FNCE 627 – Personal Financial Planning (Case Study)

Introduction:

In this individual assignment, you will be provided with a comprehensive case study. Your task is to evaluate the provided information and develop a written financial plan within a maximum of 8 pages. The financial plan should cover various aspects, including assumptions, key considerations, recommendations, financial analysis, and strategies for the case study individual or family.

Table of Contents:

Your written financial plan should be structured with the following sections:

1. Assumptions and Key Considerations:
   • Clearly outline the assumptions made during the financial planning process, such as inflation rates, investment returns, and other relevant factors.
   • Identify key considerations from the case study that may impact the financial plan’s development.
2. Recommendations:
   • Summarize the core recommendations for the case study individual or family. Provide a high-level overview of the proposed financial strategies.
3. Financial Analysis:
   • Conduct a thorough financial analysis based on the case study data. Include analyses of net worth and cash flow to gain insights into the current financial situation.
4. Net Worth:
   • Calculate and evaluate the case study’s net worth by considering all assets, liabilities, and equity. Discuss the implications of the net worth analysis.
5. Cash Flow:
   • Examine the cash inflows and outflows to determine the case study’s cash flow position. Analyze cash flow patterns and offer suggestions for improvement.
6. Strategies:
   • Present a comprehensive set of financial strategies tailored to the case study’s goals and financial situation. Include strategies for investment, risk management, tax planning, and more.
7. Insurance Coverage:
   • Evaluate the existing insurance coverage and propose any necessary adjustments or additional policies based on the case study’s needs and risk profile.
8. Retirement:
   • Develop a retirement plan, considering retirement goals, sources of income, and investment strategies to ensure a secure and comfortable retirement.
9. Education:
   • If applicable, outline a plan for funding education expenses, taking into account the case study’s objectives and time horizon.
10. Major Purchase:
    • If relevant, provide recommendations and financing options for significant purchases, considering the impact on the overall financial plan.
11. Emergency Fund:
    • Suggest an appropriate emergency fund amount and location for the case study individual or family.
12. IPP (Individual Pension Plan):
    • Analyze the suitability and benefits of an Individual Pension Plan for the case study’s retirement needs.
13. Estate Analysis and Discussion:
    • Evaluate the case study’s estate planning requirements, including wills, trusts, and distribution of assets.
14. Selling the Business:
    • If applicable, develop a tax-efficient strategy for selling the case study’s business and handling the proceeds.
15. Tax Planning for Selling the Business:
    • Present a comprehensive tax planning approach for the case study’s business sale, considering applicable tax laws and regulations.

Submission:

• Please study the individual project rubrics carefully before the submission.
• Only PDF file is acceptable.