ice Problems Assigned as Review O Answers the question \"Am I Saving Enough for
ID: 2808609 • Letter: I
Question
ice Problems Assigned as Review O Answers the question "Am I Saving Enough for Retirement?" Is Lucy saving enough for retirement. Her assets include: -House (value $250,000) -Savings (value $57,000) Stocks that she owns (value $5,000) - Retirement package through work (value $100,000) What is Lucy's approximated (rounded up) Investment Asset to Total Asset Ratio? Please report your answer as a decimal to two answer places. Numeric Answer: Show Submitted Answer Show Correct Answer Check My Answer Assigned as Review O Knowing the ratios...Explanation / Answer
This ratio compares the liquid assets being held by an individual against the total assets accumulated.
Investments in stocks, mutual funds or other such investments which can be converted to cash easily are considered as liquid assets. Apart from the liquid assets, total assets also include illiquid assets such as real estate or other such investments which require more time to convert to cash. One should at least hold 20% of the total assets in the form of liquid assets.
Investment assets to Total Assets = Liquid Assets/Total Assets
Thus, Investment assets to Total Assets = (savings+stocks)/total
= (57000 + 5000) / (250000 + 57000 + 5000 + 100000)
= 0.1504
rounding off to 0,15
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