Econ project final San Jose 5

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Econ project final San Jose 5

  1. 1. San Jose<br />William Jiang, Joseph Chin<br />Period 5<br />
  2. 2. Total Income and Taxation<br />Joseph Chin<br />Occupation: Biological Engineer<br />Initial Income: $55,000<br />Federal Income Tax: $7600<br />State Income Tax: $2510<br />Social security tax: $3410<br />Medicare Tax: $797.5<br />Total FICA: $4207.5<br />Total Taxes: $14,317.50<br />Disposable Income:<br />$55,000-$14,317.50= $40,682.50<br />
  3. 3. William Jiang<br />Financial Analyst<br />Initial Income: $60,000<br />Federal income tax: $8850<br />State Income Tax: $2987<br />Social Security Tax: $3720<br />Medicare Tax: $870<br />Total FICA: $4590<br />Total taxes: $16,427<br />Disposable Income: <br /> $60,000-$16,427= $43,573<br />
  4. 4. Saving<br />Joseph Chin<br />20% of disposable income$8136.50$6000 will go into a CD with Ally Bank1.2% APY, 12 month rate<br />$2136.50 will go into a checking account also with Ally Bank<br />William Jiang<br />10% of disposable income$4,400$3000 will go into a CD with Ally Bank1.2% APY, 12 month rate<br />$1,400 will go into a checking account also with Ally Bank<br />
  5. 5. Remaining Income<br />Joseph Chin <br />William Jiang<br />$40,682.50 - $8,136.50<br />= $32,546<br />$43,573 - $4,400<br />= $39,173<br />Headquartered in San Jose<br />
  6. 6. Housing<br />One Year Lease<br />Del Coronado Apartments5255 Camden Avenue San Jose, CA 951242 bed, 2 bath1020 sq. ft.<br />2 parking spaces<br />$1495 per month$1495 x 12 = $17940<br />Rent per person = $8970Deposit: $650<br />Deposit per person: $325<br />Apartment Pool<br />
  7. 7. Housing (cont.)<br />Renter's Insurance Cost: $200 annually<br />Per Person: $100<br />Total Cost of housing annually per person:$8970 + $325+$100 = $9420<br />Where We will Live<br />
  8. 8. Remaining Income<br />Joseph<br />$32,546 - $9,420<br />= $23,126<br />William<br />$39,173 - $9,420<br />= $29,753<br />All based in Silicon Valley<br />
  9. 9. Healthcare<br />Joseph Chin<br />William Jiang<br />Blue Shield Vital Shield Plus 900 <br />Generic Rx<br />Type: PPOCost $107 per monthDeductible: $900Out of pocket maximum: $3900$30 for first 4 visits per member per year, then $0 after out-of-pocket maximum<br />Individual planThus $30 x 4 = $120$107 x 12 = $1284$120 + $1284 = $1404<br />$1404 annually<br />Anthem Blue Cross of California: <br />ClearProtectionPlus 1000<br />Type: PPOCost: $88 a month$1000 deductible40% coinsuranceindividual planWith 40% co-pay, I would have to add $400for doctor visits and examinations<br />$1,456 annually<br />
  10. 10. Remaining Income<br />Joseph<br />William<br />$23,126 - $1,404 <br />= $21,722<br />$29,753 - $1,456<br />= $28,297<br />
  11. 11. Transportation<br />Joseph Chin <br />Public Transportation<br />The VTA is operated by the Santa Clara Valley Transportation Authority. Bus and light rail routes penetrate almost every major street and intersection in San Jose.<br />Annual Pass: $770<br />Public Light Rail in San Jose<br />
  12. 12. William Jiang<br />Car Lease<br />2011 Mazda 3Initial fee: $1773$179/month, $2,148 per year.36 month leaseTaxes and Fees: $200Car Maintenance: $500<br />Gas prices per gallon in San Jose ($3.85)7,000 miles of driving in 1 year25 mpg280 gallons in 1 yearGas Costs annually: $1,078<br />Insurance:State Farm Auto InsuranceStandard CoverageFor Mazda 3 model: $190 per month, $2280 annually<br />Total Cost of William Jiang's Transportation Per Year$1773+$2148+$700+$1078+$2280=$7,979<br />Mazda3 4 Door<br />
