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please help me understand all these questions For part 2 you will be creating a financial plan for yourself, since you're becoming adults soon, might
please help me understand all these questions
For part 2 you will be creating a financial plan for yourself, since you're becoming adults soon, might as well start now. Your financial plan will include what goals you want to achieve and how you are going to do it. The following need to be included in your financial plan: 1. How much do you want to save up during now and the end of university? How are you going to do it? What job will you have? How much will you make in total? How much does college/university cost? You can state whether or not your parents are helping you pay for school or if you plan on just working after high school. Be sure to include expenses like groceries or living costs if it is applicable. 2. Does it make sense to uber/bus every day or buy a car? If you buy a car the current interest is 3.79%/year, and you would be taking the loan between 5-7 years. Show you work to see what makes the most sense for you, car payments involve using simple interest. Find how much the difference is taking the bus vs. owning a car. 3. Let's say you put a lump of money when you turn 18 to invest into an index fund that gives you a return of 15% compounded monthly. You want to take this money out when you turn 50 so you can potentially retire early. Come up with an amount of money you are willing to put in when you're 18 (if you can put in 5k do it or ask your parents to lend you some money). Minimum contribution should be $3500, and the max should be $6000. If you start at 18 how much money will you have when you turn 50? 4. For the above scenario let's say you're lazy or are skeptical and don't start investing until you are 25. You end up contributing $6000 to an index fund that gives the same return. How much money will you have at 50 years old? What difference did it make waiting those extra 7 years to invest? 5. Find 5 stocks/etfs/cryto currencies you would be willing to invest in and explain your choices. Would you be willing to invest in the future and why? Explain why learning about financial literacy can you help plan your life accordingly Step by Step Solution
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