Taking a Raise

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?