Mariah is single and has a monthly disposable income of $3,200. Her monthly cash outflow is approximately $2,800. Mariah includes contributions to a retirement plan and money for investments as part of her cash outflow. She has car insurance and a life insurance policy. Mariah has saved $15,000, but wishes to use $10,000 for a down payment on a house. She has also purchased furnishings for a house, which she has in the spare bedroom of her apartment. Mariah hires a financial planner to examine her money management, and he determines that her plan needs work. What part of Mariah’s financial plan would he encourage her to work on and why?
a.
Her plan for managing income. Her net cash flow is negative.
b.
Her plan for managing her liquidity. She is spending all of her savings on her down payment.
c.
Her plan for retirement. She does not have a retirement plan set up.
d.
Her plan for protecting her assets. In case of an emergency, she should have renters insurance for her apartment.
Please select the best answer from the choices provided
Answers
Answered by
10
Answer:
answer .c
for this question
Answered by
7
Given:
monthly disposable income of $3,200.
Mariah has saved $15,000, but wishes to use $10,000 for a down payment on a house.
To Find:
Suggestion of the financial manager.
Solution:
Since, her monthly income is limited and the financial planner will make a plan keeping her income as the basis of his plan.
Alteration in income is a difficult task hence,the planner can't ask for managing her income.
Moreover, she also has a retirement plan hence she need not worry about her future .
The financial manager will surely suggest her to manage her liquidity keeping in mind the limited income and the way she spends all her savings in the downpayment.
b.Her plan for managing her liquidity. She is spending all of her savings on her down payment
Similar questions