Academic Honesty Policy
Individual Assignment Cover Page
Submitted to: Jim Keys
Submitted by:
Your Phone
Number:
Your e-mail:
Date of
April 27, 2011
Submission:
Title of
Personal Financial Plan
Assignment:
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any
assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also
cited any sources from which I used data, ideas or words; either quoted directly or paraphrased I
also certify that this paper was prepared by me specifically for this course.
Signature
(Insert your initials in the shaded cell to the right to
electronically sign this form)
W1 PERSONAL FINANCIAL GOALS WORKSHEET
Make sure your goals are realistic and stated in specific, measurable terms. In addition, prioritize your goals and identify a specific
time frame within which you would like to accomplish them. The listing below is not meant to be all-inclusive, but merely to provide
a framework within which goals can be formalized.
Short-Term Goals (less than 1 year)
PRIORITY DESIRED
LEVEL (1, ACHIEVEMENT ANTICIPATED
GOAL 2, 3, ...) DATE COST
Accumulate emergency funds equal to
3 months' living expenses
Pay off outstanding bills
Pay off outstanding credit cards
Purchase adequate property, health,
disability, and liability insurance
Purchase a major item
Finance a vacation or some other
entertainment item
Other short-term goals (specify)
Intermediate-Term Goals (1 to 10 years)
Save funds for college for an older child
Save for a major home improvement
Save for a down payment on a house
Pay off outstanding major debt
Finance very large items (weddings
Purchase a vacation home or
time-share unit
Finance a major vacation (overseas)
Other intermediate-term goals (specify)
Long-Term Goals (greater than 10 years)
Save funds for college for a young child
Purchase a second home for retirement
Create a retirement fund large enough
to supplement your pension so that
you can live at your current standard
Take care of your parents after they retire
Start your own business
Other long-term goals (specify)
W2 FINANCIAL OBJECTIVES WORKSHEET
The generic objectives provided are typical for people of all ages and are geared to assist you with your goal
setting. Please rank the objectives on the following scale.
0 – Not applicable at this time 3 – Important
1 – Not important 4 – Very important
2 – Somewhat important 5 – Crucial
Financial/Personal Objectives 0 1 2 3 4 5
Insert an "x" in each line to indicate your ranking of each objective.
Becoming more financially knowledgeable
Improving record keeping methods
Finding a life partner
Starting a family
Acquiring additional home furnishings
Reducing revolving debt
Increasing savings
Reducing taxes
Paying off student loans
Evaluating insurance needs
Increasing insurance protection
Advancing in current career
Changing careers
Increasing investment diversification
Increasing investment return
Starting a small business
Planning for children’s education costs
Saving to return to college
Purchasing a vehicle
Saving for the down payment on a home
Purchasing a home
Caring for parents
Investing an inheritance
Saving for retirement
Retiring early
Traveling extensively in retirement
Giving to charity
Transferring estate assets
Other:
W3 JOB SEARCH WORKSHEET
Notes
The Search
(Complete items 1 to 3 on this checklist before starting your job search.)
1. Identify Occupations
ŸMake a background and experience list.
ŸReview information on jobs.
ŸIdentify jobs that use your talents.
2. Identify Employers
ŸAsk relatives and friends to help you look for job openings.
ŸGo to your State Employment Service Office for assistance.
ŸContact employers to get company and job information.
3. Prepare Materials
ŸWrite résumés (if needed). Use job announcements to “fit”
skills with job requirements.
ŸWrite cover letters or letters of application.
The Daily Effort
4. Contact Employers
ŸCall employers directly (even if they’re not advertising openings).
Talk to the person who would supervise you if you were hired.
Make note of names.
ŸGo to companies to fill out applications.
ŸContact your friends and relatives to see if they know about any openings.
The Interview
(Complete items 5 to 8 when you have interviews.)
5. Prepare for Interviews
ŸLearn about the company you’re interviewing with.
ŸReview job announcements to determine how your skills will help you do the job.
ŸAssemble résumés, application forms, etc. (make sure everything is neat).
6. Go to Interviews
ŸDress right for the interview.
ŸGo alone.
ŸBe neat, concise, and positive.
ŸThank the interviewer.
7. Evaluate Interviews
ŸSend a thank-you note to the interviewer within 24 hours of the interview.
ŸThink about how you could improve the interview.
8. Take Tests
ŸFind out about the test(s) you’re taking.
ŸBrush up on job skills.
ŸRelax and be confident.
9. Accept the Job!
ŸGet an understanding of job duties and expectations, work hours, salary,
benefits, and so on.
ŸBe flexible when discussing salary (but don’t sell yourself short).
ŸCongratulations!
