Investments 1. Pay stub a. Why is it less? i. Automatic deduction #1 government taxes 1. National income tax tax bracket 2. State income tax ( if state uses ) a. Sd does not/ sales taxis $6.5 3. Social Security Tax a. Pay 6.2% b. Employer matches c. Funded by payroll tax d. Claim early at 62 4. Medicare tax a. Pay 1.45% b. Employer matches ii. Deduction #2 Health Insurance (important benefit) 1. Average yearly cost per employee a. $14,000 i. On average the employer covers 70% of cost iii. Deduction #3 Retirement/Investing 1. Employee benefit a. Pension plan or 401(k) i. ALWAYS TAKE ii. Matching contribution iv. Investing 1. expectation of making a profit in the future a. Options i. Diversification 1. Variety of investments ii. Low Risk 1. Savings Account, Certificates of Deposit (CDs), Savings Bond iii. More Risk 1. Stock Market a. Stocks, mutual funds, etc 2. Impact of education on earning potential a. Positive correlation i. More education the more income potential b. Keep student loan debt under control i.
- Spring '18