Each part should be supported with extensive text explaining and supporting the details of your plan.
Part Two – List of financial goals (short, medium, and long-term) You should have a minimum of 3 for each type of goal.
Each goal needs to have the following:
1. Identify a specific thing (down payment on house) 2. Specific dollar amount ($30,000) not a range 3. Target number of years (in 7 years)
Goals should not be any expense that would already be part of your monthly living expenses – like rent or loan payment.
Part Three – Spread sheet (or flow chart) showing the following information for each goal.
Goal
Number of years to reach goal
Assumed inflation rate
Future value factor for goal
Amount needed to reach goal with inflation factored in
Assumed return on money invested for each goal (this will vary based on how long the money is invested)
Factor from annuity chart
Annual amount needed to reach each goal
Monthly amount needed to reach each goal
The total amount needed to reach all desired goals should be totaled and displayed.
Part Four – Spending plan –
a. Comprehensive spending plan for current lifestyle b. Include all goal savings requirements c. List or identify adjustments necessary to both goals and spending habits
Part Five – Create a portfolio for appropriate investment mix based on time, tolerance for risk, and experience. What portion will be in stock, bonds, or cash? List the specific mutual funds for each goal and explain why you selected the investment choices you have made. There should be an investment for every individual goal and 3-5 funds for your retirement bucket.
Part Six – Summary of if (or how) your awareness of personal finance issues has changed since the beginning of this course. Will you be making any changes in your investments? Has this class made any impact? If so how?
