1. Describe the stage in the adult life cycle (Exhibit 1-1) that Jamie Lee and Ross are experiencing right now. What are some of the financial activities that they should be participating in at this stage?

2. After reviewing Jamie Lee and Ross’s current financial situation, suggest specific and measurable short-term and long-term financial goals that can be implemented at this stage. 

3. Using the investment goal guidelines, assess the validity of Jamie Lee and Ross’s short and long-term financial goals and objectives.

4. Using the formula for allocating investments and the risk involved, assess how much of Jamie Lee and Ross’s assets should be allocated to higher-risk growth investments? How should the remaining investments be distributed and what is the associated risk?

5. Jamie Lee and Ross need to evaluate their emergency fund of $21,000. Will their present emergency fund be sufficient to cover them should one of them lose their job?

6. Jamie Lee and Ross agree that by accomplishing their short goals, they can budget $5,000 a year towards their long-term investment goals. They are estimating that with the allocations recommended by their financial advisor, they will see an average of 7 percent on their investments.