Personal Financial Planning - 4532 Words

Personal Financial Planning Executive Summary Further to our recent discussions, the following is a detailed analysis of your current financial position and recommended action plan for achieving your stated financial goals. Key findings are summarized below and detailed supporting financials are provided in Appendices I thru VI. As at March 31, 2011, your total net worth/equity is estimated at $22,090. In reviewing the details of your assets and liabilities, with all other personal assets fully leveraged, this net worth is comprised primarily of the value of your household contents. While these household items are valued at a replacement cost of $25,000 on the family balance sheet, these items could not be sold for this amount to†¦show more content†¦Other assumptions include: o The TDS ratio prior to the second mortgage well exceeded the 40% threshold, which is why RBC or similar large banks would not extend any further credit to the Chang family o Combined balances owing on the credit cards and line of credit (e.g. Other Debts) were an estimated $55,000; this included the amount for the renovations of $10,000; the balance was reduced to $20,000 in February 2011 with the funds received from the second mortgage o Cash Outflows for payments for Other Debt were an estimated $850 each month prior to securing the second mortgage (i.e, April/10 to February/11) o Chang family funded the cash shortfall each month by using credit cards and their line of credit Assets †¢ Cash and Investments - current balances in TD chequing account and mutual fund investments of $1,000 respectively o Given their current financial situation, this family would have only a minimum amount of liquid assets; if they had anything substantial they would have used it to pay down a portion of their outstanding debt †¢ RRSP, RESP, Company Pension Plan – nil o As noted above, given the family’s current financial position, they have not had the cash flow for any investment for retirement or children’s education fund †¢ Car – asset of $12,000 o Reflects current market value for a 2007 Honda Accord purchased 2Show MoreRelatedPersonal Financial Planning1579 Words   |  7 PagesADM 3445 (FR01B) Personal Financial Planning Course Outline Instructor: E. Otuteye Term: Winter 2012 Office: SH 362 Day(s): W Phone: 506 458-7354 Time: 7:00-9:50pm Email: otuteye@unb.ca Classroom: SH 161 Office hours: Th, F 2:00 – 3:00; by appointment; also, usually available immediately after class. COURSE OBJECTIVE AND DESCRIPTION: The objective of this course is to introduce students to 1. the fundamental principles of financial decision-making; and Read MorePersonal Financial Planning : Retirement Planning Essay914 Words   |  4 PagesPersonal Financial Planning - Retirement Planning By Aaron Lau | Submitted On February 19, 2010 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Advances in medical science have resulted in people living longer. ThisRead MoreWhat Is Personal Financial Planning?946 Words   |  4 PagesWhat is Personal financial planning? Personal financial planning is the process of managing your money to achieve personal economic satisfaction (McGraw-Hill, 2010). Did you know that financial decisions affect people and their living situations due to age, their income, health and household size (McGraw-Hill, 2010)? Well, that is why financial planning plays a major part in society today. When trying to obtain a balanced lifestyle you have to follow the Personal financial planning process: figureRead MorePersonal Finance Planning : The Financial Management999 Words   |  4 PagesPersonal Finance Planning Introduction Personal Finance is the financial management which an person or a family unit performs to spending plan, spare, and invest fiscal assets over time, considering different monetary risks and future life events (Salohalla, 2011). Like many people, you have seeks and dreams and life objectives after yourself and your crew. These might incorporate purchasing a home or business, putting something aside for school instruction for your youngsters, taking a fantasyRead MorePersonal Financial Planning Assignment 16789 Words   |  28 Pages Daniel age 51 Three kids – Patty (6), Kobe (9) and Gordon (12). They have come to you for advice on how to manage their risk. They have provided you with the following information about their family. Maria and Daniel both work in the financial services industry, which is how they initially met. Daniel was working as a Sales Representative for a mutual fund company and Maria was his Inside Sales Associate. They continue to work for the same firm; however, Daniel is now VP of sales earningRead MorePersonal Financial Goals And Objectives Essay1044 Words   |  5 PagesFinancial Plan is a written financial goal with define action plans that will help you to achieve such goals. Planning is important to set deliberate actions that will guide you in reaching your goals. It is even necessary when you are further from the set goal. When it comes to money, most individuals would love to manage their personal finances so that they achieve maximum satisfaction from each available currency. To achieve this goal, you must first identify the financial goals and set prioritiesRead MoreLocker Room Talk969 Words   |  4 Pagesan ethical dilemma for CPA Albert Gable who has performed personal financial planning for Larry and Susan Wilson. The Wilson’s, in their discussions with Mr. Gable regarding their personal finances, mentioned that in the past they have had marriage problems but have worked through the problems and are not seeking a divorce. Gable and the Wilson’s became personal friends due to the relationship built during their personal financial planning. Mr. Gable also performs the annual audit for one of theRead MoreFp101 Week 1 Dq Answers1559 Words   |  7 PagesOne DQ 1   Post a 150- to 300-word response to the following discussion question by clicking on Reply:   Refer to Figure 1-1 of Personal Finance. List the five steps in the personal financial planning process. Share one or two questions you may ask yourself when you are in Step 1.   According to Figure 1-1 of Personal Finance, the five steps in the personal financial planning process are: Step 1 – Analyze your current finances, Step 2 – Develop goals, Step 3 – Identify and evaluate strategiesRead MoreWeek 1 Personal Finance Plan Worksheet998 Words   |  4 PagesPhoenix Material Personal Financial Planning Worksheet Directions Based on your readings and discussions in class this week, answer the following multiple choice questions. 1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called b. personal financial planning. 2. Which of the following is not one of the five major steps of the financial planning process? c. collect and organize your financial information 3Read MorePersonal Finance : Using Accounting Principles Of Paying For Or Financing A Life And A Way Of Living808 Words   |  4 Pagesknow that â€Å"personal finance is the process of paying for or financing a life and a way of living.† That said, we also know that using accounting principles to manage our personal finances will likely yield great success in one’s tracking and planning, financially, in the long run. Understanding the sources (incomes) and uses (expenses) of funds, and the budget deficit/surplus that results, are core accounting measures to consider in short and long term personal financial planning. Also, grasping