INSTRUCTIONS FOR SEMESTER PROJECT OBJECTIVE: The objective of this project is to develop a comprehensive financial plan for: 1) the next year (12 months) as well as 2) five years out. This will allow you apply the concepts leamed through the semester by setting out goals and the financial plan for achieving those goals. PART I: SELECTING SCENARIO: The first part of this project is selecting your scenario. Ideally, you would be working on your own personal plan. However, I understand that working on our personal plan is not something that everyone wants to share. As a result, you have the option to work on a fictitious plan, meaning that the initial starting point (current financial situation) as well as the future plans can be completely made up. Should you choose to prepare a fictitious plan, you are expected to be preparing a plan for someone in your age category and you are expected to make it as realistic as possible. Once your scenario is decided you need to document the overall summary of the current financial situation as well as the over goals for the next 12 month and 5 years. DUE DATE: A draft of your scenario description is due October 16, 2020. PART II: IDENTIFYING DILEMMAS Identify at least 4 dilemmas that will be documented throughout your plan. You need to identify the dilemmas as well as decide on a chosen course of action with regard to your dilemmas. Your plan should reflect your chosen course of action Examples of dilemmas (this is a short list to help you, it is not an exhaustive list): . Buy (new or used) car or lease? Move out or stay home with parents? Rent apartment, buy condo, buy house? Live is city or suburbs? Go to university or begin working? Work part-time to pay for school or take loans? Your dilemmas should not only be listed but pros and cons of each should be considered and documented, and a final decision made. If the final decision required research of any kind, the research should be included in an appendix to your report DUE DATE: Draft dilemmas should be selected and handed in by October 23- 2020. PART II: IDENTIFYING SOURCES OF INCOME AND EXPENSES In this phase of the project you will identify all the sources of income and all of the expenses you expect as a result of your scenario and dilemmas. RULES: 1. Income level should be realistic. Your income level should be reflective of the scenario that you have selected. You may need to do some research to find out what a realistic wage is for your selected scenario. Be sure to include your research results in your appendices. Remember you are going to be preparing cashflows for both the next 12 months as well as 5 years from now. This means you may have multiple wage rates to consider 2. You must include at minimum one additional source of income other than your work wages i.e. interest on investments) 3. Your expense list should be comprehensive and include the many different expenses that have been discussed in class and that are in readings from the text book. They should be realistic! For example, if you have a car or plan on buying one, make sure you include expense like: insurance, gas, drivers' licence, registration, etc... THIS PART WILL TAKE TIME!!!! YOU WILL NOT COMPLETE THIS IN 15min!!!! Use the people around you to gain insights and information 4. Chapter 16 pages 466-471 are great resources to help guide you in this project. 5. YOU MUST include at least one large purchase in your plan as well as one investment strategy STEP IV: DEVELOP CASHFLOWS FOR 1 YEAR AND 5 YEARS OUT Based on all of the information gathered in parts 1-8, develop a one-year cashflow for the year to come as well as a 5-year cashflow in the five-year cash flow show the cashflows per year). This part of the project must be completed in excel Year one should be broken down by month (therefore you should have 12 months) Years 1-5 should only show annual income and expenses See template provided SEPT V: CALCULATED AND PRESENT EXPECTED NET WORTH Based on the information gathered in septs I-IV, calculate the expected net worth at the end of year 1 and year 5. This should be completed in excel See template provided This project will be discussed in detail in class on Wednesday October 7, 2020. Additional information sessions will be given during UB on the following dates: October 14, 2020 October 28, 2020 November 25, 2020 FINAL PROJECT IS DUE LAST DAY OF CLASS; DECEMBER 14th, 2020 MARKING KEY FOR PERSONAL FINANCIAL PLANNING SEMESTER PTOJECT MARKING KEY FOR PERSONAL FINANCIAL PLANNING SEMESTER PTOJECT Worth 10% of total assignment grade FORMAT: Student used APA formatting including: 1. Proper presentation of report 2. Proper font type and sire 3. Proper referencing as necessary 4 2 4 Worth 10% of total assignment grade 3 LANGUAGE: Student used proper business language throughout report, including: 1. Used terms learned in class and throughout reading material 2. Report is written with grammatically correct sentences and paragraphs 3. Report is free from any and all spelling errors 4. Student paid attention to sentence structure. 3 3 1 Worth 80% of total assignment grade 5 3 PROJECT CONTENT: Student followed assignment instructions and guidelines provided a complete/ comprehensive financial plan. 1. Student adequately introduced selected scenario that is supported by the plan 2. Student considered the TVM 3. Student considered tax implications 4. Student considered a comprehensive, realistic list of expenses S. Student considered multiple sources of income 6 Cashflows were projected for 1 year and 5 years 7. Net worth was projected for 1 year and years out B. Student included dilemmas and solutions for dilemmas. 