4. Roberta and Ben Rodriquez hope to retire when they turn 65 and 66, respectively, so they are working on a budget for their retirement years. They will get about $1480 and $1140 a month, respectively, from Social Security. Their home is paid off, although they do have to pay taxes, upkeep, and insurance on the house, which they estimate to be $700 per month. Roberta will receive a pension of about $720 a month, and a financial planner tells them they should be able to withdraw $1000 a month from their retirement plans for the remain- der of their lives. They expect income taxes to be $200 to $300 a month and won't have any payroll taxes unless one or the other has to work part-time. They want to put $520 a month in an account, which will allow them to replace a car every 4 or 5 years. Due to Ben's many fishing trips and the fact that they like plays, dining out, and short vacations, they include a fairly significant cost for "Other expenses." House expenses $700 a month Utilities $180 a month Phone/Internet/cable TV $150 a month Groceries and pharmacy $160 a week Car insurance $110 a month Medical insurance $650 a month Medicare and a plan to supplement Medicare Automobile repairs and gasoline $200 a month Medical and dental $2500 a year unsure of costs during retirement Annual vacation and trips $4000 a year approximate Gifts to kids/grandkids $1000 a year Income taxes $300 a month use the higher figure to be conservative Car replacement $520 a month Other expenses $800 a month Find their average monthly after-tax income, average monthly expense based on the numbers above, and the difference between the two. Are they likely to be able to meet their budget on an ongoing basis? If not, which expenses do you think they can reasonably reduce and how can they increase their income? 4. Roberta and Ben Rodriquez hope to retire when they turn 65 and 66, respectively, so they are working on a budget for their retirement years. They will get about $1480 and $1140 a month, respectively, from Social Security. Their home is paid off, although they do have to pay taxes, upkeep, and insurance on the house, which they estimate to be $700 per month. Roberta will receive a pension of about $720 a month, and a financial planner tells them they should be able to withdraw $1000 a month from their retirement plans for the remain- der of their lives. They expect income taxes to be $200 to $300 a month and won't have any payroll taxes unless one or the other has to work part-time. They want to put $520 a month in an account, which will allow them to replace a car every 4 or 5 years. Due to Ben's many fishing trips and the fact that they like plays, dining out, and short vacations, they include a fairly significant cost for "Other expenses." House expenses $700 a month Utilities $180 a month Phone/Internet/cable TV $150 a month Groceries and pharmacy $160 a week Car insurance $110 a month Medical insurance $650 a month Medicare and a plan to supplement Medicare Automobile repairs and gasoline $200 a month Medical and dental $2500 a year unsure of costs during retirement Annual vacation and trips $4000 a year approximate Gifts to kids/grandkids $1000 a year Income taxes $300 a month use the higher figure to be conservative Car replacement $520 a month Other expenses $800 a month Find their average monthly after-tax income, average monthly expense based on the numbers above, and the difference between the two. Are they likely to be able to meet their budget on an ongoing basis? If not, which expenses do you think they can reasonably reduce and how can they increase their income