Using the Social Security Retirement Estimator( http:// www. ssa. gov / estimator /), determine your retirement age and estimate the retirement benefits you will receive from Social Security if you work to your full retirement age.
Estimate your necessary living expenses when you retire and calculate the shortfall between this amount and your estimated social security benefit.
Calculate how much you need in savings today to meet that shortfall, or alternatively, how much you need to save per month between now and your full retirement age to meet the shortfall.
Read“ Case in Point – A Single Father’ s Tax Situation” in Ch. 3 of your text. Answer the following questions:
What are Eric’ s major financial concerns in his current situation? In what ways might Eric improve his tax planning efforts? o Calculate the following:
· What is Eric’ s taxable income?( Refer to Exhibit 3-1)
· What is his total tax liability( Use the Tax Rate table)? What is his average tax rate?
Based on his withholding, will Eric receive a refund or owe additional tax? What is the amount?