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Darwin, age 2 3 , graduated with a B . S . from SDSU in Fall 2 0 2 2 . He currently earns $
Darwin, age graduated with a BS from SDSU in Fall He currently earns $ per year as a financial counselor and is paid as a W employee. Assume he has worked at the same employer since January His employer offers a k match, but he feels he can only afford to contribute of his salary to his k He as a high deductible health insurance plan through his employer and contributes $year pretax to a Health Savings Account. He comes to you, a financial planner, to make sure he is doing everything he can to maximize his wealth accumulation. Use the information above and below answer the following questions Show your work for all calculations to receive full credit:
What is Darwins net worth?
What is Darwins net gainloss
What is Darwins liquidity ratio? Does he have months of living expenses saved?
What is Darwins debttoincome ratio? What recommendations do you have for Darwin based on his debttoincome ratio?
Assume Darwin is a single taxpayer. What is his federal standard deduction amount for the tax year? Hint: The taxes being filed by April are for the tax year
Darwin has $ in group term life insurance through his employer. How much of this benefit is taxable to Darwin?
If Darwin inherits stock owned by his grandfather that has an FMV of $ but his grandfathers basis was $ what is Darwins basis in the stock?
How much student loan interest paid could Darwin claim as an adjustment to income on his federal tax return?
What are additional strategies Darwin can employ to reduce his tax liability?
How much of Darwins assets are covered by FDIC insurance?
Darwin purchased his truck in January The loan as an APR of and a term of years. What might Darwin be able to do to lower the cost of the loan?
Darwins credit card was stolen and used to make $ in fraudulent purchases. He reported the theft to his bank within business days. How much, at most, is he liable? What can he do to ensure no negative information about the theft is reported to the credit bureaus?
Darwin is tired of his old, secondhand particle board furniture from college. He went to a couple of furniture stores and was shocked by the prices. He is considering getting furniture from RentaCenter or Aarons. Is this a good idea? Why or why not?
Darwin is interested in purchasing a home. Can he afford to do so Why or why not?
Is Darwin doing everything to meet his goal of maximizing wealth accumulation? Why or why not?
Assets Liabilities
Checking account at First Bank and Trust $ Truck $
Savings account at Wells Fargo $ Student loans $
Truck: $
Savings bonds $ Credit card $
k $
Income Expenses
Salary $ Student loan payments $
Truck payments $
Renters insurance $
Auto insurance $
Food $
Gas $
Clothing $
Rent $
Utilities $
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