Carl and Elaine Blankenship together earn approximately $82,000 a year after taxes Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $150,000 a How much of their annual income do you recommend they hold in some form of liquid savings as re...

a Since Carl and Elaine have annual aftertax income of 82000 their monthly income is 683 ...

Carl and Elaine Blankenship together earn approximately $82,000 a year after taxes. Through an inheritance and some

Question:

Carl and Elaine Blankenship together earn approximately $82,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment with a value of almost $150,000.
a. How much of their annual income do you recommend they hold in some form of liquid savings as reserves? Explain.
b. How much of their investment do you recommend they hold in savings and other short-term investment vehicles? Explain.
c. How much, in total, should they hold in short-term liquid assets?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...