What is residual income that is available to mr heffernan

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Reference no: EM132641061

Mr. Donald Heffernan, a 35 years old account manager At Wells Fargo has gross annual income after all deductibles of $85,000. Mrs. Heffernan quit her job at Walmart to take care of their twin kids, Luke and Christine. So Mr. Heffernan is the only income earner at his house hold.

Mr. Heffernan is filing income using the following "Married filing jointly" tax rate schedule.

Taxable income over Not Over Tax rate

$0 18,450 10%

18,451 74,900 15%

74,901 151,200 25%

151,201 230,450 28%

230,451 411,500 33%

411,501 464,850 35%

464,581 ....... 39.6%

Question 1: If Mr. Heffernan can actually stick to his financial plan, how long could his retirement savings afford for his living. Assuming that his estimated annual expenses after retirements is $48000, and that his retirement savings are going to be saved in a bank accounts that earns 2%.

Question 2: What is the residual income that is available to Mr. Heffernan after satisfying the needs for his financial plan?

Reference no: EM132641061

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