Taxation in the United States and Monthly Mortgage Payment

Topics: Taxation in the United States, Taxation, Progressive tax Pages: 53 (3666 words) Published: December 4, 2014
1.The Dumonts are in the early years of the
accumulation of wealth stage of the
financial life cycle. During this longest
stage of the life cycle, the Dumonts will
establish their lifestyle and build a
foundation for the two later stages. This
phase is characterized by:

1. The Dumonts are in the early years of the accumulation
of wealth stage of the financial life cycle. During this
longest stage of the life cycle, the Dumonts will establish
their lifestyle and build a foundation for the two later
stages. This phase is characterized by:
• Family formation.
• Goal setting.
• Home buying.
• Debt planning.
• Savings accumulation (emergency fund, home down
payment, children’s education fund, and retirement).
• Insurance planning (medical, disability, liability, property, life).
• Estate planning.

2.
• Cory and Tisha’s short-term goals (less than one year) might include the following:


Cory and Tisha’s intermediate-term goals (1 to 10
years) might include the following:



Cory and Tisha’s long-term goals (greater than 10
years) might include the following:

Cory and Tisha’s short-term goals (less than one year)
might include the following:
• Begin savings to accumulate an emergency fund.
• Continue savings for home down payment.
• Continue payments on debt and credit cards.
• Start saving for retirement.
• Review property, health, disability, life and liability
insurance needs and purchase as needed.
• Write a will.

Cory and Tisha’s intermediate-term goals (1 to 10 years)
might include the following:
• Accumulate emergency fund.
• Save for Chad’s and Haley's college education.
• Continue saving for home down payment and purchase
home.
• Pay off debt and credit cards.
• Replace autos.
• Continue saving for retirement.
• Review property, health, disability, life and liability
insurance as their family situation changes.
• Review estate plans as family situation changes.

Cory and Tisha’s long-term goals (greater
than 10 years) might include the following:
• Save for and pay for Chad’s and Haley's
college education.
• Save for and fund retirement plans to
maintain current standard of living.
• Review property, health, disability, life and
liability insurance needs as family situation
changes.
• Review estate plans as family situation
changes.

W7 WORKSHEET

Simplified Income Statement
Your Take-Home Pay
A. Total Income
A.
B. Total Income Taxes
- B.
C. After-Tax Income Available for Living Expenditures
or Take-Home Pay (line A minus line B)
= C.
Your Living Expenses
D. Total Housing Expenditures
E. Total Food Expenditures
F. Total Clothing and
Personal Care Expenditures
G. Total Transportation Expenditures
H. Total Recreation Expenditures
I. Total Medical Expenditures
J. Total Insurance Expenditures
K. Total Other Expenditures
L. Total Living Expenditures (add lines D - K)

$73,000
$15,000
$58,000

+

D.
E.

$16,200
$6,200

+
+
+
+
+
+
=

F.
G.
H.
I.
J.
K.
L.

$3,100
$8,475
$2,500
$750
$5,170
$14,630
$57,025

Total Available for Savings and Investments
C. After-Tax Income Available for Living
$58,000
Expenditures or Take-Home Pay
C.
$57,025
L. Total Living Expenditures (add lines D - K)
L.
M. Income Available for Savings and Investment
$975
(line C minus line L)
= M.

• Line D = $10,800 (rent) + $3,300 (utilities) +
$2,100 (furniture)
• Line G = $5,880 (auto payments) + $1,900
(transportation expense) + $695 (property tax)
• Line J
= $2,200 (medical) + $2,100 (auto) +
$720 (life) + $150 (renters)
• Line K = $1,200 (charity) + $9,700 (day care) +
$1,330 (miscellaneous) + $1,200 (credit cards) +
$1,200 (student loan repayment)

W3

WORKSHEET

Balance Sheet - Calculating Your Net Worth
Liabilities or Debts
Current Bills
I. Current Bills (unpaid balance)
Credit Card Debt
Visa
Master Card
Other Credit Cards
J. Total Credit Card Debt
Housing Loans
First...
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