Please help,

Financial Plan Critique Assignment

Prepare a critique of the Financial Plan for Mary M. Martin specifically using all the steps for creating a personal financial plan.

For Guidance use the Steps in the Creating a Personal Financial Plan

Steps in the Creating a Personal Financial Plan

Step # 1:

Determine Your Current Financial Situation

Step # 2:

What are your Cash Flow Recourses

Step # 3:

Develop Your Financial Goals

Step #4:

Identify Alternative Courses of Action

Step #5:

Evaluate Your Alternatives

Step #6:

Create and Implement Your Financial Plan

Step #7:

Review and Revise your Plan

ABC Financial Group

Financial Plan for

Fill in clients name here

This financial plan has been prepared for Mary M. Martin with data supplied by the client. As such, ABC Financial Group takes no responsibility for assuring the accuracy of this financial plan.

Financial Goals

At ABC Financial Group our clients goals are always to secure a comfortable retirement after a lifetime of hard work. As such Mary M. Martin will need savings of $1,000,000 by the time she reaches age 65.

At ABC Financial group our stable of mutual Funds has an enviable track record of success. The following are the annual performance for the past one, three and ten years for our Funds (Using the financial calculator will make your work easier):

Canadian Equity Fund: 1 year 15.0%, 3 year, 7.25%, 10 year, 5.75%

Canadian Bond Fund: 1 year, 5.5%, 3 year 4.25%, 10 year 3.25%

Canadian Money Market Fund: 1 year .75%, 3 year, 1.00%, 10 year 1.5%

(note: the performance figures above exclude fees)

Recommendation

It is recommended that Mary M. Martin (age 25) invest in The ABC Financial Group Canadian Equity Fund in an amount of $562.09 per month. At a growth rate of 15%, Mary M. Martin will have saved $1,000,000 by age 65.

Client Supplied Financial Information

Name: Mary Natalie Martin

Date of Birth: March 30, 1995

Financial Goals: Pay off my student loans, the loan from my parents and save for a down payment on a house.

Current Occupation and Salary: Student, but I will start a new job in July. The annual salary will be $35,000.

Details:

Other: Monthly payment on my Credit cards.

Monthly expenses except for Rent are for my current apartment at College in Oshawa. I am not sure what Day Care will cost in Toronto. Also, I only pay for cable in Oshawa. The other utilities are included in my rent. The Toronto apartment does not include utilities.

Monthly Budget Net Income (after deductions) 2,917 $35,000 annual salary /12 2,917 Total Income Monthly Expenses 1,000 Rent 75 Utilities inc. cable/intemet 200 Insurance 300 Food 150 Day Care 200 Transportation 150 Entertainment 100 Alcohol and cigarettes 500 Tuition other 50 Total Expences 2,725 192 Monthly Cash Flow