W4 BALANCE SHEET - CALCULATING YOUR NET WORTH
Assets Value
Cash
Checking +
Savings/CDs +
Money Market Funds +
Other Monetary Assets +
A. Monetary Assets A. = $0
Mutual Funds
Stocks +
Bonds +
Life Insurance (cash-value) +
Cash Value of Annuities +
Investment Real Estate (REITs, partnerships) +
Other investments +
B. Investments B. = $0
401(k) and 403(b)
Company Pension +
Keogh +
IRA +
Other Retirement Plans +
C. Retirement Plans C. = $0
Primary Residence
2nd Home +
Time-Shares/Condominiums +
Other Housing +
D. Housing (market value) D. = $0
Automobile 1
Automobile 2 +
Other Automobiles +
E. Automobiles E. = $0
Collectibles
Boats +
Furniture +
Other Personal Property +
F. Personal Property F. = $0
Money Owed You
Market Value of Your Business +
Other +
G. Other Assets G. = $0
H. Total Assets (add lines A through G) H. = $0
Liabilities or Debts Value
I. Current Bills (unpaid balance) I. =
Visa
Master Card +
Other Credit Cards +
J. Credit Card Debt J. = $0
First Mortgage
2nd Home Mortgage +
Home Equity Loan +
Other Housing Debt +
K. Housing K. = $0
Automobile 1
Automobile 2 +
Other Automobile Loans +
L. Automobile Loans L. = $0
College Loans
Loans on Life Insurance Policies +
Bank Loans +
Installment Loans +
Other +
M. Other Debts M. = $0
N. Total Debt (add lines I through M) N. = $0
Net Worth
H. Total Assets H. + $0
N. Less: Total Debt N. - $0
O. Equals: Net Worth O. = $0
W5 SIMPLIFIED INCOME STATEMENT WORKSHEET
Your Take-Home Pay
A. Total Income A.
B. Total Income Taxes - B.
After-Tax Income Available for Living Expenditures
C. or Take-Home Pay (line A minus line B) = C.
Your Living Expenses
D. Total Housing Expenditures
E. Total Food Expenditures + E.
Total Clothing and
F. Personal Care Expenditures + F.
G. Total Transportation Expenditures + G.
H. Total Recreation Expenditures + H.
I. Total Medical Expenditures + I.
J. Total Insurance Expenditures + J.
K. Total Other Expenditures + K.
Total Living Expenditures
L. (add lines D through K) = L.
Income Available for Savings and Investment
M. (line C minus line L) = M.
W6 STORING FINANCIAL FILES
Long-Term or Permanent Storage
(keep at home in a file cabinet or safe spot)
Tax Records (may be discarded after 6 years) Location
Tax returns
Paychecks
W-2 forms
1099 forms
Charitable contributions
Alimony payments
Medical bills
Property taxes
Any other documentation
Investment Records
Bank records and nontax-related checks
less than a year old
Safety deposit box information
Stock, bond, and mutual fund transactions
Brokerage statements
Dividend records
Any additional investment documentation
Retirement and Estate Planning
Copy of will
Pension plan documentation
IRA documentation
Keogh plan transactions
Social Security information
Any additional retirement documentation
Personal Planning
Personal balance sheet
Personal income statement
Personal budget
Insurance policies and documentation
Warranties
Receipts for major purchases
Credit card information
(account numbers and telephone numbers)
Birth certificates
Rental agreement, if renting a dwelling
Automobile registration
Powers of attorney
Any additional personal planning documentation
Safety Deposit Box Storage
Investment Records
Certificates of deposit
Listing of bank accounts
Stock and bond certificates
Collectibles
Retirement and Estate Planning
Copy of will
Nondeductible IRA records
Personal Planning
Copy of will
Deed for home
Mortgage
Insurance policies and documentation
Title insurance policy
Receipts for major purchases
Personal papers (birth and death certificates, alimony,
adoption/custody, divorce, military, immigration, etc.)
Documentation of valuables (videotape or photos)
Home repair/improvement receipts
Auto title
Listing of insurance policies
Credit card information
(account numbers and telephone numbers)
Throw Out
Nontax-related checks over a year old
Records from cars and boats you no longer own
Expired insurance policies on which
there will be no future claims
Expired warranties
Nontax-related credit card slips over a year old
BUDGET TRACKER:
W7 PERSONAL INCOME STATEMENT WORKSHEET
Directions: Fill in the green cells with your data. Be careful not to modify the red cells.
