I need help with 6. E please.

FINS 150 Winter 2021 Financial Planning Case Study The Simpson's Homer (39) and Marge (36) Simpson were married five years ago, only months after graduating from Springfield University. Homer recently received his degree in Nuclear Physics and is employed at Springfield Nuclear power plant, earning $88,500 per year and Marge has a degree in elementary education and works in the education field earning $81,000 per year. They estimate their after-tax income to be about $68,200 and $64,100 respectively. Both feel that their job positions are secure. Homer and Marge have a one-year-old child. Marge has just returned to work after a year's maternity leave. They pay $900 per month in child care costs. They would like to have a second child within the next 3 years but they want to be in their own home before the child is born. The Simpson's currently live in a 2 bedroom townhouse in Springfield that they rent for $2,150 per month. Homer and Marge have been saving $500 per month for the past 4 years for a down payment on their 1" home. They currently have about $35.000 in a joint savings account. They plan on continuing to save $500 per month to increase the amount they put down on the home. They plan on buying a 3 bedroom home near the home they are currently renting. They expect to pay about $500,000. They want to buy the home in 2 years as they want another child in three years and they would like to be in the home before their next child is born. Marge drives a Chevrolet Impala valued at $4.000 and Homer drives a Chrysler Plymouth valued at perhaps $18.000. Homer purchased his Plymouth for $29.000. He financed the purchase with a six-year S29.000 car loan at 5.9%. His monthly payment is $396 and his current balance is approximately $11.000 Homer and Marge have student loan balances totaling $9,000. They pay $120 per month and the interest rate is 6.5%. They also have a $4,500 balance on a joint credit card from last summer's vacation. They are paying $220 per month and the interest rate is 19.9%. Homer has been contributing $195 per month to an RRSP account and his current balance is about $14,500. Marge works for the Springfield Government and is part of the LAPP Pension plan. She contributes 9% of her gross pay to her pension plan. She plans on retiring at age 60 with a full pension. The Simpson's monthly expense include, utilities S200, renter's insurance $50, groceries and household stuff $1,300, clothes budget $325, haircuts and personal care $150, entertainment and eating out $600, health club membership and sports fees $250, hobbies S100, gifts budget $225, charity S100, travel budget $350, auto insurance S120, auto maintenance budget S110, auto fuel and oil changes S650, mise auto $30. The Simpson's have exciting plans for the future. They would like to purchase their 1" home in 2 years. They want to have a second child in three years when they are in their new home and Marge will want to take another year of maternity leave. They want to be in control of their financial future therefore they would like to get out of debt as soon as possible so the only debt they have going forward is their home. They want to be able to take family vacations without putting the trip on their credit card and then stressing overpaying the balance off. They also want to be able to save for their vehicles in the future so they don't have to take on debt. In addition, they know how valuable their university education is for themselves and they want to be in a position to pay for their children's tuition for 4 years of university. The Simpson's feel good about how they have managed their money to date. However, they are not sure what they should be doing to make sure they can achieve their goals and they don't really know if what they have been doing is what they should be doing. They have come to you looking for help in creating a financial plan. 6) Financial Plan a) Budget and Debt Management b) Risk Management (Insurance) c) Investment d) Retirement e) Estate