Introduction:

In this individual assignment, you will be provided with a case study. Your task is to evaluate the provided information and develop a written financial plan within a maximum of 8 pages. The financial plan should cover various aspects, including assumptions, key considerations, recommendations, financial analysis, and strategies for the case study individual or family. You must apply all subjects being discussed in the lectures.

Use all available up to date information or make assumptions if the information is not available if needed.

Table of Contents:

Your written financial plan should be structured with the following sections:

Assumptions and Key Considerations:

• Clearly outline the assumptions made during the financial planning process, such as inflation rates, investment returns, and other relevant factors.
• Identify key considerations from the case study that may impact the financial plan's development.

Recommendations:

• Summarize the core recommendations for the case study individual or family. Provide a high-level overview of the proposed financial strategies.

Financial Analysis:

• Conduct a thorough financial analysis based on the case study to understand the current situation.

Net Worth:

• Calculate and evaluate the case study's net worth by considering all assets, liabilities, and equity. Discuss the implications of the net worth analysis.

Cash Flow:

• Examine the cash inflows and outflows to determine the case study's cash flow position. Analyze cash flow patterns and offer suggestions for improvement.

1. Come up with a budget.

Strategies:

• Present a comprehensive set of financial strategies tailored to the case study's goals and financial situation. Include strategies for investment, risk management, tax planning, and more.

Insurance Coverage:

• Evaluate the existing insurance coverage and propose any necessary adjustments or additional policies based on the case study's needs and risk profile.

Retirement:

• Develop a retirement plan, considering retirement goals, sources of income, and investment strategies to ensure a secure and comfortable retirement.

Education:

• If applicable, outline a plan for funding education expenses, taking into account the case study's objectives and time horizon.

Major Purchase:

• If relevant, provide recommendations and financing options for significant purchases, considering the impact on the overall financial plan.

Emergency Fund:

• Suggest an appropriate emergency fund amount and location for the case study individual or family.

Case Study:

Meet Alex (aged 35) and Morgan (aged 32), a married couple residing in a metropolitan area. Both are successful professionals with stable incomes and a desire to secure their financial future. While they have been diligent in managing their money, they recognize the importance of refining their financial strategy to align with their life goals. The couple has a mix of short-term and long-term objectives, including homeownership, education planning for future children, and building a retirement nest egg. At this moment, Alex and Morgan are uncertain about the effectiveness of their current budgeting approach. They wonder how they can optimize their spending habits to achieve a better balance between lifestyle enjoyment and savings. The couple is also unsure about the adequacy of their emergency fund and wants guidance on managing existing debts. As a couple both Alex and Morgan have multiple financial goals, including homeownership and education planning but they are uncertain about the prioritization and timelines for these goals.