1. Al and Peggy recently received a phone call from an insurance agent telling them they can save $200 per year on their homeower's insurance. They want you to evaluate the two policies using the website https://www.opic.texas.gov/. The Bundy's currently have an HOW policy with State Farm. They agent is proposing an HOA (Standard) policy from Foremost.
2. Al and Peggy would like you to use the 3 step retirement problem you learned in class to help them get to retirement. They would like to retire when Al is 65. They believe they can earn 8% on their investments before retirement and 6% during retirement. They believe that they will both die when Al reaches 85 (apparently they have a crystal ball of some sort). They will receive $10,000 per for social security and would like to live in 70% of their pretax income. They feel inflation will be 3.2%. They would like you to use the funds in their retirement accounts to help them achieve the goal. Are they on track? Do they need to save more money? Does it matter if the saving is done annually vs monthly.