Bruce and Faith Johnston, $64$ and $58,$ are preparing for retirement within two years. Other

short$-$term financial goals of theirs are to pay off almost $$12,000$ of outstanding debt on

credit cards and spend $$5,000$ on an engaged daughter's wedding. They'd also like to pay

off their $$75,000$ mortgage, which has $9$ years remaining. Within the next $3$ to $10$ years,

they'd like to buy a new car, travel, and make several home improvements. Bruce stated

their long$-$term goal as follows: $"$to be alive and enjoy life with sufficient funds to

survive."

Both spouses are employed and, together, earn $$68,000$ annually or gross monthly

earnings of $$5,666.$ They estimate their monthly household expenses to be $$3,500,$

including $$850$ for mortgage principal and interest, $$400$ for property taxes, $$300$ for

utilities, $$250$ for insurance, and $$278$ for a brand new car loan with $48$ payments

remaining. They had a "late parenthood" and are currently subsidizing living expenses for

two children in their $20$s$.$ The monthly cost of these expenses is estimated at about

$$1,000.$

The couple's net worth $($assets minus debts$)$ is $$456,990.$ On the asset side, the Johnstons

have no cash assets whatsoever, such as a bank savings account or money market mutual

funds. What they do have are their $$230,000$ house, $$235,000$ in Bruce's company profitsharing

plan, two cars worth $$22,000,$ and $$73,000$ of personal property. On the debt side,

they owe $$75,000$ on their mortgage, $$13,344$ for the car loan, $$11,666$ on credit cards,

and $$3,000$ on a PLUS loan for a child's college expenses.

Bruce's employer provides health insurance for the couple for a premium payment of

$$108$ per month. He will soon become eligible for Medicare at age $65,$ so the employer

coverage will become a secondary payor for him. The employer will also continue to

provide health benefits for Faith, but for an increased premium of $$352($current price$)$

once Bruce retires. Neither spouse has disability insurance, nor does the couple carry an

umbrella liability policy. Their home and car have coverage with $$300,000$ liability

limits$.$

Both spouses have wills that were last reviewed five years ago. They have recently been

told by their attorney to get a living will and power of attorney. There is the potential for

the couple to receive an inheritance of about $$150,000$ from Faith's $88-$year old father. As

for other sources of retirement savings, neither spouse has an individual retirement

account $($IRA$)$ or any type of tax$-$deferred retirement savings plan, although Faith's employer offers a $401($k$).$

can you develop a $$solution$$ a road map advice for the families described in the cases.

Make sure your paper identifies most of the key variables involved in becoming financially independent, and explain the importance and significance of each of those key variables.