Finiacal Planning Project

FINANCIAL PLANNING PROJECT Part 1: Future Goals, Taxes, & Income Budgeting DIRECTIONS & HINTS You must show all work on EVERY calculation, even those done on a calculator or in your head. You will receive NO credit for answers lacking accompanying computations. Submit Handwritten Work o By printing the project, writing your work in the margins, and then creating a scanned PDF of each page o By working problems on a separate piece of paper Make sure your page of calculations is NEAT and LABELED Make a note in the document beside any problems you work on a separate piece of paper Create scanned images of work pages, then combine those with the project file into one PDF o By inserting pictures of the handwritten work into the document beside the corresponding problem This is the PREFERRED method HINT: Insert text boxes alongside problems and add the pictures of your work in the text boxes Electronic Work o Some calculations can be completed with the EZ Financial Calculator app ; if you use the app, insert screenshots of the app, with filled in values, alongside the associated problem o Problems solved on a calculator Type what you entered into the calculator beside the associated question (work can look like 12/4=3, or you can insert a nicely formatted equation by going to "Insert" 12 4 = 3 then to "Equation" on the Word toolbar) Insert pictures of your calculator screen into the document beside the corresponding problem Words written in italics supply hints or tips for solving. Please maintain the structure of this document. You can remove reflection questions you do not answer, and hints written in italics, but please do not delete headings. Ideal Life & Future Goals After graduating from college, you will get a job in your field of interest and begin to build your life. Based on ideal life and your personal and financial goals you will create a financial plan for your future. 1. First, assume you have just finished college and you get a job in the career you'll research below. Describe where you are living and some of your financial circumstances (i.e., amount of your student loans, if you own a home or are renting, bills you are paying, etc.). These will be the conditions you will use for the rest of the FPP project. I will be a corporate lawyer in hopefully colorado or florida but right out of college (underdegree ) I will be attending law school for 3 years then taking the bar exam . After law school I will be starting to make
a salary of $158,336. I will have about $70,000 student loan debt I tend to pay off before I'm 35. I will want to have a nice condo or townhouse once I'm out of law school and have started my career for around $2600. 2. Next, describe your future life , 5, 10, and/or 20 years after graduating . Discuss your financial situation and goals . For example, explain how old you are when you will reach your goals, tell where you are living, and list how many people make up your household. Describe some of the financial situations you deal with at that point in your life, such as the amount of student loans you still owe, your housing arrangements, what goals you are saving for, etc. In the next 5 years I will be attending a law school and working on the bar exam and practicing and at this time I hope to be working a paid internship while attending, not sure if I'll be in state . In the next ten years I will hopefully pass the bar exam and a few years in my Corporate lawyer career and working in maybe Florida or Colorado . At this point I will really need to budget the bigger bills like student loans which will be around 70,000 and car payments and really paying my bills and rent will 100% be on me so budgeting will be really important .I will at this point be saving for investing in properties to increase my streams of income . Career Figure out what job you think you'll end up with (and where it might be), and research your career choice. You may want to include side jobs that you may do. For example, teachers may get second jobs during the summer. Below are some websites you might find useful, but you may use others, just make sure to cite your sources o Occupational Outlook Handbook o NC Careers o Career Earning by College Major o CareerOneStop o US Bureau of Labor Statistics: Occupational Employment and Wage Statistics o Payscale: College Salary Report o Salaries Record the educational level, growth rate of available jobs ( check OOH ), and median income in the blanks below. Make sure you cite your source and show all your work. You CANNOT calculate with an income of $40,000 per year because that was the example from class. Find a different annual income estimate from an alternate online source. 1. Potential career choice (based on your degree): Corporate Lawyer 2. Educational Requirements: 4 Year Undergraduate Degree + 3 Years Law School
3. Projected Growth Rate (How Quickly Industry is Growing): 10%, faster than average 4. Median/Average Starting Annual Salary (Before Taxes): $ 158,336 5. Median/Average Starting Monthly Income (Before Taxes): $ 13,194.66 6. Median/Average Annual Income with Experience (Before Taxes): $185,500 7. Median/Average Monthly Income with Experience (Before Taxes): $15,458 Income Tax You are starting your career, so use your starting annual salary from above to calculate the amount of federal income tax that will be taken out. Personal exemptions were eliminated in 2018, therefore, $0 is shown for personal exemptions. Assume your filing status is SINGLE and you take the standard deduction (you probably won't itemize until you purchase a house). The standard deduction for 2022 was set at $12,950 for a single person. Show your calculations for Annual Federal Taxable Income. Calculate your total taxable federal income : Starting Gross Annual Income $158,336__ Federal Personal Exemption $ 0 Federal Standard Deduction $ 12,950 = Annual Federal Taxable Income $ 145386 Using the US graduated income tax system, or tax brackets, for single filers for 2021 income taxes, payable in 2022, shown below, determine the amount of federal income tax you owe. You make at least: but not over: Your taxes are: $0 $10,275 $0 + 10% · (Federal taxable income) $10,276 $41,775 $1,027.50 + 12% · (excess over $10,275) $41,776 $89,075 $4,807.50+ 22% · (excess over $41,775) $89,076 $170,050 $15,213.50 + 24% · (excess over $89,075) $170,051 $215,950 $34,647.50 + 32% · (excess over $170,050) $215,951 $539,900 $49,335.50 + 35% · (excess over $215,950) $539,901 $162,718 + 37% · (excess over $539,900) FEDERAL INCOME TAX OWED FORMULA FILLED IN: 15213.50+0.24(145386-89075) FEDERAL INCOME TAX OWED: $28,728.14 State Taxes If you are going to stay in NC , use the 4.99% flat tax rate, standard deduction, and personal exemption values entered below.
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