The Merales Family Diane Morales (Age 35) Diane is an assistant manager at a warehouse. Her annual salary is $45,000. Mike Morales (Age 38) Mike is an educator at a local daycare. His annual salary is $35,000. Children Diane and Mike have two children, Michelle, age 10, and Pedro, age 5 . Residence The Morales family rents a 2-bedroom apartment that is 15 minutes from Mike's job, and I bour from the warchouse where Diane works. Sehools Pedro attends the same daycare where Mike works, and Michelle attends a charter school 15 minutes from bome. Diane drives Michelle to school in her way to the warehouse. Transportation The Morales lease a minivan. The lease expires in 2 months. Public transportation is available in their neighbothood. Retirement Information Mike currently contributes 3% of his salary to his 401(k). The employer matches the 3% for a total of 6%. Banking Mike and Diane have a joint checking and savings account at a large multinational bank that has branches in their neighborhood. There are two other financial institutions in the area: a community bank and a credit union that serves the workers of the factory where Diane works. 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The Morales family household finances. The Morales family makes more money than they spend according to their 2021 statement of cash flows. They even save money every year for the college fund of their children. Do you think their beusehold finances are bealthy? What recommendations do you have for the Morales family to lower expenses and increase savings or investments? Please provide a detailed explanation of your answer and state at least two references to support your recommendations. Make sure that you include the links to websites, videos, and publications, or concrete details on where you found informution to substantiate your answers. No full credit will be given te questions that do not include references. 2. The Morales family credit. The Morales family has two credit cards and pay $4,800 per year to credit card companies in fees. They also pay $1,500 per year for furmiture bought in installments. According to a recent credit report, Diane has a FICO score of 660 and Mike's is slightly better at 695. What do you recommend the Morales family to do to lower their debt and improve their credit sceres? Please provide a detailed explanation of your answer and state at least two references to support your recommendations. Make sure that you include the links to websites, videos, and publications, or concrete details on wbere you found information to substantiate your answers. No full credit will be given to guestions that do not inclade references: 3. The Morales family housing decision. Diane and Mike have always dreamt of having their own house with a yard and a garage and where their children can have their own rooms. They currently rent a small apartment for $2,100 per month. They heard from a friend that interest rates are low and that this is the best time to get a mortgage if they can come up with 20% of the house price for the down payment. They also heard in the news that the Federal Reserve may increase interest rates to lower inflation. The average price of a 3-bedroom bouse in the neighbothood where they live is $3$0,000. Do you think Diane and Mike should buy a house or continue renting? rates to lower inflation. The average price of a 3-bedroom house in the neighbothood where they live is $350,000. Do you think Diane and Mike should buy a house or continue renting? Please provide a detailed explanation of your answer and state at least two references to support your recommendations. Make sure that you include the links to websites, videos, and publications, or concrete details on where you found informution to substantiate your answers. No full credit will be given to questions that do not include references. 4. The Morales family life insurance. Diane and Mike know someone who recently died of covid complications and left his two children in a dife financial situation because he didn't have life insurance. Diane and Make have both life insurance policies, but they want to review their policies to make sure that if something happens to one of them, their family will be covered. Please recommend the Morales family the type of insurance and the amount they need in the unfortunate case that Mike dies. You can use any of the methods suggested in pages 424427 of the textbook to estimate how much life insurance he should carry. Please provide a detailed explanation of your answer, include the methed you use, and state at least two references to support your recommendations. Make sure that you include the links to websites, videos, and publications, or concrete details on where you found informution to substantiate your answers. No full credit will be given to guestions that do not include references. 5. The Morales family retirement plan. A colleague of Diane explained to ber that the sooner she starts saving for retirement and investing those funds, the more she will accumulate when she decides to retiec. Mike contributes 3% of his salary to a 401k account and his employer matches his contribution. Diane doesn't contribute to any retirement plan. Please recommend the Morales family bow to increase their retirement funds and suggest them which retirement account to open for Diane. Include in your recommendation the tax benefits of your suggested retirement accounts. Please provide a detailed explanation of your answer and state at least two references to support your recommendations. Make sure that you include the links to websites, videos, and publications, or concrete details on where you found information to substantiate your answers. No foll credit will be given te questions that do The Morales Family Diane Morales (Age 35) Diane is an assistant manager at a warchouse. Her annual salary is $45,000. Mike Morales (Age 38) Mike is an educator at a local daycare. His annual salary is $35,000. Children Diane and Mike have two children, Michelle, age 10, and Pedro, age 5. Residence The Morales family rents a 2 -bedroom apartment that is 15 minutes from Mike's job, and I bour from the warehouse where Diane works. Schools Pedro attends the same daycare where Mike works, and Michelle attends a charter school 15 minutes from bome. Diane drives Michelle to school in her way to the warehouse. Transportation The Morales lease a minivan. The lease expires in 2 months. Public transportation is available in their ncighborhood. Retirement Information Mike currently contributes 3% of his salary to his 401(k). The employer matches the 3% for a total of 6%. Banking Mike and Diane have a joint chocking and savings account at a large multinational bank that has branches in their neighborhood. There are two other financial institutions in the area: a community bank and a credit union that serves the workers of the factory where Diane works. L.ife Insurance