Attachment # 00012077 - DGatheright_AB104_Financial_Plan_Workbook_Master_Unit_7.xlsx
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Worksheet 2.1 Personal Financial Goals Worksheet AB10418. Social security lump sum benefitThis worksheet will help you to determine your debt safety ratios. It indicates the amount of debt you have compared to your income. The debt safety ratio will indicate the percentage of your monthly income that is attributed to debt (what you owe). When completing this worksheet, you will use your monthly income and your total monthly debt to calculate your debt ratio.
Steps:
-Enter your monthly loan payments and take home pay.
-The debt safety ratio will automatically calculated by taking your total monthly payments and dividing it by your total monthly take home pay. That amount will be multiplied by 100. We use 100 because we are looking for a percentage.
- Example: $1500 (total Monthly payments / $4,500 (monthly take-home pay) x 100 = 33.33% this will be your debt ratio.
- This example indicates that you spend 33% of your income for debt each month.
If you want to lower your debt follow these steps:
- Determine the rate you would like your debt ratio to be.
- If you want this calculated on your current income use that figure then multiply this amount by the new target debt ratio. This will give you the new monthly amount you must pay to reduce your ratio.
**Note: The final figure will tell you how much you will need to pay additionally on your debt each month to achieve your desired debt ratio.This worksheet will keep you updated on how much debt you currently have. You will list all your debts (money you owe) and their current balances. This will be a good tracking tool for your debt and will need to be updated frequently.Current Monthly Payment*Monthly income (Item 1 divided by 12)Average lender's affordabilitiy ratioAuto and personal LoansEducation loansOverdraft protection lineMonthly take home payCurrent monthly or minimum payment Months to breakeven (Item 6c/Item 5)Estimate of Cost/WeekEstimate of Cost/MonthEstimate of Cost/YearCash on handStocksBondsTravel/entertainment billsStudent loans Other long term loansRecreationVacations totalsRental carPet boardingSouvenirsAccommodationsPlane fareVacationsHealth totalsLife insurance2.Use monthly take-home pay x Target debt ratio**This worksheet will assist you to determine the amount of life insurance coverage you will need to help your family financially upon your death. It uses the money which will be available, as well as the total expenses incurred at your time of death, and the debt you will owe. LaundryLaundryOtherWednesdayFood
(H) Home
(S) SelfCellular telephoneHome telephoneMortgage/rentEXPENSESIncome totalsMiscellaneousInterest/dividendsWagesINCOMEYearDecNovOctSeptAugJulyJuneMayAprilMarchFebJanRunning Total:Name: CommentsTable of Monthly Mortgage PaymentsWeek 2: Enter the spending log dates below.Week 3: Enter the spending log dates below.Other 9. Household emergency fund (Monthly household expenses X 3)Latest Balance
DueCredit Cards
(retail charge cards, bank cards, etc)Cash short/extraTotal expensesMisc. payments totals OtherMisc. paymentsTotal monthly payments/Total monthly take-home pay x 100Creditor NameTotal AssetsInternet connectionNewspapersMagazinesDues/subscriptionsRecreation totalsToys/child gearTeam duesSports equipmentGym feesDues/subscription totalsCharityReligious organizationsPublic televisionPublic radioTuesdayWednesdayRunning total:For the period of Self-employment IncomeName of Earner: Maximum monthly mortgage payment (PITI)
Mortgage payment per $1000
11. Annual cost of lost support services
(child care, eldercare, housekeeping)Years =12. Reduction in family expenses due to death (estimated 20–25%)
Maximum purchase price based on available monthly income Total refinancing costs (Item 6a + 6b)Monthly Consumer Loan Payments & Debt Safety RatioType of LoanLenderEducation LoansVeterinarians/pet medicinesCo-payments/out-of-pocketOver-the-counter drugsPrescriptionsHealth club duesEntertainment totalsConcerts/clubsMovies/playsVideo/DVD rentalsCable TVTransportation totalsPublic transportationParkingCar wash/detailing servicesRepairsGas/fuelDaily living totalsDog walkerHousecleaning serviceChild careGroceries Daily livingHome totalsGarden suppliesHome securityHome improvementHome repairsTOTAL MONTHLY TAKE-HOME PAYDebt Safety Ratio:Changes needed to reach a new debt safety ratio1. New (target) debt safety ratio:Type of Consumer DebtCreditorPersonal Installment LoansHome Improvement LoanOther Installment LoansSingle Payment LoansPersonal Line of CreditHome equity creditlineloan on life insuranceMargin loan from brokerOther LoansTOTALSShort-Term Goals (1 year or less)GoalPriorityExpected Date of CompletionIntermediate-Term Goals (2 to 5 years)Long-Term Goals (6 + years)EducationDonationsComments:Total SpentFood
