Essay - Personal Finance the $8000 Liquid Balance that the Helm's Have...

Personal Finance

The $8000 liquid balance that the Helm's have may seem adequate to many people that survive on a payday-*****-payday basis, but it is actually very l*****tle money. If ***** Helm's do not ***** good health insurance, for example, and one of them would get sick or injured, the $***** could be used up very quickly. If they do not have disability insurance, or if one of them would lose their job, the money ***** not last long. However, it is true that they are not making much interest on the money ***** they do have in the bank, and a higher rate ***** return would be more favorable for them because they would be receiving more money and it would build up faster.

As for CDs, ***** usually provide a *****tter ***** of ***** th*****n ***** accounts, so they are good for ***** money. However, the money ***** locked up ***** a period of time - usu*****lly at least one year ***** and if the Helm's needed th***** money for an emergency they would not be able to access it w*****hout a heavy penalty. I ***** only recommend ***** ***** the Helms if they had more liquid income available to them or were ***** financially secure, so that whatever happened ***** them during the period of ***** CD would not cause ***** to need any ***** ***** money.

The stock market is also risky. I do ***** think that the ***** should invest much, if any, of *****ir money in the stock market at this time. This type of investment carries no FDIC guarantee, and they ***** lose all of th***** money if the market did *****t perform well or if ***** ***** not have someone who was well-qualified in making ********** *****s f***** them. The Helms should be cautious and not take strong risks i***** they choose to *****nvest some of their ***** into the ***** market, instead choosing an investment portfolio that has low to average risks and returns.

***** for a gener*****l financial plan, the Helms really have ***** little in their checking account, and it seems like they make a re*****sonable amount ***** money each month. They ***** look at where their ***** is going, as it may be possible to reduce wh***** ***** spend each *****, which would give them more money for investing without cutting into ***** liquid