Month
Budget Actual
Income Income Difference
Income
Wages and salaries
Wage Earner 1 0
Wage Earner 2 0
=Total Wages and salaries 0 0 0
+ Interest and Dividends 0
+ Royalties, Commissions and Rents 0
+Other Income 0
=A. Total Income 0 0 0
Taxes
Federal Income and Social Security 0
+State Income 0
=B. Total Income Taxes 0 0 0
C. After-Tax Income Available for Living Expenditures 0 0 0
or Take-Home Pay (line A minus line B)
Budget Actual
Amount Spending Difference
Housing
Rent 0
+Mortgage Payments 0
+Utilities 0
+Maintenance 0
+Real Estate and Property Taxes 0
+Fixed Assets-furniture, appliances, televisions, etc. 0
+Other Living Expenses 0
=D. Total Housing Expenditures 0 0 0
Food
Food and Supplies 0
+Restaurant Expenses 0
=E. Total Food Expenditures 0 0 0
Clothing and Personal Care
New Clothes 0
+Cleaning 0
+Tailoring 0
+Personal Care-hair Care 0
+Other Clothing and Personal Care Expenses 0
=F. Total Clothing and Personal Care Expenditures 0 0 0
Transportation
Automobile Purchase 0
+Payments 0
+Gas, Tolls, Parking 0
+Automobile Registration/Tags/Stickers 0
+Repairs 0
+Other Transportation Expenses 0
=G. Total Transportation Expenditures 0 0 0
Recreation
Movies, Theater, Sporting Events 0
+Club Memberships 0
+Vacations 0
+Hobbies 0
+Sporting Goods 0
+Gifts 0
+Reading Materials (books, newspapers, magazines) 0
+Other Recreation Expenses 0
=H. Total Recreation Expenditures 0 0 0
Medical Expenditures
Doctor 0
+ Dental 0
+Prescription Drugs and Medicines 0
=I. Total Medical Expenditures 0 0 0
Insurance Expenditures
Health 0
+Life 0
+Automobile 0
+Disability 0
+Liability 0
+Other Insurance Expenses 0
=J. Total Insurance Expenditures 0 0 0
Other Expenditures
Educational Expenditures (college loan payment) 0
+Child Care 0
+ Other Expenses 0
=K. Total Other Expenditures 0 0 0
L. Total Living Expenditures (add lines D-K) 0 0 0
M. Income Available for Savings and Investment 0 0 0
W8 WORKSHEET FOR BALANCING YOUR CHECKING ACCOUNT
1. Record in your check register all items that appear on the monthly statement received
from the bank that have not previously been entered, for example, cash withdrawals from an
ATM, automatic transfers, service charges, and any other transactions.
2. In your checking-account register, check off any deposits or credits and checks or debits shown
on the monthly statement.
3. In the Deposits and Credits section below (section A), list any deposits that have been made
since the date of the statement.
SECTION A: DEPOSITS AND CREDITS
DATE AMOUNT
1.
2.
3.
4.
5.
6.
Total Amount: $0.00
4. In the Outstanding Checks and Debits section below (section B), list any checks and debits
issued by you that have not yet been reported on your account statement.
SECTION B: OUTSTANDING CHECKS AND DEBITS
CHECK NUMBER AMOUNT
1.
2.
3.
4.
5.
6.
7.
Total Amount: $0.00
5. Write in the Ending Statement Balance provided in the
monthly statement that you received from your bank.
6. Write in the total amount of the Deposits and Credits you
have made since the statement date (total of section A
above). + $0.00
7. Total the amounts in lines 5 and 6. = $0.00
8. Write in the total amounts of outstanding Checks and
Debits (total of section B above). - $0.00
9. Subtract the amount in line 8 from the amount in line 7.
This is your Adjusted Statement Balance. = $0.00
If your Adjusted Statement Balance as calculated above does not agree with your Account Register
Balance:
A. Review last month’s statement to reconcilement to make sure any differences were corrected.
B. Check to make sure that all deposits, interest earned, and service charges shown on the
monthly statement from your bank are included in your account register.
C. Check your addition and subtraction in both your account register and in this month’s checking-
account balance reconcilement above.
