House Rich, Cash Poor
Black Enterprise Magazine January-March 2019 Issue

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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)     $2,200
Savings     $2,400
Rental Home*     $162,000
2008 Nissan Rogue**    $8,939
Total    $175,839

Liabilities
First Mortgage     $189,000
Second Mortgage    $8,200
Credit Cards    $9,600
Student Loans:    $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

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