Tipper visited a Lexus dealership just days before consulting you and is planning to return to the dealership at the end of the week. She has excellent credit (780 credit scores) and expects she could secure the best interest rate. The car she was interested in would carry a $800 monthly note for a 60- month term. She was told she could secure a 1% interest rate. Tipper's company offered no pension plan but did offer a 401k plan 6 percent contribution and a 6% match. Tipper was concerned that she couldn't afford to contribute to her 401K plan because she wanted to purchase a home. After all she was in her early 20s and had plenty of time to think about retirement. Therefore, retirement is not her priority. Michael works for a school district and receives a teacher's retirement. He pays 7% of his income into the retirement program and the school pays an equal amount to the retirement plan. Michael has few bills other than his student loans as he still drives the Honda he start college with worth $4000 with no balance. It was paid for as his parents bought it for him as a high school graduation gift. Like Tipper, Michael's loan payment will also be $1666 montly. They currently live in an uptown apartment and the market rent is $3800. They average $500 a month on their utilities and they eat out to the tune of $1000 per month. They have minimum whole life insurance that would only pay for the funeral expenses. Tipper visited a Lexus dealership just days before consulting you and is planning to return to the dealership at the end of the week. She has excellent credit (780 credit scores) and expects she could secure the best interest rate. The car she was interested in would carry a $800 monthly note for a 60- month term. She was told she could secure a 1% interest rate. Tipper's company offered no pension plan but did offer a 401k plan 6 percent contribution and a 6% match. Tipper was concerned that she couldn't afford to contribute to her 401K plan because she wanted to purchase a home. After all she was in her early 20s and had plenty of time to think about retirement. Therefore, retirement is not her priority. Michael works for a school district and receives a teacher's retirement. He pays 7% of his income into the retirement program and the school pays an equal amount to the retirement plan. Michael has few bills other than his student loans as he still drives the Honda he start college with worth $4000 with no balance. It was paid for as his parents bought it for him as a high school graduation gift. Like Tipper, Michael's loan payment will also be $1666 montly. They currently live in an uptown apartment and the market rent is $3800. They average $500 a month on their utilities and they eat out to the tune of $1000 per month. They have minimum whole life insurance that would only pay for the funeral expenses