  13. 13. Remaining Income<br />Joseph<br />William<br />$21,722 - $770<br />= $20,952<br />$28,297 - $7,979<br />= $20,318<br />
  14. 14. Utilities<br />Shared Costs<br />Comcast Internet and Cable<br />Cable: $40High Speed Internet: $30$70 per month$840 annually<br />Electricity and Gas$45 per month$540 annually<br />Water$16.93 per month$203.16 annually<br />Shared Costs: ($840+$540+$203.16)/2 = $791.58<br />
  15. 15. Remaining Income<br />Joseph<br />William<br />$20,952 - $791.58<br />= $20,160.42<br />$20,318 - $791.58<br />= $19,526.42<br />
  16. 16. Food<br />Joseph Chin<br />William Jiang<br />The cost of food as estimated by the USDA is $345.6 per month or $345.6 x 12 = $4147.2<br />Eat out a moderate amount and buy high quality groceries for home<br />So food: $10000<br />Furniture $500<br />House hold supplies $400<br />TV<br />Dynex™ - 40" Class / 1080p / 60Hz / LCD HDTV$500<br />Eat home cooked meals during the weekdays and eat out on the weekends<br />Roughly $120 a week, $6,240 a year <br />Household Supplies: $300<br />
  17. 17. Remaining Income<br />Joseph<br />William<br />$20,160.42 <br />- $10,000 (Food)<br />- $500 (Furniture)<br /> - $400 (Household Supplies)<br />- $500 (T.V.)<br />= $8,760.42<br />$19,526.42<br />- $6,240 (Food)<br />- $300 (Household Supplies)<br />= $12,986.42<br />
  18. 18. Extracurricular Activities<br />Joseph Chin<br />William Jiang<br />Clothes: $1200<br />Video games: $600<br />Magazine Subscriptions $60<br />Books for reading $300<br />Money for holiday gifts for family and friends $500<br />Miscellaneous spending $500<br />Golf: $9,500<br />Video Games: $120<br />Phone: iPhone 4 $200AT&T Data Plan:$25/month, $300 a yearTotal Phone Costs: $500<br />
  19. 19. Extracurricular Activities (cont.)<br />Joseph Chin<br />William Jiang<br />iPhoneCost of phone $200Cost of data plan = $90 per monthannual cost $90 x 12 = $1080$200 + $1080 = $1280<br />iPadCost of iPad64 GB: $829.00Cost of data plan10GB Plan $80 per month$80 x 12 = $960Total cost of iPad$829 + $960 = $1789<br />Total Extracurricular activity spending $6229<br />24 Hour FitnessOne year limited term$300<br />Movie Theaters: $200<br />Golf Digest Magazine Subscription: $15<br />Clothes: $500<br />Holiday Gifts: $300<br />Miscellaneous Spending: $500<br />Total Extracurricular Costs: $11,935<br />
  20. 20. Remaining Income<br />Joseph<br />William<br />$8760.42 - $6,229<br />= $2,531.42<br />$12,986.42 - $11,935<br />= $1,051.42<br />
  21. 21. The End<br />Joseph Final<br />William Final<br />Savings: $8,136.50<br />Housing Costs: $9,420<br />Healthcare: $1,404<br />Transportation: $770<br />Utilities: $791.58<br />Food/Supplies: $11,400<br />Extracurricular Activities: $6,229<br />Remaining Income: $2,531.42<br />Savings: $4,400<br />Housing Costs: $9,420<br />Healthcare: $1,456<br />Transportation: $7,979<br />Utilities: $791.58<br />Food/Supplies: $6,540<br />Extracurricular Activities: $11,935<br />Remaining Income: $1,051.42<br />
  22. 22. Joseph’s Analysis<br />My total spending is $38151.08This $2531.42 less than my disposable income (assuming that none of the money will be spend on unlisted). Even then, I still would have at least $1750 left over.I already knew that I would not need that much money before starting on this project since I do not spend that much. For example, I do not watch movies in the movie theater since normally I cannot hear what is going on nor do I do much exercise beyond walking. This goes hand in with my usage of public transportation. I will get my exercise by walking to where ever the public transportation will not go to directly, rather than get a gym membership. Most of the time spent on this project was finding ways to spend my money and to find housing. Things that I added to spend my money are the iPad and iPhone. I could have said that I would continue to use my old laptop from college. Personally, I do not need that much money to spend since I do not go out that much and I would prefer to play video games or surf the internet rather than take a vacation elsewhere. This is why I did not try to budget in a car or vacation and why I decided on using an iPhone and iPad to take care of my internet surfing.<br />
