Write a short paper (2‒4 pages). Do not submit a copy and paste of your Milestones One and Two short papers. The short paper for the final project should be a new submission, although it may include relevant information from Milestones One and Two papers. Include the following rubric criteria:
Based on your income available for savings and investment from your Simplified Income Statement, are you able to save enough annually to fund your personal financial goals, including retirement? Provide supporting details.
What changes may be required to your plan? Considerations may include:
Finding another career position and increasing income
Purchasing a smaller home
Curtailing retirement funds
Deriving savings elsewhere
Explain the investment decisions that will support your personal financial goals, including retirement. Considerations may include:
Your personal level of risk tolerance
Diversification
Identify estate planning documents that you will put in place. Consider which of the following documents apply to your specific situation and explain why:
Will
Codicil
Letter of last instructions
Living will
Here is a rough draft of what I want to be included/mentioned in the paper. Please utilize what I wrote below but obviously add to it using critical thinking and write it academically. This was just a rough draft so you get a good idea of what to write.
Based on my income available for savings from my simplified income statement (worksheet 5), I am not able to save enough annually to fund my personal financial goals, including retirement. On my simplified income statement, I only have a saving of $4309 per year. However, by calculating my retirement needs, based on worksheet 16, I need $7316 per year in order to meet my retirement needs.
The changes that are required for my career will be completing my masters in ABA in 3 years. This will increase my income double what I am earning now. I will be able to be increase my yearly investment to $7316. b.
I will also consider purchasing a home in a more affordable area. Based on my short term goals in worksheet 1, my immediate short term goal was saving money for emergency funds, however, another consideration I have at this time is, in order to finish my education and avoid student loans, I consider having a roommate to decrease my living expenses. When I graduate and earn my BCBA license, my total income that will be available to me for savings and investments rather than paying for student loans.
Since I have not been investing in any retirement funds, I am planning to begin the process of investing in a 401k.
After calculating my social security, based on my current income in the last 3 years, I am only eligible for $2566 a month. Therefore, my goal is to finish my masters to receive an increase in salary in order to increase my social security income. Increasing my salary will help to save for my downpayment, for my 401k, increase my social security income.
Since I am just starting to explore my investment decisions, in order to support my personal financial goals including retirement, I may be able to take on a conservative or moderately low risk tolerance with lower or balanced potential returns such as stocks. According to the volatility of the stock market, adjusting to a low-risk tolerance might lead me to a stable dividend- paying stock. Using low risk tolerance, I will not loose my own investment. In order to have a low risk of loss, I will use diversification method by putting my assets into different stocks and real estate.
Based on my age, I am a 27 year old student, working part-time and I have zero assets, according to the government, in order to save on taxes, it is a great idea to have a will, however, the minimum to pay for taxes is _______ (page 560, book) therefore, I don’t have any planning for a will, however, what will apply to me is a living will. This document is crucial to have because
I have attached all the worksheets and milestone projects you can refer to whenever you need. Please let me know if you have any questions. Thank you so much!
