jim and jackie are married with three children at home and a mortgage. jims net pay per year is $67,000 and…

jim and jackie are married with three children at home and a mortgage. jims 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 jackies 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.

jim and jackie are married with three children at home and a mortgage. jims 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 jackies 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.

Answer

Brief Explanations:

Jim and Jackie have a single - income household. They have significant monthly expenses ($2,800 mortgage + $2,700 additional = $5,500 per month). Jim contributes 15% of his earnings to a retirement fund. Their savings of $5,000 may not be sufficient to cover unexpected events or short - term financial needs. Liquidity refers to the availability of cash or easily convertible assets to meet short - term obligations. Their relatively low savings indicate a need to work on managing liquidity.

Answer:

b. They should work on their plan for managing their liquidity.