Question
1. Do Bill and Molly qualify for any other tax-advantaged saving vehicles? If so, which ones? To what extent?
2. Since Bill does not receive an employer match, should he invest the maximum amount in his Roth IRA annually or just

Question
Min-Jun and Min-Suh want to contribute $120,000 to a 529 plan for the benefit of their new grandchild. If done shortly after the birth of the child, with a 7 percent annual return and no other contributions, what will the account be

Question
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 30 years and anticipate they will need funding for an additional 20 years. They determined that they would have a retirement income of $61,000 in

Question
Reece is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of $38,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. XYZ Company will match 100 percent of L his contribution

Question
Russell and Charmin have current living expenses of $97,000 a year. Estimate the present value amount of income they will need to maintain their level of living in retirement. Assume an average tax rate of 20 percent and an 80 percent income

Question
Anne-Marie and Yancy calculate their current living expenditures to be $67,000 a year. During retirement, they plan to take one cruise a year that will cost $5,000 in today’s dollars. Anne-Marie estimated that their average tax rate in retirement would be 12

Question
Sedki earned $119,750 in 2014. How much did he pay in Social Security taxes? In Medicare taxes? In total FICA taxes?

Subject
business-corporate-finance

Question
Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $50,000 salary, and is already looking forward to retirement in 40 years. He assumes a 3.5 percent inflation rate and plans to live in retirement for 20 years.

Question
Assuming a 7 percent annual return with a Coverdell Education Savings Account, how much would $2,000 annual contributions be worth when the child from the previous question is 18 and ready to enter college?

Subject
business-corporate-finance

Question
Jazmin earned $51,250 this year. Calculate her total FICA contribution for the year. How much did her employer pay toward FICA?

Subject
business-corporate-finance