answer the questions
TracyZhou0806
LifeAfterCollege-HowdoIFareExercise.xlsxAssignment Summary
| Life After College - How do I Fare? | |||||||
| This is an exercise for you to evaluate your budget after you graduate college, incorporating your projected income, expenses, student loan repayments, taxes, and savings and investments. You are only to input items that are in RED. | |||||||
| In order to complete the Life After College exercise, you will be evaluating the following items after you graduate: | |||||||
| 1 - Projected annual salary (Sheet: Annual Income and Taxes) 2 - Taxes on your projected annual salary (Sheet: Annual Income and Taxes) 3 - Projected Budget (Sheet: Projected Budget) 4 - Calculate your monthly student loan payment (and theses calculations will be incorporated in your budget) (Sheet: Monthly Student Loan Payment) 5 - Determine the amount of savings (and how will you save: i.e. 401K traditional or Roth or after tax investments) (Sheet: Projected Budget) 6 - Calculate the growth of your investments over time assuming an asset allocation mix of investments (Sheet: Savings and Investment Growth) | |||||||
| Summary of Results (no inputs as these are claculated form your inputs in the other worksheets) | |||||||
| Net Monthly Income | $ 2,189.21 | ||||||
| Projected Budget Excess/(Deficit) | $ 479.21 | ||||||
| Monthly Student Loan Payments | $ - 0 | ||||||
| Monthly Savings Total | $ - 0 | ||||||
| Future Value of Investment Portfolio at Retirement | $ - 0 | ||||||
Annual Income and Taxes
| Annual Income and Taxes Calculation | ||||||
| Instructions: Input your projected annual salary after you graduate (all other numbers are calculations) | ||||||
| Annual Salary | $ 50,000.00 | RED INPUT!!! | ||||
| Assumptions: | Income Tax Assumptions | |||||
| 2019 Federal Income Tax Table for Unmarried Individuals | 2019 New Jersey Income Tax Table for Unmarried Individuals | |||||
| Tax Rate | Unmarried Individuals, Taxable income over | Tax Rate | Unmarried Individuals, Taxable income over | |||
| 10% | $ - 0 | 970 | 1.40% | $ - 0 | 280 | |
| 12% | $ 9,700.00 | $ 3,573.00 | 1.75% | $ 20,000.00 | $ 262.50 | |
| 22% | $ 39,475.00 | $ 9,839.50 | 3.50% | $ 35,000.00 | $ 175.00 | |
| 24% | $ 84,200.00 | $ 18,366.00 | 5.33% | $ 40,000.00 | $ 1,865.50 | |
| 32% | $ 160,725.00 | $ 13,880.00 | 6.37% | $ 75,000.00 | $ 27,072.50 | |
| 35% | $ 204,100.00 | $ 107,170.00 | 8.97% | $ 500,000.00 | ||
| 37% | $ 510,300.00 | |||||
| 2019 Itemized Deduction | $ 12,200.00 | |||||
| Output (Calculations) | ||||||
| Comments | ||||||
| Gross Income | $ 50,000.00 | Taken from input above | ||||
| Adjustments to Income | ||||||
| 401K or IRA Contribution | $ - 0 | Taken from Budget Worksheet | ||||
| Medical from company | $ (2,400.00) | Taken from Budget Worksheet | ||||
| Total Adjustments to Gross Income | $ (2,400.00) | |||||
| Adjusted Gross Income | $ 47,600.00 | |||||
| Standard Deduction | $ (12,200.00) | Assuming standard deduction | ||||
| Taxable income | $ 35,400.00 | |||||
| Taxes | ||||||
| Income Tax Federal | $ (4,054.00) | Calculated from table above; based on taxable income | ||||
| Income Tax State | $ (1,250.50) | Calculated from table above; based on gross income | ||||
| Social Security | $ (3,100.00) | 6.2% of Salary; Taxable wage base of 132,900 for 2019 | ||||
| Medicare Tax | $ (725.00) | 1.45% of Salary | ||||
| Total Taxes | $ (9,129.50) | |||||
| Total Annual Income After Taxes | $ 26,270.50 | |||||
| Net Monthly Income Used for Budget Purposes | $ 2,189.21 |
Monthly Student Loan Payment
| Monthly Student Loan Payment | ||
| This spreadsheet will help you calculate the monthly payments for your student loans | ||
| Instructions: Enter the Amount Borrowed, Annual interest rate and number of years to payoff loan for each loan you have taken for college. If you do not have 5 loans, only put in the information for each loan; RED INPUT!!! | ||
| Loan #1 | Inputs | |
| Amount Borrowed | $ - 0 | |
| Annual Interest Rate | 0.00% | |
| Number of year to payoff loan | 0 | |
| Calculated monthly payment | $0.00 | |
| Loan #2 | Inputs | |
| Amount Borrowed | $ - 0 | |
| Annual Interest Rate | 0.00% | |
| Number of year to payoff loan | 0 | |
| Calculated monthly payment | $0.00 | |
| Loan #3 | Inputs | |
