You currently have $80 of cash on hand, a checking account with a balance of $600, and a savings account containing $1,500. You own a small condo currently worth $120,000 with a mortgage on which you still owe $100,000, and on which you pay $600 per month. You own personal property (furniture, television, computer, etc.) worth $8,000. You have inherited Treasury bonds from your late aunt worth $12,000. You participate in a 401(k) retirement plan, now worth $30,000, in which you are 100% vested. You own a car originally valued at $28,000, now worth $12,000, on which you still owe $1,200, and make monthly payments of $250. Finally, you have credit card debt of $2,500 on which you pay a constant $125 per month.

Developing a set of structured and deliberately formulated financial plans is very useful in achieving financial success and security. Which of the following actions would you recommend to someone thinking about engaging in financial planning?

Action Recommend?
(Yes or No)
Build your financial objectives on the basis of your values.
To make it easier to achieve your financial goals, make your them as vague and flexible as possible.
Live beyond your means by relying on credit cards and other loans.
Consider having the amount to be saved automatically deducted from your paycheck.

it would be the most wiser decision to recomenr fianncial assets that matches the values of the customer that way if the person is highly averse against risk it will be better to go for a more secure portfolio while, if likely to take risk go for higher risk option. This also is important to do when considering the age of the person as elderly people doesn't have many years left to recover from a riskier investment than younger people.

Also, deducting the savings automatically is good with the strategy of "paying yourself first" And to make the savings goal achievable be honest about how much can you spend considering the cost of living you want

Supabrain Supabrain · Answer 2 · 2020-02-25T07:16:21+01:00

Answer:

consider having the amount to be saved automatically deducted from your paycheck.

Explanation:

having the amount to be saved automatically deducted is more safe than actually saving the amount on your own as there are risks involved with that, risks like saving less amount than the predetermined amount, not sticking to time of saving and saving automatically is more strict, clear and correct even on time.