(H) Home
(S) SelfRecreation
LeisureHealth,
Personal CareAdd CategoryDay of weekThursdayFridaySaturdaySundayMondayTotal LiabilitiesNet WorthTotal Liablities & Net WorthNameIncomeName:Bonuses and CommissionsInvestment IncomeInterest receivedFinancial obligation totalsOther obligationsIncome tax (additional)Credit card paymentsRetirement (401k, Roth IRA)Long-term savingsFinancial obligationsPersonal totalsMusic (CDs, etc.)BooksSalon/barberDividend receivedRents receivedSale of SecuritiesOther IncomeTOTAL INCOMEExpensesHousingRent/Mortgage payment Repairs, maintnenace, improvementsGasElectricWaterPhone CableGroceriesAuto Loan PaymentsLicenses plates, feesGas, oil, tires, repairsMedicalHealth major medical, insuranceDoctorDentist Medicines15. Total fund needed values)Total outstanding debt to repayTotal lump sum needs14. Net income shortfallTotal life insurance needs2. Funeral expense (average $10,000, but less for cremation)1. Uninsured medical expenses (deductible and copay) a. Mortgage b. Car loan(s) c. Credit cards and other loansLine 14 x Number of years to replace Date:Approximate average interest rate on loanItemDescriptionAmountAmount of annual incomeEstimated monthly property tax and homeowner's insurance paymentMaximum monthly loan payment (Item 4-Item 5)Planned loan maturity (years)DateCurrent monthly paymentMonthly savings, pretax (Item 1 - Item 2)Monthly savings, after-tax (Item 3 - Item 4)Costs to refinance:Prepayment penaltyb.Total closing costs (after tax)c.GiftsClothingPersonalFoodInsuranceHealthEntertainmentDining outDry cleaningUtilitiesHomeTransportationMoney market accountsA. Costs at deathYourselfOverdraft protection LinePersonal line of creditCredit cardsHome equity line of creditTOTAL MONTHLY PAYMENTSFunds available for making a down payment
(Note: Closing costs are separate from down payment and should be considered when purchasing a home)Total investment AssetsTotal Long- term LiabilitiesWages and SalariesPensions and AnnuitiesLoan paymentsVacationsTotal Liquid AssetsYour Spouse3. Settlement of estate (estimate 4% of assets)4. State inheritance taxes (if any)5. Counseling costs for adjustment to lossB. Lump Sums6. Outstanding debts8. Spouse retirement fund7. Education costs for children or spouseTotal costs at death C. Cost of Household Maintenance10. Deceased annual after-tax income13. Annual Social Security survivor benefitsTotal household maintenance fund needsD. Available Resources to Meet Needs16. Total savings and investments17. Group life insurance19. Total resources to meet needs Balance SheetChecking accountsSavings accountShort term investmentsTotal Personal PropertyPersonal PropertyTotal Real PropertyCertificate of depositLiquid AssetsMutual FundsRetirement Fund, IRAOtherReal PropertyPrimary ResidenceSecond HomeInvestmentsAutoRecreation VehiclesHousehold furnishingsJewelry and artworkCurrent Liabilities UtlitiesRentInsurance premiumsTaxesMedical/dental billsRepair billsBank Credit Card billsStore Credit Card billsGas credit cardsBank line of creditOther liabilitiesTotal Current LiabilitiesLong-term LiabilitiesMortgageSecond MortgageInvestment mortgageAuto LoansHome improvement loanSingle-payment loansClothes shoes, accessoriesHomeowner'sLife InsuranceAuto InsuranceIncome and Social SecurityProperty (if not included in mortgage)Dining OutMajor purchasesPersonal Carecosmetics, hair care etc.otherOther ItemsCharitable contributionsstudent loan paymentsTOTAL EXPENSESCash Surplus (or Deficit)MONTHLY INCOMENOWRETIREMENTSalary (including spouse)Commissions, Bonuses, TipsInterest, DividendsSocial SecurityRental IncomePensionsAnnuitiesVeterans BenefitsTOTAL INCOME (A)MONTHLY EXPENSES Mortgage Property Tax Homeowner’s Insurance Rent Utilities Maintenance Fees Groceries Dining Out Vehicle Maintenance Fuel Auto Insurance Public TransportationHealth Care Medical Services