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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 23, graduated with a B.S. from SDSU in Fall 2022. He currently earns $50,000 per year as a financial counselor and is paid as a W-2 employee. Assume he has worked at the same employer since January 2023. His employer offers a 3%401(k) match, but he feels he can only afford to contribute 1% of his salary to his 401(k). He as a high deductible health insurance plan through his employer and contributes $200/year pre-tax 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):
(1) What is Darwins net worth?
(2) What is Darwins net gain/loss?
(3) What is Darwins liquidity ratio? Does he have 3-6 months of living expenses saved?
(4) What is Darwins debt-to-income ratio? What recommendations do you have for Darwin based on his debt-to-income ratio?
(5) Assume Darwin is a single taxpayer. What is his federal standard deduction amount for the 2024 tax year? (Hint: The taxes being filed by April 15,2024 are for the 2023 tax year)
(6) Darwin has $75,000 in group term life insurance through his employer. How much of this benefit is taxable to Darwin?
(7) If Darwin inherits stock owned by his grandfather that has an FMV of $20,000, but his grandfathers basis was $15,000, what is Darwins basis in the stock?
(8) How much student loan interest paid could Darwin claim as an adjustment to income on his federal tax return?
(9) What are additional strategies Darwin can employ to reduce his tax liability?
(10) How much of Darwins assets are covered by FDIC insurance?
(11) Darwin purchased his truck in January 2023. The loan as an APR of 8% and a term of 6 years. What might Darwin be able to do to lower the cost of the loan?
(12) Darwins credit card was stolen and used to make $1,000 in fraudulent purchases. He reported the theft to his bank within 7 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?
(13) 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 Rent-a-Center or Aarons. Is this a good idea? Why or why not?
(14) Darwin is interested in purchasing a home. Can he afford to do so? Why or why not?
(15) 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 = $5,000 Truck = $55,000
Savings account at Wells Fargo = $5,000 Student loans = $30,000
Truck: $60,000
Savings bonds = $1,000 Credit card = $3,000
401(k)= $2,000
Income Expenses
Salary = $50,000 Student loan payments = $6,000
Truck payments = $6,500
Renters insurance = $200
Auto insurance = $1200
Food = $2400
Gas = $2,000
Clothing = $1,000
Rent = $14,000
Utilities = $6,000

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