This month’s makeover

Who: Nancy and Bill Lomen

Income: $88,000

Assets: $550,000 home and $23,000 in savings

Debts: $79,000 mortgage and $16,000 home equity line of credit

Recommendations: Proceed with plan for Nancy to apply for $20,000 accelerated 15-month bachelor’s degree program to become a registered nurse. The degree should enable her to work as a nurse for $50,000 a year, a 57% increase over her $31,774 annual salary as an administrative assistant. To pay for this degree, a master’s degree plus living expenses — $60,000 total — the Lomens should look into obtaining a “cash-out refinance” on their home. This would reduce the interest rate on their mortgage to 3.75% from 5.375%. That would lower their monthly mortgage payment, even with extra borrowing. After Nancy obtains her bachelor’s degree, reevaluate to determine whether pursuing a master’s degree still makes sense. The second degree should enable Nancy to begin making $70,000 to $100,000 a year. Begin saving $15,000 a year for retirement as soon as possible. Bill should increase his life insurance coverage before he becomes the sole breadwinner during Nancy’s school years. He should also teach during the summer while Nancy is in college to bring in an extra $7,000 in income.

About the planner: Delia Fernandez is a fee-only financial planner and the founder of Fernandez Financial Advisory in Los Alamitos.