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 ?