30 Dec Complete retirement plan

Objective

http://vizedhtmlcontent.next.ecollege.com/ec/Courses/13775/CRS-DVUO-2148869/Images/021805ibtt.gif

The Personal Financial Plan Project will allow you to tie together many of the Terminal Course Objectives (TCOs) into a single worksheet that will be the basic foundation of your own personal financial plan. I would recommend that once you have completed the plan, you review it at least annually to make sure that appropriate revisions are made as your life and planning needs change.

Guidelines

http://vizedhtmlcontent.next.ecollege.com/ec/Courses/13775/CRS-DVUO-2148869/Images/021805ibtt.gif

The plan should be divided into six separate areas as outlined under the Personal Financial Plan section in Doc Sharing. The six areas are as follows:

Personal Financial Planning Goals

Balance Sheet

Income Statement

Annual Cash Budget

Ratio Analysis

Retirement Plan Analysis

Each of these sections should be constructed using the Excel spreadsheets found in Doc Sharing.

The planning report is due at the end of Week 7, but you should start planning your work schedule so you’ll have plenty of time to ask your instructor questions and to provide yourself with a useful and practical plan.

It is recommended that you start pulling together as much of your personal financial information and setting your goals as early as possible in the term so you are not forced to wait until the last minute to construct your report.

Grading Rubrics

http://vizedhtmlcontent.next.ecollege.com/ec/Courses/13775/CRS-DVUO-2148869/Images/021805ibtt.gif

Category

Points

%

Description

Personal Financial Goals

35

15.9

Goals must be prioritized, with cost estimates and target dates for each goal. If a goal does not have a cost, then you must explain why. A cost savings should be shown as a negative amount. At least three goals must be included for each category, but five goals are recommended. Goals must be achievable so that you can make progress against them. Cost estimates are assumed to be financed with cash, unless otherwise noted. Deductions will be made for goals that are not realistically achievable based on presented financial data.

Balance Sheet

35

15.9

Good format; date, title (is it just for you or the family), appears to include all components. Balance sheet must balance. Balance sheet date should be current (within timeframe of course).

Income Sheet

35

15.9

Prepare income statement for full year in good format.

Annual Cash Budget

35

15.9

Monthly projected cash budget for the next year in good format.

Ratio Analysis

40

18.2

Properly calculated; relevant analysis, including minimum half page written commentary on how you will improve ratios. Ratios must be linked directly to your financial statements, so it requires the use of Excel. (Ratios should be linked so they automatically update when changes are made to the financial statements.) Comparison must be provided of your ratios versus benchmark ratios discussed in this course. Ratios to be calculated include: liquidity, solvency, savings ratio, debt service, and debt safety ratios.

Retirement Plan Analysis

40

18.2

Complete retirement plan analysis (see template provided); assess your ability to meet your retirement goals based on your assumptions and analysis (minimum 1/2 page written analysis).

Total

220

100

A quality financial plan will meet or exceed all of the above requirements. The project must be submitted in one Excel workbook with each sheet appropriately labeled; it is your responsibility to make sure the templates are properly built. Points will be deducted for manually calculated numbers and incomplete information.