Assume you are currently employed as a human resource specialist for a medium-size company. You have been in your job for a little over two years, and your current salary is $42,000 per year. Two months ago, your company announced it was going to implement a flexible benefit plan in conjunction with this year’s salary raises. Your annual salary review was held last week, and you were informed that your raise would be equivalent to $3,000. For your salary level, the following options are available:
1. Take the entire raise as a monthly salary increase.
2. Take as much of the $3,000 as you desire in the form of vacation at the equivalent of $200 per day.
3. Have as much as you desire of the $3,000 put into a tax-sheltered retirement plan.
4. Purchase additional term life insurance at the cost of $250 per $100,000 of face value.
5. Purchase dental insurance at the cost of $20 per month for yourself and $10 per month for each dependent.
The company currently provides full health insurance at no cost to employees. How would you elect to take your raise? Be prepared to share your answer with the class.