Case Study $-10$ Marks

Financial Planning and Taxation

This case study explores the financial planning and taxation strategies of a fictional individual, Mr$.$ John Anderson. Mr$.$ Anderson is a $35-$year$-$old software engineer who is looking to optimize his financial situation while minimizing tax liabilities. The case study covers various aspects of financial planning, including income, expenses, investments, and tax planning.

John Anderson is a married man with two children. He works as a software engineer and earns an annual salary of $$120,000.$ His spouse, Sarah, is a part$-$time graphic designer who earns $$30,000$ annually. They have two children aged $5$ and $7.$ John and Sarah own a home with a mortgage, have a car loan, and contribute to retirement accounts. John is interested in optimizing their finances and minimizing their tax burden.

Questions:

a$)$ What is the total annual income for the Anderson family, including both John and Sarah?

b$)$ Are there any additional sources of income that need to be considered in their financial plan?