Term Project $-$ Comprehensive Personal Financial Plan

Purpose

In this assignment you are to develop your own full financial plan, including addressing your real short, mid$-$term

and long$-$term goals, as well as cover all six aspects of financial planning in detail, but concisely. The more

relevant you make this for yourself, the more useful it will be$.$ You will need to project $($assume$)$ your income after

graduation and base your cash flow and financial plans on that projection. Assume you will be working and

retiring in Canada.

Structure

Introduction:

Describe who you are, age, single or married, number of children if any, current living situation

Describe your current employment situation AND talk about your career aspirations and projected gross

annual salary based on that career

Four SMART Financial Goals:

All goals need to be specific, measurable, realistic, and include financial action steps and timing

You can reuse the same goals as the first assignment, or you can modify or change to different goals

One of the goals must be a retirement goal stated with all the SMART components $($this is separate from

your retirement planning section$)$

Financial Statements:

Professional formatting that is not too small or blurry to read. Numbers must be rounded to the nearest dollar

with no cents. All numbers are right aligned in one single column. Each statement cannot be split across multiple

pages. Double check all your additions and subtractions!

CASH FLOW STATEMENT

Complete one future monthly $($not annual$)$ cash flow statement based on projected income and

expenses after you start working in your career

Anrual year. $[5$ years Max$]$

BALANCE SHEET

This is a current snapshot of what you own and owe, NOT a projection!

Budget Reflection:

Reflect on your projected net cash flow and determine if it is sufficient to meet your stated financial goals

Strategies to reduce expenses

Is there enough emergency cash?

Credit Planning:

How you plan to pay off current or projected debts in the future like mortgage

Ways you can increase your credit score

Investment Planning:

State your investor risk profile

How to allocate your funds across different asset classes and types of investments $($diversification$)$

Your assumption for average annual investment return

Tax Planning:

Consider your marginal tax bracket based on your projected future income

Strategies to reduce taxes $($e$.$g$.$ deductions, tax credits, and registered plans etc.$)$

Insurance Planning:

Talk about your risk management strategies in property, health, life and disability insurance

Any existing coverage? Is it enough?

Reasonable rationale for not needing a particular insurance coverage WHY?