  23. 23. William’s Analysis<br />Total spending: $42521.58<br />This is $1051.42 less than my disposable income, and the amount I thought I would probably have left when I first started the project. I was lucky to draw the $60,000 because of my spending on golf. Golf is about 1/4 of my disposable income, which is a huge chunk on my budget. I found that researching the information and calculating all the costs were painstaking because almost every detail has to be included in various costs. But I know doing this project will only benefit me in the future, when I really need to budget. $1000 left over is not much at all. If I have a girlfriend, I am pretty sure this extra would be wiped off. A few more doctor visits and rounds of golf would also negate the extra left. I would most likely keep my college computer and T.V., so that is why I did not factor these costs. But most likely extraneous fees and costs are hidden somewhere that are unable to be calculated through internet only. Finally I am not a vacation person because I feel that every time I am on the golf course, I am on vacation. Overall I found out a lot about San Jose, more so than I could have imagined before I began the project.<br />
  24. 24. Works Cited<br />Ally Bank. "High Yield CD: Great Rate CDs | Ally Financial." CDs, Money Market, Savings & Checking | Ally Financial. Ally Bank, 2011. Web. 08 June 2011. <https://www.ally.com/bank/high-yield-cd/index.html?CP=ppc110124>. <br />Ally Bank. "Online Checking Account: High Interest Checking Accounts | Ally Financial." CDs, Money Market, Savings & Checking | Ally Financial. Ally Bank, 2011. Web. 08 June 2011. <https://www.ally.com/bank/interest-checking- account/>. <br />Apple. "Apple IPad 2 - Buy IPad 2 Wi-Fi & IPad Wi-Fi 3G - Black or White, Two Cameras, HD Recording, A5 Chip - Apple Store (U.S.)." Welcome to the Apple Store - Apple Store (U.S.). Apple, 2011. Web. 08 June 2011. <http://store.apple.com/us/browse/home/shop_ipad/family/ipad/select?mco=MjE0OTI0MDI>. <br />Best Buy. "Dynex™ - 40" Class / 1080p / 60Hz / LCD HDTV." Dynex™ - 40" Class / 1080p / 60Hz / LCD HDTV. Best Buy, June 2011. Web. 7 June 2011. <http://www.bestbuy.com/site/Dynex%26%23153%3B+- +40%22+Class+/+1080p+/+60Hz+/+LCD+HDTV/1894176.p?id=1218315559764&skuId=1894176>. <br />Blue Shield. "Health Insurance Coverage." FInd Health Insurance Coverage in California. Blue Shield, 7 June 2011. Web. 7 June 2011. <https://bscapply.com/phx/action/quoteSetValues?action=initialize&pageName=homepage>. <br />Comcast. "Comcast-Step 1." Comcast. Comcast, 07 June 2011. Web. 07 June 2011. <https://secure.bridgevine.com/buyflow43/index.php>. <br />Department of the Treasury—Internal Revenue Service. "1040ez." F1040ez.pdf. Department of the Treasury—Internal Revenue Service, 2010. Web. 7 June 2011. <br />Ebay. "Del Coronado Apartments in San Jose, CA." Apartments for Rent & Homes for Rent - Rent.com® Apartment Finder. Ebay. Web. 07 June 2011. <http://www.rent.com/rentals/california/san-jose-south-bay-and-peninsula/san-jose/del- coronado-apartments/481678/?sp=1>. <br />EHealthInsurance Services, Inc. "Health Insurance." Health Insurance- Find Affordable