Congratulations! You have just
received word that you are receiving a $425,000 inheritance from your Aunt Sarah.
In order to prove that you are financially responsible and will make best use
of the funds, Aunt Sarah has requested that you present a detailed report on
how you will manage the funds the she worked so hard to earn. Here are the
stipulations:
A.) $42,500 Minimum – Aunt Sarah
understands that thankfulness and happiness comes from helping others. She
wants you to donate this money to at least three different charities or
religious organizations of your choice. She asks that you carefully consider
the many opportunities and causes that you can help with this money. She also
asks that you take some of your time to help others whenever you can possibly do
so.
B.) $42,500 Maximum – Aunt Sarah realizes
that you may want to splurge on a big-ticket item, pay off current debt,
upgrade your automobile, take a vacation, or satisfy some other desire/need. She
is allowing you to spend up to $42,500 now to satisfy this area.
C.) $42,500 Minimum – Aunt Sarah suggests
that you use this money to establish your first fully funded emergency fund.
She wants you to maintain this amount as a minimum and that you build this fund
up to where you have a minimum of 6 months of household expenses saved for
emergencies.
D.) $297,500 – Aunt Sarah’s investments
served her well in her older years and she wants to make sure that you have the
opportunity to experience a similar lifestyle in your later years of life. You
are to accomplish this by diversifying the remaining $297,500 among at least
three different investment areas such as stocks, bonds, real estate, annuities,
etc.
REQUIREMENTS:
1.) While respecting the wishes of your
Aunt Sarah, write an essay that describes your plans for your inheritance which
includes the following:
a. An itemized listing of exactly how you
will spend/invest the entire $425,000. (10 points)
b. Explain your reasons for your
charitable giving choices. (15 points)
c. Explain your reasons for your splurge choices.
(15 points)
d. Describe how you plan to maintain and
grow your emergency fund. (15 points)
e. Explain your reasons for your
investment choices. (15 points)
f. Prepare an itemized projection of how
much your original investments will be worth in 5 years. Support this amount with verifiable research (i.e internet
research, news/finance publications, etc). You must reference at least one
resource for each investment area (minimum of three). (10 points)
g. How has your attitude toward the idea
of receiving a $425,000 inheritance changed because of taking ACCT 2145 –
Personal Finance? (20 points)
Formatting Requirements:
1.) Do not type a Title Page.
2.) First Page: Your title should be centered one inch from
the top of the first page and typed using 14 point Calibri Light (Heading)
font. Skip 2 lines and begin typing the body of the paper. The essay should be
double-spaced using 11-point Calibri (body) font.
3.) All margins (top, sides, and bottom)
should be one-inch.
4.)
References
are to be cited using MLA format and should be on a separate page after your
essay. Minimum of three different references required. (10 points)
5.)
There
is no minimum page number requirement, but thoroughness will be heavily
considered for grading 😊 —(No more than 5 pages please)
6.)
You
project should be saved in a Word Document as
“YourFirstandLastName_2145Project_SP2024”
