You recently met with your new clients, Scotty & Casey Young. It was your first formal meeting; however, they requested that you combine the initial meeting with a data$-$gathering session. The Youngs were referred to you by a long$-$time client, and they are interested in a fairly comprehensive review of their finances to include a financial checkup; a review of their cash management, including saving, credit management, and housing, and college education planning for their daughter. They would like you to start the engagement with an analysis of their current financial situation so that they can move forward to accomplish their goals. You learned that Scotty is $40,$ Casey is $32,$ and they have a five$-$year$-$old son, Alex. Scotty earns $$85,000$ per year as a sales manager, while Casey is a nurse at a local hospital and earns $$95,000$ annually. They do not have any other out$-$of$-$state income. They have lived in Springfield, MO$,$ for all their life and do not plan to move to another state. They each contribute to their pre$-$tax retirement accounts. Scotty has a $401($k$)$ plan with a dollar$-$for$-$dollar match on the first $6\%$ of income contributed. Caseys plan is a $403($b$)$ with a $$0\mathrm{.}50$ on the $$1\mathrm{.}00$ match on the first $8\%$ contributed. They are both currently contributing $6\%$ of their salaries to their retirement plan. Both are fully vested in these plans, and they have had good success with the returns from their mutual funds in their tax$-$deferred accounts, with an average annual rate of return of about $6\mathrm{.}5\%.$ In addition to retirement contributions, other payroll deductions include Social Security & Medicare $($FICA$)$ and federal income tax. The Social Security tax rate is $6\mathrm{.}2\%$ on the first $$168,600$ for $2024,$ and the Medicare tax rate is $1\mathrm{.}45\%$ on all earnings. Their federal income tax withholding is $15\%$ of their gross salaries, and this has historically been very close to equaling their tax liability. In $2023,$ Scotty paid $$4,023$ for state income tax, and Casey paid $$4,518$ for state income tax, and they will pay the same amount of state income tax in $2024.$ Scotty, Casey, and Dak are all covered under Caseys employer$-$sponsored health, as it is superior to Scottys employer$-$provided plan. Caseys monthly payroll deduction for health insurance is $$471.$ By way of assets, the Youngs have a joint checking