Alex (age 36) and Maria (age 38) have been married for 12 years, and they have three children, Jose (age 10), Anna, (age 12) and Caridad (age 14). The Smiths live at 5389 East Red Hawk Drive, Jacksonville, Florida. Alex currently works as an assistant manager at a department store, where his salary last year was $65,300. Marias substitute teaching only added $2,000 last year to their income. Last year, Alex did 15 tax returns for others and made $1,500. They own a house with a 30-year, $302,000 mortgage at 6%. Their monthly principal and interest payment is $1,810. The house was appraised at $350,000 and they currently owe $300,000. Alex and Maria have $3,000 in a jointly held savings account at a local bank. They have jointly owned personal propertyclothing, jewelry, furniture, etc.valued at $45,000. Maria just inherited antiques worth $23,000. Alex has a car with a 5-year loan at 9%, and his monthly payment is $560. The car is currently valued at $8,000 and the balance on the note is $15,000. Maria has a minivan financed over five years at 9%. Her monthly payment is $622. The van is valued at $13,000 and the balance on the note is $20,000. Maria has a rollover IRA worth $25,000. The IRA holds: $10,000 in an S&P 500 Index Fund and $15,000 in an Intermediate Term Bond Fund. They have another $20,000 on their credit cards. Annual household expenses include: Property Tax $2,785 Homeowners Insurance $350 Utilities $1,200 Telephone $745 Auto Insurance $925 Credit Card Payments $3,872 Cancer Insurance Policy $600 Income Taxes $11,850 Food $3,620 Medical/Dental $3,800 Clothing/Personal Care $980 Gas / Oil / Maintenance $1,097 Entertainment/Vacation $1,072