Financial Project. Rylee Jakabosky

Transcription

1 Financial Project Rylee Jakabosky

2 Table of Contents Introduction (about me) pg.1 Income Scenario pg. 2-3 Monthly Loan Payments/Expenses pg. 4-5 a.) Car loan b.) Mortgage Loan c.) Student loan d.) Credit card e.) Apartment Total Expenses pg. 5-6 Retirement pg. 6 Financial Analysis pg. 6 Conclusion pg. 6-7 Reflection pg. 7-8 Appendix pg Works Cited pg.10

3 About Me I have about one year and three and half months until I graduate from high school. In that time, I plan to work towards getting an above 4.0 GPA and by continuing to participate in at least one sport a school year. For the rest of my high school career if I m not busy doing sports, I plan on getting a job to save money for college. After high school, I plan on going to college to study biology or go into dentistry. I want to attend Seattle Pacific University in Seattle, Washington and after spending a couple of years in SPU s dorms, I want to find a small, inexpensive house to live in for the rest of my college years and afterward. Since I m not sure which career path I want to choose, I m not sure what job I want after college. One possible dream job is to work with teeth so I would try to find a job in a dentist office in downtown Seattle, or in one of the smaller towns outside of it. Being a news dentist in Seattle I would be paid about $120,000 since I haven t been working for very long. Although I plan on taking my current car, a 2013 Hyundai Accent up to college, in the event that I ll have to buy a new car, I would want a 2015 Mazda 6. Depending on how my health is, I would like to retire at around the age of 62. As soon as I get a steady job, I want to save 10-20% of my salary per month and put it towards my retirement.

4 Income Calculations Annual Salary $30,000 Federal Withholdings $3, Social Security $1,860 Medicare $435 Oregon Tax Withholdings $1, Net Monthly Income $1, Net Annual Income $22, Annual Salary $35,000 Federal Withholdings $4, Social Security $2, Medicare $ Oregon Tax Withholdings $2, Net Monthly Income $2, Net Annual Income $26,110.62

5 Annual Salary $45,478 Federal Withholdings $6, Social Security $2, Medicare $ Oregon Tax Withholdings $2, Net Monthly Income $2, Net Annual Income $32, Annual Salary $149,310 Federal Withholdings $31, Social Security $9, Medicare $2, Oregon Tax Withholdings $10, Net Monthly $8, Net Annual Income $96,025.67

6 Monthly Loan Payments/Expenses Vehicle (2015 Mazda 6) Cost of car: $16,945 Mileage per gallon: 32 Monthly gas expense: $65.60 (twice a month) Annual percentage rate:4 % Length of loan : 5 years Monthly Payment: $55.66 Insurance cost : $111 Monthly vehicle expense: $ House (Mortgage Loan) Mortgage Insurance: $205 Cost of House: $239,000 Type: 2 Bedroom/1 Bath Where: 7665 S. 135th St. Seattle, Washington Size: 910 sq. ft Heating/cooling cost: $95.55 Monthly property taxes: $ Annual Percentage Rate: 4.6% Term: 30 years Monthly Payment: $ Home Insurance:$ 45 Total Monthly Payment: $ Student Loans Cost of Education: $205,932 for 4 years Annual Percentage Rate: 6.2% Term of loan: 10 years Monthly Payment: $1, Credit Card Debt

7 Average Credit Card Debt: $15,355 Average APR: 14.9% Monthly Payment: $ Payoff time: 5 years Apartment Type: Studio/1 bath Location: 4219 S Othello St, Seattle, WA Size: 408 sq ft Monthly Rent: $1,138 Deposit $1,000 Heating/Cooling Cost: $36.72 Laundry: in unit Monthly Living Expense: $1, not including deposit Total Expenses Owning A Home Renting an Apartment Mortgage $205 Rent $1,138 Heating/Power $95.55 Heating/Power $36.72 Water/Trash/Utilities $86 Water/Trash/Utilities $86 Food $ Food $ Auto Insurance $111 Auto Insurance $111 Car Payment $ Car Payment $ Gas (car) $65.60 Gas(car) $65.60 Student Loan Payment $1, Student Loan Payment $1, Credit Card Payment $ Credit Card Payment $ Total Monthly Expenses $2,584 Total Monthly Expenses $3, Retirement Based on the the Kiplinger Calculator, in order to have an annual retirement income of $271,735.00, I need to save $1, a month along with any amount my employer will match. I should also get about $106, in annual social security and pension benefits. I ll retire at age 62 and I plan on living around 30 years after I retire.

