that the net income of Jim per year is not bad at all to manage the expenses, they just have to work on it little more to run the family smoothly.
Thus, the correct option is that they should work on their plan for managing income.
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Complete question:
Jim and Jackie are married with three children at home and a mortgage. Jim’s net pay per year is $67,000 and Jackie does not have income. Their mortgage payment of $2,800 includes insurance on their home. They have additional monthly expenses of $2,700. Jim contributes 15% of his earnings to a retirement fund and they have $5,000 in savings. There is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie. As their financial advisor, what part of Jim and Jackie’s financial plan would you encourage them to work on? a. They should work on their plan for managing income. b. They should work on their plan for managing their liquidity. c. They should work on their plan for protecting their assets. d. They should work on their plan for protecting their income.
