W!SE Review - Money Management (CPS)

Car Payment, Mortgage, Rent, and Insurance Premiums are examples.

This form is received from your employer in late January and shows your total earnings & taxes withheld.

Save 10% of pay each month until 3-6 months of living expenses are saved. Creates emergency fund.

An asset that declines in value (like a car or electronics).

Net worth measures your wealth. How do you calculate net worth?

Anything of value that you own.

Which one is NOT an asset?

This form tells your employer how much to withhold for taxes from your gross pay. Complete for a new job or life change.

You have assets that total $10,000 and liabilities that total $7,000. What is your net worth and are you solvent?

Expenses that are expected and planned (part of your budget, can be either fixed or variable).

Outstanding debt that you owe such as loans.

Retirement plan also called a "Rollover IRA" when used to rollover funds from a 401-K plan. Tax-deferred.

If you have more debts than assets. Not a good thing!

Expenses that change each month like utilities, groceries, gas, and entertainment.

Which of the following is a short term goal?

When your income is less than your expenses (Income < Expenses).

Form 1040 must be filed by this date with the IRS to avoid a late penalty and interest if your owe taxes.

Retirement plan favoring younger employees. Contributions are portable (can rollover to another account). Tax-deferred.

What is the earliest age you can withdraw retirement money without the 10% early withdrawal penalty?

When your income equals your expenses & savings. Income = Expenses + Savings

Retirement plan with AFTER-TAX contributions (not tax-deferred). Future withdrawals will never be taxed again.