Case $1$

The Johnsons Embark on a Solid Investment Program

After nearly $14$ years of marriage, Harry and Belinda's finances have improved, even though they have incurred debts for an automobile loan and a condominium. Plus they now have a five$-$year$-$old son, Benjamin. They have not yet saved enough for retirement, so they want to catch up$.$ Harry's retirement account at work is currently worth only $$44,000$ and Belinda's at her workplace is valued at $$105,000,$ and they do have $$24,000$ in investments outside their employers' retirement plans.

The Johnsons have decided to seriously forgo some current spending for the next three years to boost a solid investment program under way while they still have two incomes available and before they expand their family. In addition to continuing their contributions to their retirement programs at work, they are willing to accept a moderate amount of risk and expect to invest $$800$ per month over the next three years.

Julia Price's Go

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$($b$)$ In what types of investments might they place the second $$9,600?$ Why?

$($c$)$ What types of investments should they choose for the third $$9,600?$ Class Activity Why? and $414$

C

$($a$)$ In what types of inve ments $($choose only two$)$ might the Johnsons Peview Figurest annual installment of $$9,600.$ Figures $13-1$ on page $412$ and $13-2$ on page $415$ for ideas and available options. Give reasons for your selections.

$(b)In$ what types $of$ investments

might they place the second

$$9,600?$ Why?

$(c)$ What types $of$ investments should Class Activity

they choose for the third $$9,600?$ Pages $412$

Why?