Personal Financial Plan

For
Jack and Lisa Howard
May 10, 2019
Financial Plan Jack and Lisa Howard

Summary

Your Current Situation:

● Approximate Asset ----$1,279,053
● Approximate Liability----$ 311,641
● Approximate Net Worth---- $ 967,412
● Asset Allocation ---- low risk based on Riskalyze report

Your Goals:
● Retirement Age: Jack at age 65 and Lisa at age 60
● Reach $1.75 M before retirement of Jack
● Need income until the last life expectancy of age 90
● Receive unreduced Social Security benefits

Behavioral/ Retirement Analysis:

Using the information you provided, calculations have been made to estimate whether your
current retirement program will meet your retirement goals. The analysis includes Social
Security benefits and strong/weak points of your current portfolio.

● Risk Tolerance: conservative

● Strength
○ 100 % success rate while keeping good financial health
○ Finish current mortgage or other loans payment before retirement
○ High liquidity
● Weakness
○ Early retirement and limited social security returns
○ Education costs

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Financial Plan Jack and Lisa Howard

Net Worth Statement

Jack and Lisa Howard

ASSETS
Savings and Investment
Money Market Accounts/Funds $286,153
Mutual Funds 2,900
$289,053

Retirement Accounts $500,000

$500,000
Personal Property
Residence $380,000
Furnishings 100,000
Jewelry and Art 10,000
$490,000

TOTAL ASSETS $1,279,053

LIABILITIES
Residence Mortgage $281,641
Car Loans 30,000
Credit Card Debt 0
$311,641

NET WORTH $967,412

Note: This asset information is based upon the information you provided and sources believed to
be reliable, so it is not exactly the same with an account statement.

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Financial Plan Jack and Lisa Howard

Asset Allocation

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Financial Plan Jack and Lisa Howard

Riskalyze Report

Risk 1 indicates that the current asset allocation is very safe and has a quite low chance of losing
your money.

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Financial Plan Jack and Lisa Howard

Cash Flow

○ In 2039 (Lisa retire)

Portfolio Value: $ 1.73 million
○ In 2041 (Jack retire)
Portfolio Value: $1.748 million

Note: This lifetime portfolio value was estimated on the assumption that the annual inflation rate
for the U.S. would be 3 % over the years.

Social Securities

Early: Social Security retirement benefits can be started as early as age 62. For those that need
the income, this may be the only choice. Taking early benefits lowers payouts permanently.
● Full Retirement Age: 67 (years of Birth: 1960 and later)

The monthly amount at the time of retirement (in today’s dollars):

● Jack’s monthly benefit (65)--- $1,362
● Lisa’s monthly benefit (62)--- $ 1,737

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