The Financial Plan Answers

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?

Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____.

Which of the following would you list under cash inflows in a financial plan?

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for _____.

Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month. Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara’s monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.)

Which of the following would you list under cash inflows in a financial plan?

By examining the spreadsheet below, what part of the financial plan might be missing?

If your expenses are more than your income, then you have a positive net cash flow.

Based on the spreadsheet below, what is the net cash flow?

Create an example of a situation where there is a negative cash flow.

Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____.

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?

If your expenses are more than your income, then you have a positive net cash flow.

By examining the spreadsheet below, what part of the financial plan might be missing?

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara’s monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.)

Based on the spreadsheet below, what is the net cash flow?

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for _____.