Question 2

The Jones, Jenny and Kevin, ages 41 and 40 respectively, have 2 children aged 10 and 14. Jenny is a high school teacher earning $110,000 per annum plus 12.5% superannuation and Kevin runs a home maintenance service. Kevins business has been growing quite steadily and currently produces an annual income of $53,000. Kevin does not contribute to superannuation. The Jones own their house, which is valued at $1,000,000. Their mortgage is $650,000. They have two cars, a current model Prado and a 7-year-old Honda. Identify and discuss the various risks to which the Jones are exposed and what they can do about it. (10 marks)