Medications and supplies Health InsurancePersonal Insurance Life Insurance Disability Insurance Long-term insurance Other insurancePersonal expenses Clothing Products and servicesMiscellaneous Expenses Loans and Credit cards Travel or vacation Hobbies Gifts Education Charitable ContributionsTOTAL MONTHLY EXPENSES (B)Retirement Needs:NOW: A - B =surplus or (deficit)Retirement: A - B =Surplus or (deficit)Answer the following questions regarding your calculations:1. What have you learned from completing your retirment calculations?2. Are there adjustments you need to make now? Or later?3. What changes will you have to make in order to retire comfortably?4. Has there been a change in your financial outlook for the future?Years until Retirement5% Inflation FactorStock nameStock 2Stock 3 DateSymbolPurchase PriceSection B: In this area you will record your weekly market value of your stock.DateUnit 3Unit 4Unit 5Unit 6Unit 7 Gain or lossUnit 2Unit 3Unit 4Unit 61. What economic issues affected your decisions to purchase the stock?2. How will the current market value of your stock affect your finances?3. How can any furutre investment you make affect your financial plan?4. How will your financial plan help your with any future investments for your personal wealth?Directions: To determine future income (in dollars) you go to the number of years before retirement and locate the factor. Mulitiply the factor times the income amount in your 8.1 Retirement Needs Calculator worksheet.Stock 1Current Price Stock 1Current Price Stock 2Current Price Stock 3Total InvestmentSection C: This calculates the amount of investment per week based on current week stock price and number of shares.Section D: In this section you will record comments from each unit and answer the 4 questions below.Total Investment Each Week1. What would you do if you suddely lost your job and had no income? Unit 2: Worksheet 3: Questions3. Discuss the importance of having a financial plan.4. What could be the long-term effects from this situation?2. How long would you be able to survive finacially?Directions: Please record every penny you spend each day, beginning no later than Thursday (the second day of this class) and ending Monday (the day before the unit ends). Your daily spending log for week two will begin the following day (Tuesday).
Place the amount you have spent in the categories provided below. Additional categories can be added in columns J and K. Make sure you record cash spent and credit card charges. If you have more than one transaction for the same category, total the amounts spent and add it to the appropriate cell in this worksheet. The total expenditures in column M will automatically compute for each day. Explain daily expenditures in the comments section in column N. If your entire comment does not appear in column N, double-click on the row dividing line to automatically enlarge the cell to fit the text.
Provide a brief summary of your expenditures for week one in row 16. Identify categories within your daily spending log that could be reduced to decrease the total amount of your spending.
Please save this spreadsheet each time you add information. When you are ready to submit, save your workbook by clicking the Office button at the top of your spreadsheet then click Save As. Name the file Username-AB104 Financial Plan Workbook Unit#.xlsx (Example: TAllen- AB104 Financial Plan Workbook Unit1.xlsx).
(Enter date started here)Directions: Please record every penny you spend each day, beginning Tuesday (the last day of Unit 1) and ending Monday (the day before the unit ends).
Your daily spending log for week three will begin the following day (Tuesday).
Place the amount you have spent in the categories provided below. Additional categories can be added in columns J and K. Make sure you record cash spent and credit card charges. If you have more than one transaction for the same category, total the amounts spent and add it to the appropriate cell in this worksheet. The total expenditures in column M will automatically compute for each day. Explain daily expenditures in the comments section in column N. If your entire comment does not appear in column N, double-click on the row dividing line to automatically enlarge the cell to fit the text.
Provide a brief summary of your expenditures for week two and answer each question posted below.