W9 WORKSHEET FOR THE LEASE VERSUS PURCHASE DECISION
Cost of Purchasing
a. Agreed-upon purchase price
b. Down payment
c. Total loan payments (monthly loan payment x ___ no. months)
d. Opportunity cost of down payment
[line b x (1 + foregone rate of return (number of years))]
e. Less: Expected market value of the car ar the end of the loan
f. Total cost of purchasing $0
Cost of Leasing
g. Down payment (capitalized cost reduction) + security deposit
h. Total lease payments (monthly lease payment x ___ no. months)
i. Opportunity cost of total initial payment
[line g x (1 + foregone rate of return(number of years))]
j. Any end-of-lease charges (e.g., excess mileage), if applicable
k. Less: Refund of security deposit
l. Total cost of leasing $0
$0
W10 WORKSHEET FOR THE RENT VERSUS BUY DECISION
The Cost of Renting
1 year 7 years
a. Total monthly rent costs (monthly rent ____ x 12 months x no. years) a. a. $0
b. Total renter's insurance (annual renter's insurance ____ x no. years) + b. + b. $0
c. After-tax opportunity cost of interest lost because of having to make
a security deposit (security deposit of ____ x after-tax rate of return
of ____ x no. years) + c. + c. $0
d. Total cost of Renting (lines a + b + c) = d. $0 = d. $0
The Cost of Buying
e. Total mortgage payments (monthly payments ____ x 12 months x no. years) e. e. $0
f. Property taxes on th new house (property taxes of ____ x no. years + f. + f. $0
g. Homeowner's insurance (annual insurance premium ____ x no. years) + g. + g. $0
h. Additional operationg cost beyond those of renting: Maintenance,
repairs, and any additional utilities and heating costs (additional
annual operating costs ____ x no. years) + h. + h. $0
i. After-tax opportunity cost of interest lost because of having to make
a down payment (down payment of ____ x after-tax rate of
return of ____ x no. years) + i. + i. $0
j. Closing costs, including points (closing costs of ____) + j. + j. $0
k. Less savings: Total mortgage payments going toward the loan principal* - k. - k. $0
l. Less savings: Estimated appreciation in value of the home less sales
commission at the end of the period (current market value of house
____ x annual growth in house value of ____ x no. years - sales
commission at the end of the period of ____ x future value of house - l. - l. $0
m. Equals: Total cost of buying a home for those who do not itemize
(lines e + f + g + h + I + j - k - l) = m. $0 = m. $0
Additional savings to homebuyers who itemize
n. Less savings: Tax savings form the tax-deductibility of the interest portion of
the mortgage payments (total amount of interest payments
made x marginal tax rate ____) - n. - n.
o. Less savings: Tax savings from the tax-deductibility of the property taxes
on the new house [(property taxes of ____ x marginal tax rate
of ____) x no. years] - o. - o. $0
p. Less savings: Tax savings from the tax-deductibility of the points portion of the
closing costs (total points paid of ____ x marginal tax rate of ____) - p. - p. $0
q. Total cost of buying a home to homwbuyers who itemize
(line m minus lines n through p) = q. $0 = q. $0
Advantage of buying to thoes who do not itemize = Total cost of
renting - Total cost of buying for those who do not itemize:
if negative, rent; if positive buy (line d - line m) = $0 = $0
Advantage of buying to thoes who do itemize = Total cost of
renting - Total cost of buying for those who do itemize:
if negative, rent; if positive buy (line d - line q) = $0 = $0
WORKSHEET FOR CALCULATING THE MAXIMUM MONTHLY MORTGAGE
W11 PAYMENT AND MORTGAGE SIZE FOR WHICH YOU CAN QUALIFY
Method 1 Determine Your Maximum Monthly Mortgage Payment Using the
Ability to Pay, PITI Ratio.
a. Monthly income (annual income divided by 12)
b. Times 0.28: Percentage of PITI (Principal, interest, taxes, and insurance) to your
monthly gross income that lenders will lend in the form of a mortgage loan
(multiply line a by 0.28) x 0.28 = $0
c. Less: Estimated monthly real estate tax and insurance payments -
d. Equals: Your maximum monthly mortgage payment using the 28% of PITI ratio = $0
To Determine the Maximum Mortgage Loan Level Using the Maximum Monthly
Mortgage Payments as Determined Using the PITI Ratio (line d):
Step 1: Monthly mortgage payment for a $10,000 mortgage with a ____ year
maturity and a ____% interest rate (using Table 8.1) =
Step 2: Maximum mortgage level = maximum monthly mortgage payment (line d)
divided by the monthly mortgage payment on a $10,000, ____%, ____year
mortgage (step 1 above) times $10,000 = (line d/step 1) x $10,000 =
Method 2 Determine Your Maximum Monthly Mortgage Payment Using the
Ability to Pay, PITI Plus other Fixed Monthly Payments, Ratio.
e. Monthly income (annual income divided by 12)
f. Times 0.36: Percentage of PITI + current monthly fixed payments to your
monthly gross income that lenders will lend in the form of a mortgage loan
(multiply line a by 0.36) x 0.36 = $0
g. Less: Current nonmortgage debt payments on debt that will take over
10 months to pay off and other monthly legal obligations such as child support
and alimony payments -
h. Less: Estimated monthly real estate tax and insurance payments -
i. Equals: Your maximum monthly mortgage payment using the 36% of PITI + other fixed
Monthly payments ratio (line f - g - h) = $0
To Determine the Maximum Mortgage Loan Using the PITI Plus Other Fixed Monthly
Payments Ratio (line i):
Step 1: Monthly mortgage payment for a $10,000 mortgage with a ____ year
maturity and a ____% interest rate (using Table 8.1) =
Step 2: Maximum mortgage level = maximum monthly mortgage payment (line d)
divided by the monthly mortgage payment on a $10,000, ____%, ____year
mortgage (step 1 above) times $10,000 = (lined/step 1) x $10,000 =
Method 3 Determine Your Maximum Mortgage Level Using the "80% of the
Appraised Value of the House" Rule.
j. Funds available for the down payment and closing costs
k. Less: Closing costs -
l. Equals: Funds available for the down payment = $0
m. Times 4: Maximum mortgage level using the "80% of the appraised value of the
house" rule (the 20% down, line l, times 4 equals the 80% you can borrow) x4 = $0
Conclusion: Maximum Mortgage Level for Which You Will Qualify
(the lowest of the amounts using method 1, method 2, or method 3) =
W12 WORKSHEET FOR ESTIMATING LIFE INSURANCE NEEDS
Total Needs
Step 1: Immediate Needs -
Cleanup Funds
Final Illness Costs (assumed equal to your
health insurance deductible) a.