| Amount Borrowed | $ - 0 | |
| Annual Interest Rate | 0.00% | |
| Number of year to payoff loan | 0 | |
| Calculated monthly payment | $0.00 | |
| Loan #4 | Inputs | |
| Amount Borrowed | $ - 0 | |
| Annual Interest Rate | 0.00% | |
| Number of year to payoff loan | 0 | |
| Calculated monthly payment | $0.00 | |
| Loan #5 | Inputs | |
| Amount Borrowed | $ - 0 | |
| Annual Interest Rate | 0.00% | |
| Number of year to payoff loan | 0 | |
| Calculated monthly payment | $0.00 | |
| TOTAL LOAN MONTHLY PAYMENTS | $0.00 |
Projected Budget
| Projected Budget | ||||||
| Instructions: Choose from the drop down menus that are in RED | ||||||
| Net Monthly Income | After 401K and other retiement and Medical Expenses * | $ 2,189.21 | ||||
| RED INPUT!!! | ||||||
| Budget Category | Budget Item | % of Net Monthly Income or Cost per Month Use Drop Downs | Comments about choosing from the drop down menus | |||
| Housing | ||||||
| Rent | $800 | $800 for having a roommate; $1,600 for no roommate; 1,750 in NYC having a roommate; $3,500 in NYC no roommate | $800 | |||
| Utilities (gas, electric and water) | $125 | $125 with a roommate and $250 for no roommate | $125 | |||
| Internet | $50 | $50 = Normal Speed, $100 = High Speed | $50 | |||
| Total Housing | $ 975.00 | |||||
| Transportation | ||||||
| Car Payment | $200 | $200 = Civic, $350 = Rav 4, $500 = BMW; $0 - No car needed | $200 | |||
| Gasoline | $60 | $60 = 8,000 miles per year; $90 = 12,000 miles per year; $120 = 16,000 miles per year; $0 - No car needed | $60 | |||
| Insurance | $170 | $170 for Civic or Rav 4; $250 for BMW; $0 for no car | $170 | |||
| Maintenance | $25 | $300 per year ($25/month) of you have a car and $0 for no car | $25 | |||
| Total Transportation | $ 455 | |||||
| Savings | ||||||
| 401(K) or other retirement | 0% | Enter the percentage of Gross monthly pay you wish to save (not included in Net Monthly Income Budget (Pre-Tax) * | $0 | |||
| Additional Savings | 0% | Enter the percentage of Gross monthly pay you wish to save | $0 | |||
| Total Savings | $0 | |||||
| Student Loan Payment | Calculated | Taken from Monthly Student Loan Payment Spreadsheet | $0 | |||
| Other Expenses | ||||||
| Health Insurance | $200 | $200 per month for HMO type plan, $400 for PPO Plan, $0 if under parents plan as a student (graduate school) (not included in Net Monthly Income Budget (Pre-Tax) * | $200 | |||
| Food | $200 | $200 per month for eating in; $300 for eating in and out 2 timers per week; $400 for eating in and out 4 timers per week | $200 | |||
| Vacation | $0 | Your choice = $100, $200, $300, 0 (for no fun!) | $0 | |||
| Entertainment (movies, dining out, etc.) | $0 | Your choice = $50, $100, $150, $200, 0 (for no fun!) | $0 | |||
| Clothing | $0 | Your choice = $50, $100, $150, $200, 250, 300, 0 (good luck!) | $0 | |||
| Cell Phone | $30 | $30 limited data, $50 unlimited data, $80 unlimited data and always getting the latest upgrade | $30 | |||
| Charitable Contributions | $0 | $5, $10, $25, $50, $0 (Charity starts at home!!!) | $0 | |||
| Personal Care (i.e. Hair) | $25 | $25, $50, $75, $100, $125, $150, $175, $200, 0 (Watch out!!!) | $25 | |||
| Other | $25 | $25, $50, $75, $100, $125, $150, $175, $200, 0 (What am I missing?) | $25 | |||
| Total Other Expenses | $280 | |||||
| Total Expenses | $ 1,710.00 | |||||
| Net Monthly Excess (Deficit) | MAKE SURE YOU ACCOUNTED FOR ALL EXPENSES AND MAYBE ADD MORE TO SAVINGS | $ 479.21 | ||||
Savings & Investment Growth
| Savings and Investment Growth | |||||||||
| This spreadsheet will review your savings in both your 401K and other Savings to calculate the growth till retirement. | |||||||||
| Monthly 401K or retirement savings | $0 | <---------- | Taken from Projected Budget Worksheet | ||||||
| Additional monthly savings | $0 | <---------- | Taken from Projected Budget Worksheet | ||||||
| Total Monthly Savings | $0 | ||||||||
| Instructions: Choose and Investment Portfolio Related to your Risk Tolerance and Number of Years Till Retirement | |||||||||
| RED INPUT!!! DROP DOWN | |||||||||
| Choose your Portfolio: | Conservative | ||||||||
| Estimated Annual Investment Return | 5.89% | ||||||||
| Enter how many years till retirment | 40 | ||||||||
| Future Value of Monthly Savings | $0.00 |