9. Student provided adequate documentation to support all decisions in the plane Salary, rent, food, insurance, etc.) 10. Student considered various investing options and selected at least one, with explanation of choice including how it fits into plan. 10 8 10 10 10 10 10 INSTRUCTIONS FOR SEMESTER PROJECT OBJECTIVE: The objective of this project is to develop a comprehensive financial plan for: 1) the next year (12 months) as well as 2) five years out. This will allow you apply the concepts leamed through the semester by setting out goals and the financial plan for achieving those goals. PART I: SELECTING SCENARIO: The first part of this project is selecting your scenario. Ideally, you would be working on your own personal plan. However, I understand that working on our personal plan is not something that everyone wants to share. As a result, you have the option to work on a fictitious plan, meaning that the initial starting point (current financial situation) as well as the future plans can be completely made up. Should you choose to prepare a fictitious plan, you are expected to be preparing a plan for someone in your age category and you are expected to make it as realistic as possible. Once your scenario is decided you need to document the overall summary of the current financial situation as well as the over goals for the next 12 month and 5 years. DUE DATE: A draft of your scenario description is due October 16, 2020. PART II: IDENTIFYING DILEMMAS Identify at least 4 dilemmas that will be documented throughout your plan. You need to identify the dilemmas as well as decide on a chosen course of action with regard to your dilemmas. Your plan should reflect your chosen course of action Examples of dilemmas (this is a short list to help you, it is not an exhaustive list): . Buy (new or used) car or lease? Move out or stay home with parents? Rent apartment, buy condo, buy house? Live is city or suburbs? Go to university or begin working? Work part-time to pay for school or take loans? Your dilemmas should not only be listed but pros and cons of each should be considered and documented, and a final decision made. If the final decision required research of any kind, the research should be included in an appendix to your report DUE DATE: Draft dilemmas should be selected and handed in by October 23- 2020. PART II: IDENTIFYING SOURCES OF INCOME AND EXPENSES In this phase of the project you will identify all the sources of income and all of the expenses you expect as a result of your scenario and dilemmas. RULES: 1. Income level should be realistic. Your income level should be reflective of the scenario that you have selected. You may need to do some research to find out what a realistic wage is for your selected scenario. Be sure to include your research results in your appendices. Remember you are going to be preparing cashflows for both the next 12 months as well as 5 years from now. This means you may have multiple wage rates to consider 2. You must include at minimum one additional source of income other than your work wages i.e. interest on investments) 3. Your expense list should be comprehensive and include the many different expenses that have been discussed in class and that are in readings from the text book. They should be realistic! For example, if you have a car or plan on buying one, make sure you include expense like: insurance, gas, drivers' licence, registration, etc... THIS PART WILL TAKE TIME!!!! YOU WILL NOT COMPLETE THIS IN 15min!!!! Use the people around you to gain insights and information 4. Chapter 16 pages 466-471 are great resources to help guide you in this project. 5. YOU MUST include at least one large purchase in your plan as well as one investment strategy STEP IV: DEVELOP CASHFLOWS FOR 1 YEAR AND 5 YEARS OUT Based on all of the information gathered in parts 1-8, develop a one-year cashflow for the year to come as well as a 5-year cashflow in the five-year cash flow show the cashflows per year). This part of the project must be completed in excel Year one should be broken down by month (therefore you should have 12 months) Years 1-5 should only show annual income and expenses See template provided SEPT V: CALCULATED AND PRESENT EXPECTED NET WORTH Based on the information gathered in septs I-IV, calculate the expected net worth at the end of year 1 and year 5. This should be completed in excel See template provided This project will be discussed in detail in class on Wednesday October 7, 2020. Additional information sessions will be given during UB on the following dates: October 14, 2020 October 28, 2020 November 25, 2020 FINAL PROJECT IS DUE LAST DAY OF CLASS; DECEMBER 14th, 2020 MARKING KEY FOR PERSONAL FINANCIAL PLANNING SEMESTER PTOJECT MARKING KEY FOR PERSONAL FINANCIAL PLANNING SEMESTER PTOJECT Worth 10% of total assignment grade FORMAT: Student used APA formatting including: 1. Proper presentation of report 2. Proper font type and sire 3. Proper referencing as necessary 4 2 4 Worth 10% of total assignment grade 3 LANGUAGE: Student used proper business language throughout report, including: 1. Used terms learned in class and throughout reading material 2. Report is written with grammatically correct sentences and paragraphs 3. Report is free from any and all spelling errors 4. Student paid attention to sentence structure. 3 3 1 Worth 80% of total assignment grade 5 3 PROJECT CONTENT: Student followed assignment instructions and guidelines provided a complete/ comprehensive financial plan. 1. Student adequately introduced selected scenario that is supported by the plan 2. Student considered the TVM 3. Student considered tax implications 4. Student considered a comprehensive, realistic list of expenses S. Student considered multiple sources of income 6 Cashflows were projected for 1 year and 5 years 7. Net worth was projected for 1 year and years out B. Student included dilemmas and solutions for dilemmas. 9. Student provided adequate documentation to support all decisions in the plane Salary, rent, food, insurance, etc.) 10. Student considered various investing options and selected at least one, with explanation of choice including how it fits into plan. 10 8 10 10 10 10 10