Estate Administration Costs (assumed equal to
4% of your assets) + b.
Burial Costs + c.
Federal Estate Taxes (if any due) + d.
State Estate Taxes + e.
Additional Legal Fees + f.
Other Immediate Needs + g.
Total Immediate Needs (add lines a
through g) = h. $0
Step 2: Debt Elimination Funds
Credit Card and Consumer/Installment Debt i.
Auto Debt Outstanding + j.
Desired Mortgage Reduction + k.
Other Debt to be Paid Off at Your Death + l.
Total Debt Elimination Funds (add lines I
through L) = m. $0
Step 3: Immediate Transitional Funds
Schooling Expenses for Surviving Spouse n.
Child Care and Housekeeping Expenses + o.
Other Transitional Needs + p.
Total Immediate Transitional Funds (add
lines n through p) = q. $0
Step 4: Dependency Expenses (family needs while children are in
school and dependent on family support)
Current Household Expenses (estimated as
income less savings) r.
Less: Deceased's Expenses (estimated as 30% of
line r if surviving family includes only one
member, 26% for a surviving family of two,
22% for a surviving family of three, and
dropping 2% more for each additional
family member) - s.
Less: Spousal Income - t.
Less: Social Security Survivors' Benefits - u.
Less: Pension Benefits and Income - v.
Equals: Income to be Replaced Until Children Are
Self-Supporting (line r - lines s through v) = w. $0
Total Dependency Expenses or Money in Today's
Dollars Needed for Dependency Expenses (assuming
the children have n years until they become self-
supporting and you can earn an i % after-tax and
after-inflation return on your investments) (line w x
PVIFA i%,n yr) = (line w x PVIFA __%, __yr) =
(line w x ____) = x.
Step 5: Spousal Life Income (spousal needs after children are self-
supporting)
Desired Spousal Income y.
Total Spousal Life Income or Money in Today's Dollars to
Provide for Desired Spousal Income (assuming n years
until the children become self-supporting and m years
until the spouse qualifies for Social Security or retirement
income, and assuming you can earn i% after-tax and
after-inflation return on your investments)
[line y x (PVIFA i%, m yr - PVIFA i%, n yr)] =
[line y x (PVIFA __%, __yr - PVIFA __%, __yr)] =
[line y x (_____ - _____)] = z.
Step 6: Educational Expenses for Your children
Total Educational Expenses (private school needs plus total
college needs) aa.
Step 7: Retirement Income
Additional Desired Annual Income at Retirement bb.
Total Retirement Income or Money in Today's Dollars to
Provide for Desired Retirement Income (assuming
retirement in m years and desiring the additional income
for p additional years, and assuming you can earn i%
after-tax and after-inflation return on your investments)
[line bb x (PVIFA i%, m yr - PVIFA i%, n yr)] =
[line bb x (PVIFA __%, __yr - PVIFA __%, __yr)] =
[line bb x (____ - ____)] = cc.
Step 8: Total Funds Needed in Today's Dollars to Cover Needs
Total (lines h + m + q + x + z + aa + cc) = dd. $0
Step 9: Assets and Insurance Available to Cover Needs
Cash from Current insurance Policies ee.
Retirement Savings and Investments ff.
Other Assets gg.
Total Assets (add lines ee + ff + gg) = hh. $0
Step 10: Additional Insurance Needs
Additional insurance Needs (line dd - line hh) = $0
W13 WORKSHEET FOR ESTIMATING DISABILITY INSURANCE NEEDS
Total existing coverage
1 Current monthly after-tax job-related income
2 Existing disability coverage on an after-tax-basis
Social Security benefits
Disability insurance from employer
Veterans' or other federal or state disability benefit
Other disability coverage in place
Additional coverage needed
3 Additional disability coverage needed to maintain current level of
after-tax job-related income in the event of a disability
ANCE NEEDS
$0
$0
W14 WAYS TO LOWER YOUR HOME INSURANCE COSTS
Shop around.
Raise your deductible.
Buy your home and auto policies from the same insurance company.
When you buy a home, buy a new one and choose the location wisely.
Insure your house, not the land.
Beef up your home security.
Stop smoking.
Ask about discounts for seniors.
See if you can get group coverage.
If you stay with the same insurance company—if you’ve kept your coverage
with a company for several years—you may receive a discount for long-
standing policyholders.
