You are 35 years old You have a non-working spouse (same age) You have one child, age 3 Annual gross income = $110,000 Your monthly expenses total S3,500 Monthly debt payments are S400 (counted in the S3,500) Tax-specific Information Adjusted gross income S75,500 Itemized deductions-$15,500 Child care tax credit $500 Federal income tax withheld S6,250 Amount for personal exemptions S12,500 You want to ensure your children's futures are protected a) Use the "non-working spouse" method of calculating how much life insurance you should purchase to ensure your children can be cared for if you die b) You also want to ensure your children will have enough money for college. You know that right now college costs $10,000 per year. You just read that college expenses are expected to increase 2% annually How much money will you need to have saved by the time your oldest child is ready to head to college when they are 18? You goal is to have 4 years-worth of college expenses sitting in the account when your child turns 18 2 i. 1 ii You decide to save $250 per month for your child's education. You figure you can earn 6%. Will you have enough money saved to pay for all of your child's education? Explain