Pete has a fantastic career opportunity in Washington D.C. He has…

Question Answered step-by-step Pete has a fantastic career opportunity in Washington D.C. He has… Pete has a fantastic career opportunity in Washington D.C. He has been offered a position at the White House in the communications office with President Biden’s administration that starts on June 1, 2022. Pete and Petunia realize it is expensive living in Washington D.C., so they will move to the Bethesda-Gaithersburg-Fredricksburg area in Maryland. Pete will commute to the White House on Metro. Petunia has found a job with a local accounting firm in Rockville, MD. Petunia is concerned that even though Pete will have a more substantial salary and her salary will increase, they might not be able to afford the move. Pete’s starting salary is $85,000 and Petunia’s is $85,000. Their household consists of them plus their children: Polly, age 15, Parker, age 10, and Penelope, age 5. Pete’s current salary is $35,000 and Petunia’s is $60,000.What advice would you give the family on figuring out if this is a good move, financially speaking?You may want to compare the cost of living between Las Cruces, NM, and Bethesda-Gaithersburg-Fredricksburg, MD,Q1) What types of financial planning tools should Pete and Petunia use in their decision-making process?Q2)How would they go about deciding whether they should rent or go ahead and buy a house? If they buy a house, what additional costs of homeownership might be in Maryland compared to Las Cruces, NM? (Remember insurance, whether homeowners’ or renters’ and property taxes, if they own a home).Q3)Pete is worried that his 1963 Chevrolet pickup might not make the 2,000-mile trip. What can you tell him about buying a different vehicle?Q4)If Pete is getting more money than he earned as a Pistol Pete mascot, does that mean he will have more money to spend? What about taxes? (Federal and state income tax, Social Security, Medicare, Real Estate taxes).You may want to compare locations on taxes by using this site (look at the bottom of the page): Income Tax Information (Links to an external site.) Q5)What employee benefits might Pete be eligible for as a federal government employee? Most businesses and government agencies provide benefit information on their website, such as the site below:United States Office of Personnel Management (Links to an external site.)United States Office of Personnel Management – Summary of Benefits – Healthcare (Links to an external site.) Q6)What about Pete’s NMSU retirement savings? Should he do something with his retirement savings? Should he enroll in the Thrift Savings Plan? What types of investments might he consider? Pete has 30 years left to work before he can retire.Thrift Savings Plan (Links to an external site.) Q7)What advice would you give Pete and Petunia about Estate Planning?                       Business Finance BMGT 175 Share QuestionEmailCopy link Comments (0)