Source: U.S. Office of Consumer Affairs, Consumers Resource Handbook, 2000.
W15 INSURANCE TRACKER WORKSHEET
Life Insurance: Policy 1
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Life Insurance: Policy 2
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Life Insurance: Policy 3
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Health Insurance: Policy 1
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Health Insurance: Policy 2
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Disability Insurance: Policy 1
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Disability Insurance: Policy 2
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Long-Term Care Insurance Policy:
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Homeowner's or Renter's Insurance Policy:
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Auto Insurance Policy:
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
Other Insurance Policy:
Company: Policy Number:
Name of Contact: Phone Number:
If employer provided, Pretax Premium: Individual Policy Premium:
Current Coverage: Adequate: Yes ___ No ___
Proposed Coverage: Additional Premium:
W16 WORKSHEET FOR FUNDING YOUR RETIREMENT NEEDS
Your
Numbers
Step 1: Estimate Your Annual Needs at Retirement
A. Present level of your living expenditures on an after-tax basis
B. Times 0.80 equals: Base retirement expenditure level in today's dollars x 0.80 $0
C. Plus or minus: Anticipated change in living expenditures after retirement + or -
D. Annual living expenditures at retirement in today's dollars on an after-tax basis = $0
E. Before-tax adjustment factor, based on an average tax rate of ____% x
Use Table 16.2 in Text
F. Before-tax income necessary to cover the annual living expenses in line D = $0
Step 2: Estimate Your Income Available at Retirement
G. Income from Social Security I today's dollars
H. Plus: Projected pension benefits in today's dollars +
I. Plus: Other income in today's dollars +
J. Anticipated retirement income, in today's dollars [equals (lines G + H + I)] = $0
Step 3: Calculate the Annual Inflation-Adjusted Shortfall
K. Anticipated shortfall in today's dollars (line f minus line J) $0
L. Inflation adjustment factor, based on anticipated inflation rate of ____%
Years until retirement
FVIF: as found in Appendix A =
M. Equals: Inflation-adjusted shortfall (line K x line L)
Step 4: Calculate the Total Funds Needed at Retirement to Cover This Shortfall
Over the Number of Years You Expect to Be Retired
N. Expected annual return on your investment after retirement
Inflation adjusted return
Number of years after retirement
PVIFA: as found in Appendix D =
O. Funds needed at retirement to finance the shortfall =
Step 5: Determine How Much You Must Save Annually Between Now and Retirement
to Cover the Shortfall
P. Expected annual return on your investment before retirement
Years until retirement
FVIFA: as found in Appendix C =
V. Amount that must be saved =
W17 FEDERAL ESTATE TAX LIABILITY ESTIMATOR WORKSHEET
Step 1: Calculate the value of the gross estate. Amount Total Amount
Gross estate value
Step 2: Calculate your taxable estate.
Funeral expenses
Estate administration expenses
Outstanding debt
Income taxes
Marital Deduction
Charitable contributions
Total - $ -
Taxable estate value = $ -
Step 3: Calculate your gift-adjusted taxable estate .
Cumulative taxable lifetime gifts +
Estate-Tax-Free Transfer Threshold -
Gift adjusted estate value = $ -
Step 4: Calculate your estate taxes
Gift-adjusted taxable estate X .45 $ -
W18 STARTING POINT QUESTIONNAIRE WORKSHEET
1. How would you describe your housing situation? (e.g., rent, own, live with parents, roommates)
2. What will be your primary mode of transportation? (e.g., personal auto, carpool, public transportation)
3. How would you describe your relationship, marriage, or family plans? (e.g., single, married, children)
4. How would you describe your career field (e.g., engineering, medical, sales) and anticipated job title? (e.g., clerk,
manager, vice president)
5. What type of fringe benefits would you anticipate receiving? (e.g., retirement plans, insurance, vacation time)
6. What do you anticipate your first year income to be?
7. How much business travel do you anticipate? (none, 2 weeks per year, frequent)
8. How much personal travel do you anticipate? (none, 2 weeks per year, frequent)
9. Do you plan to continue your education?
10. In what types of recreational activities or hobbies will you participate? (e.g., sports, woodworking, hiking, etc.)
11. What types of household furnishings, electronics, and equipment do you anticipate purchasing during the target
year of your Financial Vision? (e.g., bedroom suite, refrigerator, television, etc.)
W19 PERSONAL INFORMATION WORKSHEET
Personal Information
Name: Date:
Address:
Telephone (home): Fax:
Marital Status: Single Married Divorced Widowed Other
Name of Spouse:
Date of Birth Self: Spouse:
Date of Citizenship Self: Spouse:
Names of Children:
1. Date of Birth:
2.
3.
4.
Names of Other Dependents:
1. Date of Birth:
2.
