Attention:
Shirley Should Probably Avoid Trading Forex
Should Shirley consider forex trading to earn some extra cash? The answer is no. Here is why.
Shirley and her husband, Richard, are both retired and enjoy taking care of their grandchildren during the day. They lost a large portion of their savings during a financial crisis, and they have about $70,000 left in their bank account. Including withdrawals from their 401(k)s their annual household income is about $20,000. Fortunately they have no debt, but they are hoping to buy a larger house soon so that they can fit all their children and grandchildren during the holidays. Tables 18-3 and 18-4 give their monthly expenses.
Average Essential Monthly Expenses
|
Groceries |
$340 |
|
Housing |
$450 |
|
Utilities, fuel, and public services |
$200 |
|
Housekeeping supplies |
$150 |
|
Healthcare |
$0—Medicare paid by government |
| Total |
$1,140 |
Average Extra Monthly Expenses
|
Eating out |
$150 |
|
Entertainment |
$40 |
|
Apparel and services |
$175 |
|
Beauty care |
$10 |
|
Alcoholic beverages |
$20 |
|
Vacation |
$40 |
|
Gifts |
$25 |
|
Total |
$460 |
Monthly income = $1,600
Essential + extra monthly expenditures = $1,600
Monthly income = monthly expenditures
Is she eligible to invest?
Maybe.
Should Shirley invest part of their savings in forex?
No
