Mary Jane is 25 years old and single. She lives at home with her parents and earns $60,000 at her job as an administrative assistant and has health coverage through her employer. Ms. Jane not risk adverse. Presently Mary has $7,000 of credit at an APR of 19.5%.
Mary has informed you that she would like to buy a house in 5 years and has 401 type plan at her place of employment that matches her contribution up to 3% of her contribution of 5%
As a financial advisor, how would you recommend Mary to handle finances in 401 type plan and purchase a house in 5 years. Including her $7,000 credit at an 19.5% APR?