Please save this spreadsheet each time you add information. When you are ready to submit, save your workbook by clicking the Office button at the top of your spreadsheet then click Save As. Name the file Username-AB104 Financial Plan Workbook Unit#.xlsx (Example: TAllen- AB104 Financial Plan Workbook Unit1.xlsx)
Directions: Please record every penny you spend each day, beginning Tuesday (the last day of Unit 2) and ending Monday (the day before the unit ends).
At the end of this unit ,your daily spending log will provide a summary of three weeks of total expenditures.
Place the amount you have spent in the categories provided below. Additional categories can be added in columns J and K. Make sure you record cash spent and credit card charges. If you have more than one transaction for the same category, total the amounts spent and add it to the appropriate cell in this worksheet. The total expenditures in column M will automatically compute each day. Explain daily expenditures in the comments section in column N. If your entire comment does not appear in column N, double-click on the row dividing line to automatically enlarge the cell to fit the text.
Provide a brief summary of your expenditures for week three and answer each question posted below.
Please save this spreadsheet each time you add information. When you are ready to submit, save your workbook by clicking the Office button at the top of your spreadsheet then click Save As. Name the file Username-AB104 Financial Plan Workbook Unit#.xlsx (Example: TAllen- AB104 Financial Plan Workbook Unit1.xlsx)
1. Provide a brief summary of your expenditures for week three.2. Are there any banking fees that you encounter each month? What actions might be taken to reduce or eliminate these cash outflows?3. What other areas of your daily spending might be reduced or revised?Summary - Answer the three summary questions below.1. Provide a brief summary of your expenditures for week two.2. What information from your daily spending log might encourage you to reconsider various money management actions?3. How can your daily spending log assist you when planning and implementing a budget?Summary - Answer the two summary questions below.1. Provide a brief summary of your expenditures for week one.2. Identify categories within your daily spending log that could be reduced to decrease the total amount of your spending.Section A: In this area you will record your initial Purchase of the stock.Directions: You are given $10,000 to invest in the stock market. You are to pick stock of your choice. No more than three different stocks and you must invest the whole $10,000. You will enter your stock name, symbol, the date, the price and the total number of shares purchased. Each week you will check your stock and record the current market value. In the comment section you will note any changes and the possible reasons for the change. You will do this during all units between starting with Unit 2 and ending with Unit 7.# of sharesSometimes unexpected events happen in our lives, and our cash flow is affected. Do you have a plan in place? Answer the following questions.The personal balance sheet is a summary of your assets (what you own), your liabilities (what you owe), and your net worth (assets minus liabilities).
Steps:
1. List the value of your assets according to the categories in column B of the worksheet.
2. List the value of your liabilities according to the categories in column E of the worksheet.
3. The net worth is calculated and displayed in cell E34.
*Net worth = total assets (B37) minus total liabilities (E32)
*Total assets = total liabilities (E32) + net worth (E34)Credit CardsLoan paymentsRepairs & maintnenanceA Personal Income and Expense Statement is a cash basis statement that shows the actual cash receipts and actual expenditures for a certain period of time. This statement includes all income and expenses for the month. Total income minus total expenses will provide you with your cash surplus or cash deficit. If your total income is greater than your total expenses, you will have a cash surplus. If your total income is less than your total expenses, you will have a cash deficit.
Steps:
1. List all of your income.
2. List all of your expenses according to each category.
3. The cash surplus or cash deficit is automatically calculated in cell D59.
Cash surplus/deficit formula: total Income (D20) minus total expenses (D57).
New monthly paymentIncome Tax Bracket (Enter as decimal)Tax on monthly savings (Item 3 x Item 4)a.3. Pre-tax savings on monthly payment will be automatically calculated (H12 - H13).5. The monthly savings after tax will be automatically calculated in cell H17.6. Enter the costs to refinance your mortgage. Check your mortgage papers or lender’s policy to find the prepayment penalty.7. The months to breakeven are automatically calculated in cell H22. This is calculated by taking the total refinancing costs (H21) and dividing it by your monthly savings after tax (H17). Directions: There are nine items to fill in on this sheet.
Item 1 (Include all income)
Item 3 (An average lender's affordability ratio has been provided. This can range from 28 to 33 percent depending on lender.)
