Question

Design a sample financial plan based on retirement plan, risk preferences, current wealth and future wealth requirements.

The financial plan should be created in word and excel

Answer 1

1. Sample Financial plan based on retirement plan has given below. please find out the attachment.

2)Sample for Financial plan based on risk preferences has given below. find the attachment

3)Sample financial plan based on current wealth and future wealth requirements as follows

*Assets Assessment

Allan is employed, and Joyce is self-employed. While Allan, a real estate investor, makes $115,000 a year, Joyce, an online entrepreneur, makes around $30,000.

Assets that they own as at now include:

Bank accounts, Cash & Cash, CDs and Money Market – $250,000

Bonds and Stocks in a brokerage account– $615,000 which is the current value, $300,000 basis

Allan’s 401(k) savings ($720,000), and his employer match is 6%

Joyce’s SEP IRA -$600,000

Allan has a car whose worth is around $150,000. The vehicle has an outstanding loan balance of $40.000. He has been with the car for the last two years six months.

The couple lives in a home that is worth $650,000. They have taken out a $150,000 mortgage, which is at a 6.5% interest rate.

*Insurance Coverage

Allan and Joyce have taken life assurance coverage.

Allan has a life insurance cover of $400,000 through work and contributes at least a premium of $250 a month.

Joyce, on the other hand, contributes to her whole life policy of $85,000 benefit on death, $30,000 cash value and $20,000 is on a basis at a $150 premium per month

*Retirement Expenses

If Allan retires at 45 years, he’s entitled to get a pension that caters to at least 40% of his highest average salary ($140,000) for the rest of his life.

Retirement Annuity ($350,000 current value, $230,000 basis)

Allan maxes out his 401(k) account annually.

Joyce, on the other hand, is self-employed and has no retirement plan.

*Joint Expenses

Both Allan and Joyce spend approximately $11,000 per month on necessities and living expenses such as entertainment, utilities, basic items like property tax, food, and other costs.

Allan’s Social Security funds will be $8,050 per month at age 60. He plans to file for his social security benefits at retirement or when eligible to receive them.

Allan and Joyce do not have a will and plans to remain childless throughout their life.