John and Mary, both 45 years old, are married and have one child, age 10. They plan to pay for his college at an in-state university from age 18 to 23 and they would like to retire at age 62. They have provided the following financial data.

Joint employment income $200,000 Johns 401(k) plan contributions $16,500 Marys IRA contributions $3,000 Johns 401(k) plan employer match $5,000 Annual gifts from Johns parents $10,000 Total Investment Assets $380,000 Total Cash and Cash Equivalents $100,000

From the goals and data given, which of the following statements is/are correct? (Do not make assumptions that are not stated)

1. John and Marys investment assets to gross pay ratio is adequate for their age. 2. John and Marys savings rate is appropriate for their goals.

a. 1 only. b. 2 only. c. Both 1 and 2. d. Neither 1 nor 2.