Health Insurance. EHealthInsurance Services, Inc, 7 June 2011. Web. 7 June 2011. <https://www.ehealthinsurance.com/ehi/ifp/best- sellers?sortOption=PRICE>. <br />Game Stop. "Search GameStop." Games for Xbox 360, PS3, Wii, DS, 3DS, PS2, PSP, Used & PC Consoles | GameStop. Game Stop, 7 June 2011. Web. 7 June 2011. <http://www.gamestop.com/browse?nav=16k-x+box+360+games>. <br />Game Stop. "Xbox 360 Live 12 Month Gold Card for Xbox 360 | GameStop." Games for Xbox 360, PS3, Wii, DS, 3DS, PS2, PSP, Used & PC Consoles | GameStop. Game Stop, 08 June 2011. Web. 08 June 2011. <http://www.gamestop.com/xbox- 360/accessories/xbox-360-live-12-month-gold-card/40944>. <br />Gamestop. "Search | GameStop." Games for Xbox 360, PS3, Wii, DS, 3DS, PS2, PSP, Used & PC Consoles | GameStop. Gamestop, 0 8 June 2011. Web. 08 June 2011. <http://www.gamestop.com/browse/games/nintendo-ds?nav=1386-177>. <br />
  25. 25. Works Cited (cont.)<br />Gasbuddy.com. "San Jose Gas Prices - Find Cheap Gas Prices in California." San Jose Gas Prices - Find Cheap Gas Prices in California. Gasbuddy.com, 08 June 2011. Web. 08 June 2011. <http://www.sanjosegasprices.com/>. <br />Mazda. "Mazda Shopping Tools." Mazda. Mazda, 2011. Web. 7 June 2011. <http://www.mazdausa.com/MusaWeb/displayRegionalIncentives.action?vehicleCode=&zip=95124&submit.x=15&sub mit.y=9>. <br />Pacific Gas and Electric. "Understand Your Electric Charges." Pacific Gas and Electric Company. Pacific Gas and Electric, 1 Mar. 2011. Web. 07 June 2011. <http://www.pge.com/myhome/myaccount/charges/>. <br />San Jose Water Company. "San Jose Water Company." Sjwater. San Jose Water Company, 27 Dec. 2010. Web. 7 June 2011. <http://www.sjwater.com/content/rates/tariff_book/schedule1_20110126.pdf>. <br />Santa Clara Valley Transportation Authority. "VTA Fares." Santa Clara Valley Transportation Authority. Santa Clara Valley Transportation Authority, 2011. Web. 08 June 2011. <http://www.vta.org/schedules/fares/vta_fares.html>. <br />Santa Teresa Golf Club. "Santa Teresa Golf Club." Santa Teresa Golf Club. Santa Teresa Golf Club, 2011. Web. 08 June 2011. <http://www.santateresagolf.com/page.php?page_id=330>. <br />State Farm. "Http://online2.statefarm.com/apps/fastestimate/default.aspx?lob=Auto&product=PRIVATE_PASSENGER&stateProv =CA&zipPost=95124&city=San%20Jose&wt.mc_id=FE." State Farm FastEstimate. State Farm, 7 June 2011. Web. 7 June 2011. <http://online2.statefarm.com/apps/fastestimate/default.aspx?lob=Auto&product=PRIVATE_PASSENGER&stateProv =CA&zipPost=95124&city=San%20Jose&wt.mc_id=FE>. <br />State of California Franchise Tax Board. "California Resident Income Tax Return 2010." 10_5402ezm.pdf. State of California Franchise Tax Board, 2010. Web. 7 June 2011. <br />USA Social Security Administration. "FICA & SECA Tax Rates." The United States Social Security Administration. USA Social Security Administration, 29 Dec. 2010. Web. 08 June 2011. <http://www.ssa.gov/OACT/ProgData/taxRates.html>. <br />USDA. "Cost of Food April 2011." CostofFoodApr2011.pdf. USDA, May 2011. Web. 7 June 2011. <http://www.cnpp.usda.gov/Publications/FoodPlans/2011/CostofFoodApr2011.pdf>. <br />Verizon. "Nationwide Talk Calling Plans." Cell Phones - Smartphones: Cell Phone Service, Accessories - Verizon Wireless. Verizon, 2011. Web. 08 June 2011. <http://www.verizonwireless.com/b2c/store/controller?sortOption=priceSort>. <br />Verizon. "Verizon Wireless - Mobile Broadband - Plans." Cell Phones - Smartphones: Cell Phone Service, Accessories - Verizon Wireless. Verizon, 2011. Web. 08 June 2011. <http://www.verizonwireless.com/b2c/mobilebroadband/?page=plans>. <br />

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