All remaining income is invested for Olivia’s college education or put into the family’s savings
account. The family would like to be able to pay for at least 2 years of Olivia’s college tuition.
The Martinezes’ other life goals are:
1. To improve the financial security of their family through adequate emergency savings and
life insurance coverage. They would like for their life insurance to be able to pay for their
final expenses, pay off the consumer debt and the mortgage if they buy the house.
2. For John and Frieda to be able to retire when John turns age 60. They would like to have
enough money in their retirement accounts to allow them an annual living expense (pre-tax)
equivalent to $75,000/year in 2011 dollars. They are assuming they will be retired for a
total of 35 years.
3. To pay off their credit cards and student loans within the next 5 years.