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 $3,000. 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 their financial advisor. What part of Kyle and Linda’s financial plan would you encourage them to work on and why?
a) Plan for managing net cash flow
b) Plan for managing their investments
c) Are not prepared for emergencies
d) Should have life insurance on Linda.
