After graduating from college, Alice has an immediate focus on earning income to provide for living expenses and debt (student loan) obligations. Within the next decade, she foresees having a family; if so, she will want to purchase a house and perhaps start saving for her children's educations. Her income will have to provide for her increased expenses and also generate a surplus that can be saved to accumulate these assets. In the long term, she will want to be able to retire and derive all her income from her accumulated assets, and perhaps travel around the world in a sailboat. She will have to have accumulated enough assets to provide for her retirement income and for the travel.

Alice's assets may be a car worth about $5,000 and a savings account with a balance of

$250. Debts include a student loan with a balance of $53,000 and a car loan with a

balance of $2,700;

Use the S.M.A.R.T. planning model and information to evaluate Alice's goals (below). (Specific, Measurable, Attainable, Realistic, and Timely)

a. pay off student loan

b. buy a house and save for children's education

c. accumulate assets

d. retire

e. travel around the world in a sailboat.

Discuss your evaluations.