Item 5 (Do some research on houses in your area to determine the combined monthly tax and insurance payment.)
Item 7 (research for current interest rates)
Item 8 (determine the number of years for loan. This is usually 15 or 30).
Item 9 (Find this value by using Item 7 and Item 8 and Table of Monthly Mortgage Payments (below).)
Item 11 (How much do you have available for a downpayment?)Maximum loan based on monthly income
$10,000 x (Item 6 divided by Item 9)Using the Table of Monthly Mortgage Payment (left side)Instructions:
1. Find the interest rate in the first column for your loan.
2. Locate the value that corresponds to the length of your loan.
3. Place this number in Line 9 of this worksheet.
A budget is a forecast of your income and expenses and is very important to insure a secure financial future.
A budget is a specific plan for spending income which is also called a spending plan.
Steps:
1. Enter your estimated income for each month in rows 5 through 8.
2. Navigate through the categories and enter any expenses you think you may have in the upcoming year. Please remember to include the auto or life insurance premiums.
3. The totals category (row 8, 19, 28, 37, 44, 54, 63, 70, 80, 88, 96, 104) will indicate how much money you will spend in each category by month.
4. Your total expenses will display in row 106.
5. Your surplus or deficit of money available will be displayed in row 107. This is computed by deducting your total expenses from your total income. 6. Once you have completed your budget for the year, go to worksheet "U2 2.3 Questions" and answer the questions.
1. Enter your current monthly payment.This worksheet will assist you in making the decision to re-finance your current mortgage or not. It will look at the savings you may receive if you refinance you existing mortgage.
Steps:Setting goals for your financial future is an important step in the financial planning process. This sheet can be used to help you plan for your financial success.
This worksheet is divided into three separate areas:
* Short-term goals are goals to be obtained in one year or less.
* Intermediate goals are goals which are obtainable in two to five years.
* Long-term goals are goals which is obtainable after five years.
Steps:
1. Place each goal in the appropriate area and indicate the priority, expected date of completion, and the estimate of cost each week. Provide goal comments in column G.
2. Once completed, make sure you carry over the monthly costs for your investments to your U2 2.2 Personal Annual Budget worksheet.
Week 1: Enter the spending log dates below. Unit 2: Worksheet 2.1 Personal Financial GoalsDaily Spending Log- Unit 1Daily Spending Log- Unit 2Unit 2: Worksheet 2: Personal Annual BudgetDaily Spending Log- Unit 3 Unit 3: Worksheet 1: Balance SheetUnit 3: Worksheet 2: Personal Income and Expense StatementUnit 4: Worksheet 1: Mortgage Refinance AnalysisUnit 4: Worksheet 2: Home Affordability AnalysisUnit 5: Worksheet 1: How's My Credit?Unit 5: Worksheet 2: Tracking Your Consumer DebtUnit 6: Worksheet 1: Life Insurance NeedsUnit 7: Worksheet 7.1 Stock TraderUnit 8: Worksheet 1: Retirement NeedsDirections: It is important for you to understand and know what your current financial needs and your future needs at retirement. To complete this worksheet you will fill in the various categories that pertain to your situation for now and later. You will need to include all income and expenses for both now and at retirement. You will use your monthly averages for both income and expenses. For your monthly income at retirement you will use the 5% inflation factor from worksheet 8.2 based on your number of years until retirement. Enter the factor in cell F3 to see the calculations of income categories needed at retirement based on this 5% inflation factor.Unit 8: Worksheet 8.2 Inflation Table2. To find out what the new payment amount will be go to http://www.bankrate.com. Click on “mortgage rates” and enter your state and your city. Enter amount to be refinanced and the length of loan. This will give you different banks in the area with their rates and the payment amount. Enter the payment amount on line 2.4. Calculate the taxes on your monthly savings. Even though you may be saving money with the refinance, it will result in more taxable income. Determine your income tax bracket in cell H16. If you do not know your income tax bracket go to: https://www.efile.com/tax-service/tax-calculator/tax-brackets/ : Enter the year and your filing status. Then locate your gross income amount and your income tax bracket.Note: Only use those loans that require regular monthly payments
Solution: Unit 7 Assign - Personal Finance