Economics

M2A2 Eric Mackey Tax issues associated with Financial Planning Case Study: Bill Smith, a manager of a restaurant/bar in Los Angeles, is in the 25% marginal tax bracket and pays an additional 5% in taxes to the state of California. Bill has $20,000 invested in corporate bonds which is currently earning an average annual return of 7.5%. Additionally, Bill also has another $20,000 invested in municipal bonds from the city of Los Angeles that are being used to redevelop depressed areas downtown. These bonds pay an average return of 5.4%. Assume that in both cases, Bill earns the same returns as calculated on both the corporate and municipal bonds each year for the next 15 years. Area?s addressed: What is the after-tax return on Bill?s corporate bonds for the current year? $1,050

M3 A2 Eric Mackey Which bank is Best Step 1: Using the large National Bank, the Regional/Local Bank, and the Credit Union you identified in the Module 1 Assignment 2, compare and contrast each institution by completing the Module 3 Assignment 2 template. Step 2: Once you have completed the Module 3 Assignment 2? template, create a financial portfolio. This financial portfolio is a professional one. Please follow the following instructions when preparing it: Identify, describe, and explain the financial institution that would be the best fit for you. Be sure to justify your selection by referencing the information collected in your completed template.

Retirement Planning Facilitator: Eric Mackey FIN201 M5A1 Individual Retirement Accounts Traditional IRA Pretax Contribution $5,500 (2014) or $6,500 if over age 50 Must take distributions at age 70 ? Contributions and earnings are taxable when withdrawn Can decide how money is invested Roth IRA Post Tax Contribution $5,500 (2014) or$6,500 if over age 50 No required distribution if original owner None if a qualified distribution Can decide how money is invested Case Study, $3,500 investmentT. Rowe Price Retirement Income Fund TRRIX Traditional IRA $3,500 tax deferred investment Rate of Return (Rate) 6.10% Number of Year (NPER) 30 Present Value (PV) 3500 Total Value after 30 years $20,679.00 Distributions are taxed Roth IRA $2,450 after tax contribution (30% tax bracket)