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?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.

Which of the following would you list under cash inflows in a financial plan?a.You took a friend to lunch.b.You received a bonus at work.c.You got a discount on a new computer.d.You paid interest on a loan.

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 _____. a. financing b. managing his investments c. managing his liquidity d. protecting his assets Please select the best answer from the choices provided

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.)a.$176b.$624c.$778d.$800

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.)a.$176b.$624c.$778d.$800

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?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.

By examining the spreadsheet below, what part of the financial plan might be missing? a. plan for managing income b. plan for financing c. plan for protecting assets d. plan for retirement Please select the best answer from the choices provided

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

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