Financial Information
Occupation of Self:
Employer: Duration:
Address:
Phone: Salary:
Occupation of Spouse:
Employer: Duration:
Address:
Phone: Salary:
Other Sources of Income:
1. Amount:
2. Amount:
3. Amount:
W20 YOUR PERSONAL FINANCIAL GOALS WORKSHEET
Future
Priority Target Date or Current Anticipated Rate of Required Savings
Goals Level (0-5) Time Horizon Total Cost Total Cost Return* (Annual if multi-year)
Short-Term Goals (less than 1 year)
Intermediate-Term Goals ( 1 to 10 years)
Long-Term Goals (more than 10 years)
* The rate of return for a debt reduction goal would be the interest rate of the term loan or revolving credit line.
W21 PERSONAL PROPERTY INVENTORY WORKSHEET
This worksheet is not intended to be an exhaustive list; for insurance purposes you will want to itemize the list more carefully.
However, this document provides an excellent starting point and should provide at least a minimum of documentation. Of
course, the best method of cataloging your personal possessions is by narrated videotape or photographs.
Original Purchase Date Replacement
Rooms Purchase Cost (Month/Year) Cost
Living Room
Furniture
Electronics
Accessories
Other
Dining Room
Furniture
Artwork
Accessories
Sterling Silver/Pewterware
China
Crystal
Other
Family Room
Furniture
Electronics
Accessories
Other
Kitchen
Furniture
Electronics
Accessories
Appliances
Other
Den/Home Office
Furniture
Electronics
Accessories
Other
Library/Bedroom 4
Furniture
Electronics
Accessories
Books
Other
Master Bedroom
Furniture
Electronics
Clothing
Jewelry
Other
Bedroom 2
Furniture
Electronics
Accessories
Clothing
Other
Original Purchase Date Replacement
Rooms Purchase Cost (Month/Year) Cost
Bedroom 3
Furniture
Electronics
Accessories
Clothing
Other
Basement
Furniture
Electronics
Accessories
Appliances
Other
Attic
Furniture
Luggage
Accessories
Other
Laundry/Utility Room
Furniture
Appliances
Linens/Towels
Other
Garage
Tools
Machinery
Sporting Goods
Other
Collectibles
Coins/Stamps
Artwork
Stamps
Firearms
Other
Total Value $0.00 $0.00
W22 BENEFICIARIES CONTACT WORKSHEET
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
Name: Relation:
Bequest:
Address: Phone number:
W23 ESTATE PLANNING WORKSHEET
Do you and the members of your family know the location of . . .
Your will, durable power of attorney, and living will (with the name of the attorney who drafted them)?
The name of your attorney?
Your letter of last instructions, including burial requests and organ donor information?
Your Social Security number?
Your safety deposit box and the key to it?
A record of what is in your safety deposit box?
Your birth certificate?
Your marriage certificate?
Any military discharge papers?
Insurance policies (life, health, and property/liability), along with the name of your insurance agent?
Deeds and titles to property (both real estate and real, for example, automobiles)?
Your stocks, bonds, and other securities, and who your broker is?
Any business agreements, including any debts owed you?
All checking, savings, and brokerage account numbers, along with the location of those accounts?
The name of your accountant?
Your last year’s income tax return?
The name of past employers, along with any pension or retirement benefits information?
You should also
1. Calculate the size of your estate.
2. Estimate how much of your estate would be lost to taxes if you died.
3. Know who the executor of your will is and who your beneficiaries are.
4. Select a guardian for your children if they are under 18.
W24 ASSISTING PARTIES WORKSHEET
Executor of will:
Name: Relation:
Address: Phone number:
Co-executor of will:
Name: Relation:
Address: Phone number:
Power of attorney:
Name: Relation:
Address: Phone number:
Contingent or co-power of attorney:
Name: Relation:
Address: Phone number:
Health care proxy:
Name: Relation:
Address: Phone number:
Contingent or co-health care proxy:
Name: Relation:
Address: Phone number:
Guardian for minor children:
Name: Relation:
Address: Phone number:
Lawyer:
Name:
Law firm:
Address: Phone number:
Trustee:
Type of trust: Date of execution:
Name: Relation:
Address: Phone number:
Trustee:
Type of trust: Date of execution:
Name: Relation:
Address: Phone number:
INCOME STATEMENT WORKSHEET
For Target Year 2008 To Unprotect: 3140
TAXABLE INCOME Filer Spouse
Earned Income
Wages, Salaries and Tips
Bonuses and Commissions
Other
Total $0 $0
Unearned Income
Alimony
Interest / Dividends / Capital Gains
Rental Income Received
Tax Refunds
Other
Total $0 $0
Total Taxable Income $0 $0
Salary Reduction for Employer-Sponsored Benefits
Please enter figures from Part 3 - Risk Management
Life Insurance Expenses
Health Insurance Expenses
Disability Insurance Expenses
Other Pre-tax Benefit Expenses
Please enter figures from Part 5 - Life Cycle Issues
Tax-Sheltered Retirement Contributions
Adjusted Taxable Income $0 $0 $0
NONTAXABLE INCOME
Allowances (Family, Trust, etc.)
