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  • Creating A Financial Plan

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    Chad H Turner
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    The document provides steps to create a financial plan including building reserve funds for unemployment, medical expenses, home repairs, and travel. It recommends completing financial education courses. It also outlines establishing future funds for retirement, activities, vehicles, education, and mortgage payoff. The plan includes deciding how to allocate unexpected money and evaluating life insurance needs. It concludes with setting monthly contribution goals and rebalancing investments annually.

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    Ideas and guidelines for creating a financial plan

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    The document provides steps to create a financial plan including building reserve funds for unemployment, medical expenses, home repairs, and travel. It recommends completing financial education courses. It also outlines establishing future funds for retirement, activities, vehicles, education, and mortgage payoff. The plan includes deciding how to allocate unexpected money and evaluating life insurance needs. It concludes with setting monthly contribution goals and rebalancing investments annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views4 pages

    Creating A Financial Plan

    Uploaded by

    Chad H Turner
    The document provides steps to create a financial plan including building reserve funds for unemployment, medical expenses, home repairs, and travel. It recommends completing financial education courses. It also outlines establishing future funds for retirement, activities, vehicles, education, and mortgage payoff. The plan includes deciding how to allocate unexpected money and evaluating life insurance needs. It concludes with setting monthly contribution goals and rebalancing investments annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 4

    How To Create A Financial Plan

    1. Build Reserve Fund a. Goal 1: Savings for Unemployment b. Goal 2: Savings for Medical Deductible c. Goal 3: Savings for Home repair d. Goal 4: Savings for Travel

    2. Commit to take Crown Financial Study and finish Morningstars free online Mutual Fund Education course at http://news.morningstar.com/classroom2/home.asp? colId=76&CN=COM

    3. Start Future Funds a. Goal 1: Start IRAs b. Goal 2: Start Mortgage pay-off c. Goal 3: Start Activities fund d. Goal 4: Start Car replacement e. Goal 5: Start Childrens education funds

    4. Decide WindFall Plan

    5. Evaluate life insurance needs

    6. Begin monthly contribution goals and rebalance portfolio yearly

    Reserve Funds (All Risk of 1-3)

    Medical:

    (Note: Max amount our deductible asks for)

    Home Repair:

    (Note: Have 1% of home value saved, plus hurricane and property insurance deductibles)

    Travel:

    (Note: Figure to have about $300 per family member saved up, for emergency travel trips)

    Unemployment:

    (Note: Six months of normal living expenses)

    Car Repair:

    $1,500

    Total Goal:

    Investment Plan for RESERVE FUNDS: (Vanguard.com) Short Term Inv Grade (Risk 1): $6,000

    Future Funds (all figures based at 7% interest) Old Age IRA: $ /mth

    (Note: At 65, how much need in the bank to support us)

    Activities Fund:

    $ /mth

    (Note: To cover vacations, boat, car replacement, and kids activities when older)

    Next Car:

    $ /mth

    (Note: Formula is for a monthly payment to save on: # of months till buy a car divided by how much want to spend)

    College Savings:

    $ /mth

    (Note: Use a 529 Plan, how must estimate need for children to go to college)

    Mortgage Pay-Off: $ /mth


    (Note: How start saving to pay off home mortgage early)

    Missional Fund:

    $25-50/mth

    (Note: Start with $500, plan to turn it over to your children when old and grey)

    Total Goal:

    $_______ to start accounts // $_________ per month

    Investment Plan for Future Funds: Short Term Inv Grade (Risk 1): $6,000

    Windfall Plan (for any money gifts we receive) 60% 20% 10% 10% - Savings - Car Replacement - Charitable Giving - Enjoyment

    (Note: Other ideas could be Additional Principle, Home Improvement Project, Education, etc)

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