Analyze Personal Financial Situation Using Appropriate Financial Tools

Financial Plan
Student’s Name
Institutional Affiliation
Financial Plan
This report uses the financial technique to present my current financial situation and illustrations of the expected directions of my choice. Future economic conditions are not determined as by now and they will change. The assumptions are used to show how the economic and market conditions will take place and are designed to make a debate of the necessary actions that will be needed to be taken in future to aid me to manage and maintain my current situation under the variable conditions
My Current Situation:
* My assets of approximately $752,000.
* My liabilities are approximately $320,000.
* My net worth is approximately $642,000.
My Goals
In intend to retire at age 63 and I have $516,000 in working assets and are adding $26,850 per year.
* Marry after 5 years with a budget of $50,000
* Have my own house after 6 years with a budget of $60,000.
* Meet my education goals by saving $10,141 annually ($845 monthly).
Asset Allocation:
* Long-term care assets at risk: $681,538
* Net Estimated Life Insurance Needs Shortage: $229,000.
Plan
It appears that money may run short before the last life expectancy of age of retirement. The range of possible options that might be considered to improve my situation includes the following:
* Increase the rate of return on my assets. Increase my annual savings by $3,500/year ($300 month). Reduce my debts.
* Extend my retirement by about 2 years.
* Combine any of the above and reduce the requirements for each.
Banking services
Personal income -The assessment of a person’s income should be focused in details when dealing with the financial plan of an individual. A person’s financial plan entirely depends on the sources of income for that particular person. A person may have different sources of income where he is earning from. The sources may be the employment income, the bonuses from a certain investment, payment of wages from an employer. This is so because the goals and objectives will require some funding .the dividends are also part of the income that should be considered in doing a detailed personal analysis for a person’s financial plan. All this sources of income create a roadmap for the plan or a budget. This is where the amount will be got from to fund the investments, to do some expenses and to pay for the insurance, and to do banking services.
Salaries-This is the amount an individual gets as payment while working for the organization or the company .The government employee may also be paid salary or wages .This payment is always paid at the end of the month or annually. This amount later is used for protection or spending as well as investments.
Dividends-This is the amount of money that is got from the returns of shares. Member buys shares in a company and at the end of the financial period after the company has recorded profits, he is paid the returns according to the investments that he so made to the company. This as well is the source of income for the individual, as he will use the same amount to send or to reinvest in other projects.
Wages is- the amount that is [paid to an individual after he has rendered services for the company or an organization. This wages may be paid in hours or it may be paid at an agreed period of time to the person who has rendered the services. This may be another source of income for a person who will later use it in investments, spending or by catering for the protection.
Pension- is the amount that is given out to an individual after he has worked as an employee of the company or the government for a specified period of time as a retirement package. This is a good source of income for the individual for spending or doing an investment.
Therefore this are the sources of income that should be in mind when creating the financial plan or budget for an individual
Career development
Expenditure- This is the amount that the individual has to part with in the daily activities. This should be focused in any budget or plan to be drawn by an individual as it is an integral part of the plan or budget. The expenditure is broad and can be discussed in the following points.
Rent-This is the amount that is paid out of the usage of land or a house that maybe of business use or for personal use. This is usually paid at the end of the month, year or as it may be agreed between the landlord and the tenant. This is part of the expense that should be brought to book when creating any budget of an individual. Also rates should be part of the expense to be recorded in the budget
Food- is part of the expense that is met for an individual in the daily life .This is also the expense that is ought to be met by an individual when coming up with the budget of any kind. Some allocation will be made for this particular expense which will cater for the food for the family for the period stated under the budget. This will ensure that all there is food security for an individual.
Taxes -is part of the expense that should be included in the column of the expenditure whenever doing the budget. One will have to pay taxes to the government in any business an individual is doing .Taxes will include rates that are to be paid to the government .for any business they must be paid as they are part of the government legislation. So they must be noticed while drawing the budget because the will be deducted from the income of an individual.
Travelling -is one of the expenses that are met by any individual in the daily life. It forms part of the expenditure as the money is moving out of an individual’s pocket. While coming up with a financial plan, it is important to note this down as part of the expense in the budget. Part of the income should be committed to this expenditure for an individual.
Credit card-This is also one of the expenses of any individual who aspires to draw a budget for a given duration of time. This should be indicated as part of the expenditure to be met by the person and the amount to be allocated for that. Unless one is not using the credit card is when it will be omitted from the budget. Credit cards...