Child Support
Scholarships / Grants / Loans
Public Assistance
Nontaxable Gifts
Total Nontaxable Income $0 $0 $0
TAX CALCULATIONS
Part 1 Use the Tax Form on next page to calculate the Federal and Soc Sec Taxes
Federal Income Tax Estimate $0
Social Security / FICA Estimate $0
State Income Tax Estimate
(Taxes Subtotal) $0
Disposable Income (Available to spend, save, or invest) $0
2008 ESTIMATED INCOME TAX WORKSHEET
Please calculate your Adjusted Earned Income on the Income Statement before beginning this worksheet To Unprotect: 3140
Filer Gross Income $0.00
Filer's Age
Spousal Gross Income $0.00
Spouse's Age
Total Gross Income $0.00
Please enter valid filing status number
Filing Status Filing Status Entry Number
1 Single
Adjustments 2 Married Filing Jointly
Deductions 3 Married Filing Separately
Standard 4 Head of Household
or
Itemized
Number of Exemptions 1 $0.00
Taxable Income $0.00 Marginal Tax Rate #N/A
Average Tax Liability Rate #DIV/0!
Estimated Federal Income Tax Liability $0.00
Social Security/FICA Tax Estimator
Filer's Total Income $0.00
Filer' Tax Liability $0.00
Spouse's Total Income $0.00
Spouse's Tax Liability $0.00
Estimated Soc. Sec./FICA Tax Liability $0.00
COMMITTED EXPENSE WORKSHEET
For Target Year 2008
Disposable Income (Available to spend, save, or invest) $0 To Unprotect: 3140
DEBT MANAGEMENT
Part 2
Unsecured Debt
Credit Card Payment(s)
Student Loan Payment(s)
Personal Loan Payment(s)
Other Unsecured Credit Payment(s)
Secured Debt
Consumer Goods Payment(s)
Auto Payment(s)
Housing Payment (Rent or Mortgage)
Home Equity Payment(s)
Other Secured Credit Payment(s)
(Debt Subtotal) $0
INSURANCE PREMIUMS
Part 3
Life
Health
Disability (long-term and short-term)
Long-Term Care
Homeowner's/Renter's (if not included in mortgage)
Auto/Boat/RV
Other Insurance
(Insurance Subtotal) $0
SAVINGS / INVESTMENTS
Parts 2, 4, and 5
Emergency Fund
Short-Term Goal(s)
Intermediate-Term Goal(s)
Long-Term Goal(s)
Optional Retirement (Traditional IRA, Roth IRA, etc.)
Education Goal
(Savings Subtotal) $0
Total Committed Expenses $0
Income Available for Living or "Uncommitted" Expenses $0
UNCOMMITTED EXPENSE WORKSHEET
For Target Year 2008 To Unprotect: 3140
Disposable Income (Available to spend, save, or invest) $0
Total Expenses from Committed Expense Worksheet $0
UNCOMMITTED EXPENSES Subtotals
Other Taxes $0
Real Estate Tax (only if not included with mortgage payment)
Personal Property Tax
Transportation $0
Personal (gas, maintenance, licensing)
Public (cab/bus/subway fare)
Household $0
Utilities (water, sewer, gas, oil, electricity)
Communication (phone, cell, internet, etc.)
Subscriptions
Household Maintenance
Household Furnishings & Equipment
Child Care / Elder Care
Food $0
At Home
Away From Home
Tobacco/Alcohol
Health (medical, dental and eye care) $0
Deductibles and Co-pays
Prescriptions
Unreimbursed Expenses
Education $0
Tuition
Other
Lessons (music, sports, etc.)
Personal $0
Clothing and Accessories
Laundry/Drycleaning
Personal Care & Grooming
Entertainment $0
Movies, Theater, etc
Vacations and Travel
Professional Services $0
Banking and Investment expenses
Legal, Accounting fees, etc.
Discretionary Expenses $0
Contributions (religious, charitable, etc.)
Gifts and Allowances
Miscellaneous $0
Hobbies
Other
Total Uncommitted Expenses $0
Total Income Remaining $0
Instructions
Write an overall synopsis of your financial plan (at least 1,500 words) discussing your long-term
financial goals as well as your existing financial resources and obligations. Comment about any
financial risks you anticipate and risk management techniques you might consider to address them.
Finally, discuss your savings and investment goals and how they coincide with your lifestyle and
It is highly recommended that you compose your summary using a word processing program and then
copy and paste your summary in the shaded area below (cell A9). Use the "Word Count" calculator on
the right to verify the number of words in your summary.
Financial Plan Summary
Word Count
0