Financial Planning Project

MAT$142-$ Pendleton

Due: May $6,2024$

Project Summary: You will conduct a study to plan out a potential financial path for through retirement. You will need to propose a budget based on your desired career, calculate the mortgage for your first home, and make a plan for retirement. Your final project should be typed and must include all report requirements listed at the end of this document.

Project Details:

Choose a profession that you are considering. Research the average starting salary for that profession. Report what profession you chose and what the starting salary is$.$

Create a monthly budget based on the average salary you found in part $1.$ You can use any resource $($web$,$ parents, personal experience, etc.$)$ to estimate each of these categories, but your estimates but be justified. Do not just pull numbers out of the air! Your budget should include the following:

a$.$ Monthly income

b$.$ Tax withholding $($estimate your taxes$)$

c$.$ Mortgage $($See part $3)$

d$.$ Food

e$.$ Utilities $($Gas$,$ electric, water$)$

f$.$ Entertainment $($TV streaming services, activities, etc.$)$

g$.$ Transportation $($car payment, bus pass, gas, etc.$)$

h$.$ Medical costs $($insurance$,$ out of pocket doctor's costs, medications, etc.$)$

i$.$ Savings and Donations

j$.$ Any other categories you may need to include

Be sure your expenses are not more than your income! If needed, make adjustments where you can in your budget until it is balanced. Show me how much money you will have left at the end of the month. This number must be equal to or greater than $0!$

Go to a real estate website $($

Zillow.com,

realtor.com$)$ and find a home that meets your desired criteria. Make note of the listing price. Look up current annual interest rates for fixed rate $30$ year home loans. Figure out what your monthly payment would be if you were to take out a $30$ year loan at the interest rate you found. Assume that interest is compounded monthly. Use this monthly payment amount in your budget in part $2.$ Include in your report a picture of the house $($including the listing price$),$ the interest rate you used, and your monthly mortgage payment.

Let's say you would like to have $$2$ million in savings by the time you retire. This would allow you to live off of $$80,000$ each year. Assume you can invest today in the stock market and get a $12\%$ return over a long run $(15+$ years$).$ How much would you need to invest monthly to reach your retirement goal by the time you are $65$ years old?

$$ Can you add a pictuive for

All of this