Financial Portfolio Project Part 4

.docx

School

Grand Canyon University *

*We aren’t endorsed by this school

Course

210-0500

Subject

Finance

Date

Apr 3, 2024

Type

docx

Pages

2

Uploaded by DukeFogPorpoise27

Report
Financial Portfolio Project Part 4 Kamden A. Irvin CONHCP, Grand Canyon University FIN-210: Personal Finance Professor: Megan Hanna February 18 th , 2024
Financial Portfolio Project Part 4 Following graduation, I will still be remaining as filling as a single taxpayer. If I were to stay at the same job I have now after graduation, with my current income level I would be in the 12% tax bracket which is $11,001 to $44,725. This is not my plan. I plan to quit my current job and get an entry-level healthcare administration job following graduation. With that level of income, I would go up into the 22% tax bracket. After graduation and obtaining new employment, to ensure that I lower my tax liability I will increase my retirement contributions as much as I can afford. The income tax paid each year is based on gross income. To reduce my gross income and tax liability I will contribute as much as I can afford to an employee-sponsored retirement plan. This is what my dad does to reduce his tax liability, and this will be my plan as well. The goal is a house that is worth no more than 300,000 dollars, over ten years and aims for at least a 20% down payment of 60,000 dollars. After calculations, over ten years to reach this goal I would need to save $500 a month. Interest rates are dependent on many conditions including the market, but after reading some articles I found that an average 30-year fixed mortgage rate is 3%. A fixed mortgage rate is a type of loan that offers stability as the interest rate and monthly payments remain the same throughout the loan term. If a $60,000 down payment is made on a $300,000 house, a loan of $240,000 will be borrowed. Using a mortgage calculator the monthly payments will be around $1,060. Calculating insurance which average is $100, interest rate of 3%, and property taxes vary but for this scenario, I will use 1.2%, the total PITI cost monthly will be around $1,820. The average as of a consensus in 2024 the monthly gross income of an entry-level healthcare administrative position is $7,857 a month. The PITI would amount to 23% of my monthly income.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help