8 Financial Analysis High School Diploma 2 Year Degree Monthly Income: $1, Monthly Income:$2, Less Monthly Expenses Mortgage:-$ Less Monthly Expenses Mortgage:-$ Less Monthly Expenses Apartment:-$1, Less Monthly Expenses Apartment:...-$1, Year Degree Dream Job (Dentist) Monthly Income:$2, Monthly Income:$ 8, Less Monthly Expenses Mortgage:$ Less Monthly Expenses Mortgage:$5, Less Monthly Expenses Apartment:-$ Less Monthly Expenses Apartment:...$4, Conclusion After looking at all my expenses, in order to live without any outside help I need to make a monthly income of at least $2, and not rent an apartment. However, if I had my dream job of being a dentist, I would make enough to live in both an apartment and house. If I wanted to save more money to put towards my retirement or just to reduce my monthly living expenses I could move somewhere else, since Seattle is an expensive to live, find a cheaper house or car, take the bus instead of using my car, or downgrade to the lowest food plan. If I wanted to reduce my college debt, which I definitely plan on doing, I would work hard to get scholarships. I plan on applying to any scholarship I qualify for and going to whichever college offers me the most money. I already have some money for college because my parents already have a college savings account for me, however I don t know how much is currently in it. When I actually go to college, I won t have car debts to pay because I already have a car that hopefully won t break down on me since it s fairly new (2013) and since my dad agreed to pay my car off by himself. But I might not even need my car because if I go to college in a city that has good public transportation, such as Eugene or Seattle, then I would try to save money on gas expenses by utilizing it. Some other expenses that weren t included in this project were vacations, clothing, phone bills, Netflix bills, gym memberships, savings account, clothing, going out to eat, and personal spendings.

9 Reflection This project gave students a glimpse of what their futures will look like (financially). Students had the opportunity to calculate how much their schooling will cost, as well as how much they have to pay a month for students loans, car payments, credit card debt, and house payments. Students also had to find a general amount that they d spend each month on things necessary things such as food, water, trash, utilities, heating, etc. Students learned how to calculate taxes based on their income and had the chance to practice using four different incomes, including our what our dream job s. We also used the Kiplinger Calculator to determine how much we should be saving for retirement and how much retirement we d get. However, this project didn t calculate my true plans. In this scenario, we were to assume that everything was a loan. So we had to pay all of our schooling, which I don t plan on doing. I plan on getting as many scholarships as possible so I won t have a lot of student debt. My parent s will also help assist me in paying for college, they re not going to let me take on all my debt by myself. I don t plan on buying a new car because the one I have currently is running fine and hopefully, will still be running decently while I m in college since it s only a three years old. Also, I plan on living in the dorms for the first few years I m at college and getting a house or apartment with roommates later on. Through this project I learned quite a few things. I won t list them all but some of the things were how to calculate how much money you ll get after taxes, and how to calculate how much to pay each month for different loans (car, house, credit card). I really enjoyed doing this project because it gave me a glimpse to what s waiting for me in the future. Before, I had no idea what college or life after would be like, especially financially. Now I have a ballpark idea on what it ll be like. This project was a wake up call for me because it showed me just how expensive everything is. This project was very useful to me because I feel like it taught me a lot of simple life skills that will help me in the future. Another reason why I really liked this project is because I love doing math. This entire project allowed me to put to use doing what I like to figure out information about my future. My favorite calculation was finding the net incomes. It was a tedious part and mistakes could be easily made, but I thought it was a fun process.

10 Appendix High School Diploma ($30,000) 30,000 x 0.062= $1,860 SSI 30,000 x = $435 Medicare Income Calculations Federal Tax 30,000-1, =27,705 (27,705-9,225)=18,480 x 0.15=2,772 9,225 x 0.1= Federal tax= $3, ,000-3, , ,080=$21, Base pay 660+((21, ,750) x 0.09)-179=$1, WH 30,000-1, , , =22, $1, per month 2 Year Degree ($35,400) 35,400 x 0.062=$2, SSI 35,400 x =$ Medicare Federal Tax 35,400-2, =$32, , ,225=$23, x 0.15= $3, ,225 x 0.1=$ Federal tax=$4, ,400-4, , ,080=$26, ((26, ,750) x 0.09)-179=$2, WH 35,400-2, , =$26, $2, per month 4 Year Degree ($45,478) 45,478 x 0.062=$2, SSI 45,478 x = $ Medicare Federal Tax 45,478-2, =$41, , ,450=$4, x 0.25= $1, ,450-9,225=$28,225 x 0.15= $4, ,225 x 0.10= $ Federal tax=$6,293.48

11 45,478-6, ,080-2, =$33, ((33, ,750) x 0.09)-179= $2, WH 45,478-2, , ,809.79=$32, $2, per month Dream Job ($149,310) 149,300 x 0.062=$9, SSI 149,310 x =$2, Medicare Federal Tax 149,310-9, ,164.10=$137, , ,750=$47, x 0.28=$13, ,750-37,450=53,300 x 0.25=$13,325 37,450-9,225=28,225 x 0.15= $4, ,225 x 0.10= $ Federal tax=$31, ,930-31, =$115, Base 660+((115, ) x 0.09)-179= $10, WH 149,310-9, , , ,182.93= $96, $8, per month Student Loan Payment r=6.2% N=60 n=12 P=205,932 t=10 Loan Payments R=205,932(0.062/12) 1-( /12)^-12(10) R=$1, per month Car Payment r=4% N=60 n=12 P=16,945 t=5 R=16,945(0.04/12) 1-(1+0.04/12)^-12(5) R=$55.66 per month Credit Card Payment

12 r=14.9% N=60 n=12 P=$15,355 t=5 R=15,355(0.149/12) 1-( /12)^-12(5) R=$ per month House Payment r=4.6% N=360 n=12 P=$239,000 t=30 R=239,000(0.046/12) 1-( /12)^-12(30) R=$ per month Works Cited Apartments.com Kelly Blue Book kiplinger.com Realtor.com Redfin.com spu.org