personal financial planning

Personal Financial Planning Financial Plan Project

Due on Wednesday, November 29 at 10:30 am.

Your financial plan must include an essay and the following completed worksheets:

 Excel Worksheet 4.2 PFP Federal Income Tax Estimator 2015

 Excel Worksheet 1.3 PFP Prioritizing Goals (realistic goals based on your financial situation)

 Excel Worksheet 3.1 PFP Household Budget (It might be easier to create a monthly budget first and

then make it annual. Your net personal cash flow must be zero or positive).

 Excel Worksheet 10.2 PFP Retirement Planning Worksheet

Instructions for the Essay

Your financial plan must reflect your current family situation. Assume that your annual salary is $35,000

starting in January 2018. Your employer does not provide benefits such as health insurance, disability

insurance, retirement, etc.

Your essay must be a narrative that includes the answers to the following questions:

 What is your current family situation? (Married, married with children, single, single with

dependents, etc.)

 What is your monthly gross income (before taxes, assuming $35,000 annually)?

 What is your monthly net income (after federal income taxes and FICA taxes)?

 What is your filing status for federal income taxes?

 Briefly explain your budget. It must be realistic based on your current situation.

 Life insurance: Do you have financial dependents? If you do, how much life insurance do you need?

What type of insurance will you buy? Why? This expense must be included in your budget.

 Auto insurance: Do you have a car? Explain the coverage that you have. Do you need to make

changes?

 Home insurance: Do you have renter’s or homeowner’s insurance? Explain the current coverage

that you have.

 Retirement: Assume that you will retire at age 67 and you need $1,000,000 for retirement. How

much must you save every month in order to reach your goal if you do not have any retirement

savings? Assume a 3% inflation rate and 8% investment return. Calculate amounts for both interest

income alone and interest income and principal. How does your budget need to be rearranged so

that you can meet this goal?

Proof read your work. Grammatical errors and typos will reduce your grade by up to 10 points. If

necessary, make an appointment with the tutors at the writing center so that they can assist you.