Question: Judy pays off her car loan and now must decide
Judy pays off her car loan and now must decide how she wants to invest the extra $ 3,648 per year that she budgeted for car payments. She decides to invest this additional amount in her employer sponsored retirement plan. Currently, the plan is averaging a 12% annual return. Judy has 15 years until retirement. How much more money will she have at retirement if she invests this additional amount?
Relevant QuestionsDefine personal financial planning. What types of decisions are involved in a personal financial plan? List some information available on the Internet that might be useful for financial planning. Describe one way you might use some of this information for financial planning purposes. Julia is considering trading in her car for a new one. Her new car payment will be $325 per month, and her insurance cost will increase by $60 per month. Julia determines that her other car-related expenses (gas, oil) will ...What are bonds? What are stocks? What are mutual funds? Describe how each of these provides a return on your investment. 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 ...
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