Personal financial Plan project content outlines
I.
Cover pages
Fill in, sign and include the following worksheets available on LEARN as cover pages.
·Declaration statement-Cover sheetworksheet
·Cover statement –provide a summary of the overall project, and what you have learned about the course.Please tie the various parts of the project together by either:
1) Writing one cover statement about what you have learned and how you have discovered what you can and can’t do in your financial future.
OR
2) Writing a brief paragraph for each section discussing how the section relates to the other sections of the project.E.g. to have enough retirement income, I will not be able to have as much of a house as I originally thought I would have because I need to save more money toward retirement instead of paying the higher mortgage.
Be specific for YOUR personal financial situation.Instead of just listing topics, note what you have learned for your specific situation.
·Choose at least one thing that you will do differently as a result of this course.Calculate the financial benefits (or costs) over a lifetime.E.g. you are going to drink one less coffee per week.What financial benefit over a lifetime will this have?
II.
Main sections
Section 1: Goals
Provide a brief explanation about your goals in a maximum of two pages and include the following worksheets under this section.These goals should be SMART (Specific, Measureable, Attainable, Relevant, Time-based).
·Personalinformationworksheet
·Financialobjectivesworksheet
·Goal setting worksheet– identify your Career goals, educational and life-long learning goals, personal growth and health goals, relationship and community goals and material and financial goals.Section 10 will specifically focus on your non-financial goals.
·Identify yourtop 12 Goals– provide a one or two paragraph brief explanation why these are your top 12 goals. Use thetable on page 11 of the Goal settingworksheet.
·Discuss you currenttop 3 goals in a maximum of 1 page.
·Identify your personal financial goals – usefinancial goals part 1 and 2worksheets.
·Discuss how you will present yourself to the job market – usethe Job search worksheet. Assume you are graduated, and try to describe how you identify the job you want and how you present yourself for an interview.
Section 2: Financial statements and budget
In this section include your balance sheet, income statement, budget tracker and financial ratios for stages of your life - NOW, at 40 and 60 years of age – use thefinancial statements and budgetworksheet. The statements for 40 and 60 years of age should be based on your own estimation, which depends on the job and assets you will have by that time. Try to take into account the effect of inflation as well. Be sure you are realistic in your estimations.
Section 3: Taxes, Banking services and credit cards
·Section description/summary
·Fill-in and includeIR3 tax returnform– if it is not applicable to you just write a paragraph explaining your situation.
·Include theBanking services comparisonandcredit card comparisonworksheets
·Include a paragraph explaining why you choose a particular bank and credit card based on the comparison templates provided.
Section 4: Personal loan analysis
·Introduction/summary about the section
·IncludeStudent loan analysis,Personalloan comparisonandcreditscoreworksheets under this section and provide a one or two paragraph brief description on each worksheets – conclusion from your analysis.
Section 5: Consumption: Comparing your Wants versus Needs
·Introduction/summary about the section
·Categorize your wants and needs in purchase – usecategorizing your wants vs needs in purchaseworksheet.
·What is the car youcan afford?- use theDetermining the car you can affordworksheet.
·How do you get the car you want –lease or purchase? – useLease vs purchase carworksheet.
·Do you buy or rent a house? To choose which alternative is better for you – use theRent vs Buy housingworksheet.
·What Mortgage can you afford for buying a house? – usewhat mortgage you can affordworksheet.
·Provide a one paragraph brief description on your consumption choices and adjustments you will make due to completing this project.
Section 6: Insurance
·Introduction/summary about the section
·Discuss about the insurance policies you want to have.
·In this section fill in and include thepersonal insurance truckerworksheet,property inventoryworksheet,property insurance,life insurance needsandIncome replacement/ disability insurance needworksheets.
·Provide a one paragraph brief description on each insurance choices.
Section 7: Wealth building- Investment
·Introduction/summary about the section
·Discuss about your investment goals
·In this section include the following worksheets
–Risk tolerance assessment– include your risk tolerance assessment results
–Asset allocation–the composition of different investment securities you want to invest in – NOW, 15 years and 30 years later.
–You may invest in a mutual fund for flexibility and diversification purposes.Use theMutual fund checklistworksheet.
–Assume you will have a rental property, and determine the annual rental yield or return you might earn. Use theInvestment property yieldworksheet. In one or two paragraphs describe the type, size and conditions of the property you rent.
Section 8: Retirement planning
·Introduction/summary about the section
·Fill in and include thesteps to determine retirement needsworksheet to discuss your overall retirement plans.
·Answer the four questions on theKiwisaver evaluation worksheetto assess whether kiwisaver is the right saving for your goals. If you are not on kiwisaver, identify other saving plans you might have if possible or explain your situation.
·To determine the total money you need for retirement and the annual savings you should deposit to meet your retirement needs, use theRetirement Needs worksheet.
·Compare two retirement villages and choose one you want to live in during retirement age –use theRetirement Village Comparisonworksheet.
·Because you will have done careful financial planning, you will not be eligible for a government subsidy, but you may have a parent or grandparent you will need to assist.Use theAsset and income test for care subsidyworksheet to find out if they are eligible for a subsidy.
Section 9: End of life events:Estate and Death
·Explain this section based on the End of life to do list worksheet.
·Estate planning – discuss how your property will be administered after your death.
·IncludeWillworksheet to describe how your assets are distributed and administered after your death and appointment of a guardian for minor children if any.
·You appoint someone to take care of your property and belongingness by providing a power of attorney – fill in and sign thepower of attorney personal care,power of attorney propertyandpower of attorney witnessworksheets.
·Fill in and include theinformation to collect for end of lifeworksheet to provide details about your personal life.
·List the details of your beneficiaries – children, partner, parents etc. Fill in and include theBeneficiary contact informationworksheet.
·Your Funeral plan – Use thefuneral wishesworksheet.
·Estimate the cost of your funeral – Use thecost estimates for funeralworksheet.
·Include obituary statement – what you would like to have said about you at the end of your life, on a Newspaper and during your funeral services. Use theObituaryworksheet.
Section 10:Other Goals
·List and explain any non-financial goals you have.(This may just mean a copy and paste from your goals section.)
·Provide a plan for how you will attain these goals.
·Provide any financial plans for meeting these goals.
III.
Conclusions
·A brief summary of the overall project in a maximum of one page.
IV.
Appendixes
·Include other attachments not included in sections 1-9, if any.
Remarks:
·Marking is based on the marking template available on LEARN – check Project instructions and marking template.
·Quality of the writing/contents matter – there is no limit on the overall project’s number of pages.
·If any of the worksheets or tasks are not applicable to you provide a one or two sentence explanation.