1. How would you rate the financial status of the Faulks before the air conditioner broke down?
2. The Faulks have a $235 surplus at the end of each month. Based on their current financial condition, what do you think they should do with this money?
3. The Faulks take-home pay is almost $4,000 a month. And yet, after all expenses are paid, there is only a $235 surplus each month. Based on the information presented in this case, what expenses, if any, seem out of line and could be reduced in order to increase the surplus at the end of each month?
4. Given that both Jonathan and Meredith Faulk are in their mid-thirties and want to retire when they reach age 65, what type of investment goals would be most appropriate for this couple?
5. How does the time value of money concept affect the type of long-term goals and the investments that couples like the Faulks might use to build their financial nest egg?
6. Based on the different investments described in this chapter, what specific types of investments (stocks, mutual funds, real estate, etc.) would you recommend for the Faulks? Why?