Your good friends Atticus (25) and Gert (26) are recently married and they have a 2-year old
Question:
Your good friends Atticus (25) and Gert (26) are recently married and they have a 2-year old baby boy, Obi. Gert spent the last year at home with her baby but now has returned to work at Roger Williams Zoo as an animal trainer, making $45,000 per year. Atticus has been working for Geico Insurance for over three years as an insurance adjuster and his salary is $65,000 per year. He does not have a college degree but could earn 50% more per year if he did. They feel that their combined income is more than enough to cover all their main fixed expenses and food purchases (around $80,000 per year) but are still having a hard time paying all their bills every month. They have no savings at this point and are not making contributions to retirement aside from paying the mandatory FICA taxes from their paychecks.
Atticus and Gert are planning to move to a larger place but unsure between renting and buying (they have never owned a home before). They are also unsure if they can afford a mortgage or even each type of mortgage are out there. They are currently paying $1,800/monthly on their condo rental.
They have auto insurance on their two vehicles ($100 deductible for each car) and a family health insurance plan from the zoo but no other forms of insurance. They have always filed their taxes as single individuals. Now, they are married and want to learn more about their options. They also hope to find ways to start saving for retirement and for Obi's future college education. Obi is currently attending a private preschool near their house.
Using what you learned in class, provide Atticus and Gert with specific recommendations/advice that reflect their current situation in the five topics below. You want to provide at least two (three is better than two) pieces of advice on each topic of the six topics below. You should write around 5-7 sentences for each topic - you can list then A to F, use bullet points or write in an essay style.
A) Budget/Savings
B) Housing
C) Retirement/Investing
D) Insurance
E) Taxes (remember: your advice on the other four areas might affect their taxes)
F) Their Child Obi or Atticus' education
P.S. - The advice should be based on their situation and include at least two clear recommendations on each section
Essentials Of Federal Taxation 2018
ISBN: 9781260007640
9th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver