Julie is 40 and works as a physician. Her yearly income is $375,000 and she pays $70,000 in taxes. She works as an independent contractor at local hospitals. She has set up a Defined Benefit plan. She can contribute between $40,000 to $90,000 in her plan and this year she will contribute $75,000 in her DB plan. She drives a Mercedes and her lease payment is $899 per month. Her gas and car insurance costs are $6,000 per year. She lives in a 2 bedroom oceanfront apartment in Laguna Beach and pays $5,900 as rent. Her personal expenses are $2500 per month (dining out, clothes, nails, etc). She also likes to take one long international trip and spends $20,000 on it.  Her student loan payment is $2500 per month. She pays $600 for health insurance, $200 for internet and phone, $200 for gas and electric per month.

Her assets and liabilities include: 

• Student debt = $200,000
• Credit Card = $5,000 
• Defined benefit current balance = $550,000
• Old 403b = $28,000

1. What is her total monthly expense?
2. What is her total yearly expense?
3. How much is she saving now?  
4. How can she increase her savings be $3000 per month?

Answer rating: 100% (QA)

yearly expenses taxes70000 db plan75000 gas and car insurance6000 internat... View the full answer