Personal Financial Plan
Personal Financial Plan Part 5
Sheri Mulder
Personal Finance
Age 30
Establish good credit and avoid excessive debt
Invest aggressively for retirement
Buy a first home and build equity
Make a will and health directives
Age 30-45
Create an estate plan.
Buy adequate life and disability insurance.
Keep investing as much as possible.
Save for children 's college.
Age 45-65
Leverage peak earning years to build financial security.
Shift retirement savings as necessary.
Review estate plans regularly as assets grow and to reflect changing life circumstances.
Age 65 and beyond
Appropriately rebalance assets to manage risk.
Take action to minimize estate taxes and facilitate wealth transfer to descendants.
Make sure health insurance is adequate.
What was used to help establish the personal financial plan was a website that had an example of a financial plan considering life-stage changes. The example was helpful because it showed different ages of an individual 's life and what should be done during those stages. The example was helpful to use because the example is very similar to the situation and life style changes that are becoming an issue. The financial resources that would be used to help make financial decisions would be to get a loan from the bank for a mortgage. Taking out a bank loan would only be used if there was a large amount of money needed and there was not enough saved up to use. It is important to have a nest egg to fall back on in case of emergencies so an individual does not have to use financial resources to get him or her out an emergency situation.
Short-Term Goals
Finishing college
Increasing savings account
Purchasing a new vehicle
Reducing high interest debt
Buy life insurance
Make plans for retirement
Intermediate-Term Goals
Paying off expensive debt
Creating an emergency fund to cover 12 months of expenses
Buying a new car
Taking special vacation
Sheri Mulder
Personal Finance
Age 30
Establish good credit and avoid excessive debt
Invest aggressively for retirement
Buy a first home and build equity
Make a will and health directives
Age 30-45
Create an estate plan.
Buy adequate life and disability insurance.
Keep investing as much as possible.
Save for children 's college.
Age 45-65
Leverage peak earning years to build financial security.
Shift retirement savings as necessary.
Review estate plans regularly as assets grow and to reflect changing life circumstances.
Age 65 and beyond
Appropriately rebalance assets to manage risk.
Take action to minimize estate taxes and facilitate wealth transfer to descendants.
Make sure health insurance is adequate.
What was used to help establish the personal financial plan was a website that had an example of a financial plan considering life-stage changes. The example was helpful because it showed different ages of an individual 's life and what should be done during those stages. The example was helpful to use because the example is very similar to the situation and life style changes that are becoming an issue. The financial resources that would be used to help make financial decisions would be to get a loan from the bank for a mortgage. Taking out a bank loan would only be used if there was a large amount of money needed and there was not enough saved up to use. It is important to have a nest egg to fall back on in case of emergencies so an individual does not have to use financial resources to get him or her out an emergency situation.
Short-Term Goals
Finishing college
Increasing savings account
Purchasing a new vehicle
Reducing high interest debt
Buy life insurance
Make plans for retirement
Intermediate-Term Goals
Paying off expensive debt
Creating an emergency fund to cover 12 months of expenses
Buying a new car
Taking special vacation
Cited: https://ww3.janus.com/Janus/Retail/StaticPage?jsp=jsp/Common/JanusReportHTML.jsp&assetname=JanusReportThroughYears ----------------------- | |