Invest for the future. Barrett should include retirement planning and risk management to her portfolio. Wright suggests an immediate increase in her 401(k) contribution from 2% to at least 4% and increasing in small increments over the next three years to 10%. He also recommends a 20-year term policy to protect her son in the event of her premature death.
Financial Snapshot
Njeri Barrett
Dorchester, MA
Household Income
Gross Income   $83,600
Assets
Checking   $300
401(k) Â Â Â $2,200
Savings    $2,400
Rental Home* Â Â Â $162,000
2008 Nissan Rogue**Â Â Â $8,939
Total   $175,839
Liabilities
First Mortgage    $189,000
Second Mortgage   $8,200
Credit Cards   $9,600
Student Loans:Â Â Â $31,000
Car Loan   $6,300
Total Liabilities   $244,100
Net Worth   -$68,261
* Estimated value according to Zillow.com
** Estimated trade-in value according to Kelley Blue Book
Total Assets    $175,839
Total Liabilities    $244,100
Net Worth    -$68,261