Fed Financial
Help Help Help!! I need help making a financial plan for an investment class. I need detailed help on starting
The assignment is for me to create my own financial plan. I need to create goals over the next 5, 10, 25years, and retirement. I need to put together a flexible financial plan that will address my goals for the four benchmarks (5, 10,12,retire). I can submit this plan using real numbers for my investments and goals. I need to consider my current and future income and expenses. I can use made up numbers for both your investments and your financial goals so that I don't reveal my actual current and future financial obligations. I really appreciate someone's detailed help my AIM is "DeronNeverFails" and my email is Timeliest_Physician@yahoo.com Thank You Correction in the last parentheses that is supposed to be 5, 10, 25 and retirement*
Public Comments
- What you're being asked to create is a retirement plan, not a financial plan (I know, I am a Financial Planner). A true financial plan would involve alternate scenarios such as disability, nursing home and survivor (for couples or those with dependants) events. Your first step is to establish your goals and translate those into numbers, such as; I want to own a $300,000 house within five years and have the required 5% down-payment. To be valid, each goal should be specific regarding time horizon and dollars. Start by answering to yourself some questions, such as; When will I graduate? What profession will I enter? Where do I want to live? What are starting salaries in that region? What will my income growth look like? What student loans or other debts must be paid? Will I have a family and children? How much will my children's education cost when they enter school? Essentially you want to be true to yourself regarding what you want out of life and true to reality about what you're willing to do to accomplish that. If you want your children to attend Harvard and you are willing to save $50 per month, starting when they are 16, those aren't goals, those are hallucinations. Then you must perform some time-value-of-money calculations. Don't be unrealistic with return on investment assumptions. If you're a moderately aggressive investor (which might be an appropriate assumption given that you're still in school but MIGHT NOT match your emotional comfort zone - be honest with yourself), don't assume returns higher than 9% per year, less if you're more conservative. The results will tell you how much you will need to save to accomplish your goals. Good Luck!
