Judy believes that another benefit of investing the extra $ 3,648 in her employer sponsored retirement plan is the tax savings. Judy is in a 25% marginal tax bracket. How much will investing in this manner save her in taxes annually? Assuming she remains in a 25% marginal tax bracket until she retires, how much will it save her in total over the next 15 years, ignoring the time value of the tax savings?
Answer to relevant QuestionsWhat are the three elements of planning to protect your assets? Define each element. What is an opportunity cost? What might be some of the opportunity costs of spending $10 each week on the lottery? Mia has $3,000 in assets, a finance company loan for $500, and an outstanding credit card balance of $135. Mia's monthly cash inflows are $2,000, and she has monthly expenses of $1,650. What is Mia's net worth? When does your net worth increase? Will the purchase of additional assets always increase your net worth? Why or why not? Explain how the Sampsons’ budgeting affects all of their other financial planning decisions.
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