FIN 420 ASSIST Career Path Begins/fin420assist.com FIN 420 ASSIST Career Path Begins/fin420assist.com | Page 12

Gift to Minor Account. What are some costs and disadvantages of 529
plans? What types of 529 plans are available in your state?
Using the Social Security Retirement Estimator
(http://www.ssa.gov/estimator/), determine your retirement age and
estimate the retirement benefits you will receive from Social Security if
you work to your full retirement age.
Estimate your necessary living expenses when you retire and calculate
the shortfall between this amount and your estimated social security
benefit.
Calculate how much you need in savings today to meet that shortfall, or
alternatively, how much you need to save per month between now and
your full retirement age to meet the shortfall.
Read “Case in Point – A Single Father’s Tax Situation” in Ch. 3 of your
text. Answer the following questions:
What are Eric’s major financial concerns in his current situation?
In what ways might Eric improve his tax planning efforts?
o Calculate the following:
·

What is Eric’s taxable income? (Refer to Exhibit 3-1)

·
What is his total tax liability (Use the Tax Rate table)? What is his
average tax rate?
Based on his withholding, will Eric receive a refund or owe additional
tax? What is the amount?
Use the “Figure It Out!” workhsheet in Ch. 10 of your textbook in the
“Estimating Your Life Insurance Requirements” section to calculate
your own life insurance needs. Obtain premium rates for $50,000 whole
life, universal life, and term life policies. Compare the costs and
provisions of these policies.
Read “Case in Point – Life Insurance for the Young Married” in Ch. 10.
Answer the following: What type of policy would you suggest for Jeff
and Ann? Why? In your opinion, do Jeff and Ann need additional
insurance? Why or why not?