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Assignment 2: Tax Issues Associated with Financial Planning
Understanding the tax consequences of your financial planning decisions is very important. These decisions may sometimes have life-long consequences in addition to a one-time result.
For example, when a person decides to save for retirement, there are tax consequences for each year when money is added to the account as well as when it grows. There are additional consequences later when that person decides to retire and use the money to live on.
This assignment looks at another example of tax issues associated with financial planning. You will look at the use of tax-exempt investment instruments such as municipal bonds, as an alternative to traditional investments, and corporate bonds or stocks.
Consider the following:
Answer the following:
Present the calculations and answers in Excel spreadsheet format or in Word format. Write the interpretation of results in a Word document. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A2.xls and LastnameFirstInitial_M2_A2.doc.
By Wednesday, December 4, 2013, deliver your assignment to the M2: Assignment 2 Dropbox.
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