Perfect Solution: Financial Planning Assignment 1 2 3 4
Adams Nigel (Not rated)
(Not rated)
FINANCIAL PLANNING ASSIGNMENT INSTRUCTIONS
Financial Planning Assignment 1
- Calculate what the $3,000-per-year deficit, had it been invested, would have amounted to at the end of the 15-year period.
- Explain to Richard what compounding is and how it affected the cumulative amount received in question 1.
- Calculate the return on the proposed $20,000 investment and indicate the factors entering into your recommendation to accept or reject it.
- Indicate the expected return on the annuity and whether it should be accepted or rejected.
- Construct an explanation of the time value of money for the financial plan using your answers to questions 1 through 4 in this part of the financial plan to help you communicate the time value information to Richard and Monica.
Financial Planning Assignment 2
NONFINANCIAL ASSETS- CAPITAL EXPENDITURES
- Do we know yet whether Monica's fears about retirement are justified? Do you have any preliminary opinion about this?
- Do you think she should consider a new boiler now?
- Complete the boiler problem and give your response.
- Calculate the projected return on the house for the next year and give your full recommendation.
- Finish the non financial investments section of the plan.
- What do you think of the Richard and Monica argument?
- Using the asset allocation alternatives listed in this chapter as a guide, what should their asset allocation be? Why?
- What do you think of the Energy Gulch idea? Why?
- Select one mutual fund you find attractive and give the reasons why you chose it.
- Complete the investments section of the financial plan.
Financial Planning Assignment 3
- What do you think of Monica's idea of taking control of retirement investing?
- What is your opinion of Richard's contention that saving outside the pension was best?
- What are their alternatives in covering the shortfall in annual retirement savings?
- What are you recommendations?
- How do you feel about their beliefs?
- Describe the disadvantages of their approach.
- Suppose they wanted to have $1 million accumulated in 40 years. Indicate how much money would have to be saved each year if they started now. Assume that the money would be accumulated in personal accounts and earn 6 percent a year after taxes.
Financial Planning Assignment 4
- How much will the short fall amount to at the beginning of the retirement period?
- What lump sum will she need at the beginning of the retirement period?
- What is the required yearly savings?
- How much in new savings will Frank have available at age 65 before subsequent withdrawals?
- How much will he have left at age 90?
- What is the present value of that sum at age 65?
- How much will he have to save per year to exactly meet his need?
a. The lump sum needed at retirement.
b. Current assets available at retirement.
d. The difference between needs and resources.
a. Is their retirement plan achievable as is?
b) If not, what are the alternatives that could help reconcile needs and resources?
c) What is your recommendation?
- 9 years ago
Perfect Solution 100% Correct
NOT RATED
Purchase the answer to view it
- financial_planning_assignment_4.xlsx
- financial_planning_assignment_2_case.docx
- financial_planning_assignment_3.docx
- financial_planning_assignment_1.docx
- financial_planning_assignment_2.xlsx