Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please find the instruction on the attached first fail after that you need to check the other fails to provide a full solutions. FIN-250: Personal

image text in transcribed

please find the instruction on the attached first fail after that you need to check the other fails to provide a full solutions.

image text in transcribed FIN-250: Personal Financial Management Semester-Project, Final In this assignment, you will demonstrate your mastery of the following course outcomes: Comprehend at a practical level the importance and benefit of applying theoretical principles to individual and family financial planning techniques Calculate and present basic short-term financial analyses which complement the lifelong support of individuals and families Compare and apply various long-term planning strategies for assessing successful retirement, estate, and investing choices, including basic tax effects Examine basic economic theory and apply to consumer spending and investment decisions for lifelong financial success This assignment will require you to establish a personal financial plan, reflecting your learning to date in the course. Now that you have an appreciation for designating long-term and short-term goals, you will be able to plan appropriately and make adjustments to benchmark your intentions for an objective view of your present status, as well as outline steps to make necessary changes to achieve your goals. Your completed financial plan will consist of all prior submissions completed in Parts One and Two. Part One detailed short-term planning and day-to-day financial needs as Part Two detailed long-term planning and future financial needs for assets such as a personal residence. As part of the final submission, you will also include any long-term retirement needs. This includes filling out and submitting the Retirement Planning and Personal Financial Goals Summarized worksheets. In the Retirement Planning worksheet, you will plan for retirement. You will likely identify a gap between your personal financial goals for a home, vehicle, and retirement planning versus the availability of your present resources. The objective is to develop an investment strategy, as a suggestion, with stocks of your choosing and/or mutual funds, which support your future financial needs. If any of the prior spreadsheets or files require updates as per your recognition of dynamics in your personal financial plan or suggestion by your instructor, incorporate those changes and revise your spreadsheets. In order to measure the amount required to fund a future mortgage, vehicle purchase, and retirement plan, the net present value of these amounts will have to be summarized. You will then need to take account of your present net assets from your personal balance sheet; include the values of any retirement accounts you presently have, such as a 401(k). This will allow you to determine the gap between your present wealth and your future needs. Next, select five mutual funds, including at least one U.S. stock mutual fund, one bond mutual fund and one international mutual fund, along with two others of your choosing. In an Excel spreadsheet, collect the following information on these funds: Fund name, ticker symbol, objective category, fund family, and 5-year average return. Presume you would invest 20% equally in these mutual funds and find the average annual return on this portfolio over the previous 5 years. (Related reminder: Past results are no guarantee of future returns.) You will also complete a new Personal Financial Goals spreadsheet. Finally, you will summarize and describe your analysis and intentions. Mention each spreadsheet specifically, and indicate how the purchase of these new goals will affect your prior plan submitted in parts one and two. Describe your opportunities and challenges. Will you have to make changes? Indicate how you might revise your plans. Requirements of Submission: Submit a final encompassing all prior submissions from Parts One and Two, plus the Mutual Fund data and Retirement Analysis. The total submission will include all completed spreadsheets plus three to five pages of commentary for the qualitative review and observations of your plan. You will submit the spreadsheets and mutual fund information on Blackboard as before. You will submit the final analysis and commentary on Chalk & Wire. Note: If you do not wish to disclose personal financial information to your instructor, please change your information or provide an alternative name with the information realistically portrayed. In doing so, the experience of preparing a financial plan for another individual will prepare you to accurately complete your own plan when you are ready. Also, do not disclose the information of an individual other than yourself; remember to keep private information private. Your Personal Financial Goals Worksheet Priority Level (0-5) Target Date or Time Horizon Current Total Cost Goals Future Anticipated Total Cost Rate of Return* Short-Term Goals (less than 1 year) Intermediate-Term Goals (1 to 10 years) Long-Term Goals (More than 10 years) * The rate of return for a debt reduction goal would be the interest rate of the term loan or revolving credit line. Required Savings (Annual if multiyear) Worksheet for Funding Your Retirement Needs Step 1: Estimate Your Annual Needs at Retirement A. Present level of your living expenditures on an after-tax basis B. Times 0.80 equals: Base retirement expenditure level in today's dollars x 0.80 C. Plus or minus: Anticipated change in living expenditures after retirement + or - D. Annual living expenditures at retirement in today's dollars on an after-tax = E. Before-tax adjustment factor, based on an average tax rate of ____% x Use Table 15.2 in Text F. Before-tax income necessary to cover the annual living expenses in line = Step 2: Estimate Your Income Available at Retirement G. Income from Social Security I today's dollars H. Plus: Projected pension benefits in today's dollars I. Plus: Other income in today's dollars J. Anticipated retirement income, in today's dollars [equals (lines G + H + I) + + = Step 3: Calculate the Annual Inflation-Adjusted Shortfall K. Anticipated shortfall in today's dollars (line f minus line J) L. Inflation adjustement factor, based on anticipated inflation rate of ____% Years until retirement = FVIF: as found in Appendix A M. Equals: Inflation-adjusted shortfall (line K x line L) Step 4: Calculate the Total Funds Needed at Retirement to Cover This Shortfall Over the Number of Years You Expect to Be Retired N. Expected annual return on your investment after retirement Inflation adjusted return Number of years after retirement = PVIFA: as found in Appendix D O. Funds needed at retirement to finance the shortfall = Step 5: Determine How Much You Must Save Annually Between Now and Retirement to Cover the Shortfall P. Expected annual return on your investment before retirement Years until retirement FVIFA: as found in Appendix C V. Amount that must be saved = = eds Your Numbers nd Retirement $0 $0 $0 $0 $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Science The Art Of Modeling With Spreadsheets

Authors: Stephen G. Powell, Kenneth R. Baker

3rd Edition

0470530677, 978-0470530672

More Books

Students also viewed these Finance questions

Question

=+d) Can you reject the null hypothesis of part c? Explain.

Answered: 1 week ago

Question

Distinguish between incremental and marginal costs. (pp. 38-40)

Answered: 1 week ago