I just want you to proof read it and make english perfect. No Grammar, english, punctuation, sentencing errorPlease bid upto $5Running Head: PERSONAL FINANCIAL PLAN
Personal Financial Plan
Student’s Name
Institutional Affiliation
Course
Date
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PERSONAL FINANCIAL PLAN
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Table of Contents
Table of Contents
Career Planning…………………………………………………………………………………………………………………………… 3
Duties and Responsibilities …………………………………………………………………………………………………………… 3
Financial Goals …………………………………………………………………………………………………………………………… 4
Short Term Goals …………………………………………………………………………………………………………………….. 4
Mid-term goal …………………………………………………………………………………………………………………………. 4
Long Term Goals …………………………………………………………………………………………………………………….. 5
Banking Services ………………………………………………………………………………………………………………………… 5
Housing Decision ………………………………………………………………………………………………………………………… 7
Automobile ………………………………………………………………………………………………………………………………… 7
Insurance ……………………………………………………………………………………………………………………………………. 8
Investments ………………………………………………………………………………………………………………………………… 9
Monthly Budget ………………………………………………………………………………………………………………………… 10
PERSONAL FINANCIAL PLAN
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Career Planning
I am a twenty-eight-year-old bachelor currently working as a junior Accountant for
Danaher Company, San Jose USA. Danaher company is a worldwide science and technology
company devoted towards helping most of its consumers solve composite challenges and
enhance their quality of life throughout the world. The company has raised an equity of more
than eighty million dollars, which has been disseminated by at least 150 distinct investors. The
company’s trusted brand holds unmatched positions of leadership in diagnostics, environmental,
applied, and life science solutions. Basically, the company’s goal is to help people acknowledge
their potential in life with over twenty operating firms, its worldwide team of 59, 000
acquittances. Am working towards becoming a senior accountant by working hard and staying
committed throughout my time in the company. My current salary is $ 5, 695 yearly with a
bonus of $ 1, 234 fore every year of being the company’s employee. My responsibilities as a
junior accountant in the company are highlighted in the section below.
Duties and Responsibilities
•
Posting the journal entries
•
Maintaining both the accounts payable and accounts receivable
•
Preparing the company’s tax returns and accounts.
•
Updating the financial statements
•
Preparing and compiling the company’s business plans, budgets, financial statements and
reports.
PERSONAL FINANCIAL PLAN
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Financial Goals
Short Term Goals
A short-term goal simply refers to a goal that one can achieve in less than twelve months.
I have three major short goals. My first short-term goal is pay-off my current card debt. I also
plan is also to chip some money in my savings accounts that would help me settle my upcoming
expenses, as well as purchase some materials that would help me build my house. My third goal
involves creating an emergency fund. This emergency fund would enable me live for some
months if I happen to lose my current job or if something unforeseen came up that would cause a
huge sum of cash to cover it up. An emergency fund will also be in place to help cover up a
minimum of two months expenses if a time comes when I would lose my job. Monthly expenses
(variable and fixed), total to $4,799.93. This means that saving at least 100 a month, would take
at least 47 months (approximately 4 years) to have the minimum amount required to cover the
expenses for two months. Generally, this would involve saving for a two months work salary in
my emergency fund.
Mid-term goal
My mid-term goal is to apply for a mortgage loan to buy or build a home in the next 2or 3
years. A lot of homes need a minimum down payment of 20% for the thirty-year mortgage. To
establish how I can afford it, the thumb rule is that the housing expense should surpass 25% of
my monthly revenue. Thus, with the help of savings and the mortgage loan, I am optimistic that
this goal would come true.
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Long Term Goals
Long term goals are the goals that one aims to achieve in future. My first long-term goal
is to pay-up my car loan. I still owe the company $5,400 though with the 2.5% interest rate,
clearing the loan off, places it as my number one priority when compared to my other long-term
goals. After clearing my car loan, I will then focus on paying my student loan. This would me
my second long-term goal. In this case, I will intend to make bi-weekly payments. My third
long-term goal is to create a savings account for my younger brother’s education. My company
offers numerous opportunities that can help advance my education. My other long-term goal
involves comfortably retiring at the age of fifty with my house and student loan paid off, and
with sufficient funds to cover up any unexpected expenses that may arise like repairs or tour
travels.
Banking Services
Currently, I have a total of two major checking accounts, one savings account, and two
retirement. A checking accounts are afforded by banks and other financial institutions. Firstly,
our company pays our salary through the banking system, City National Bank, where I use an
ATM card to make withdrawals. I also have another account with the same bank, the City
National Bank where I make bi-monthly deposits of 2.0% of my savings that would help me pay
my younger brother’s education in future. Savings accounts such as checking accounts allow you
to use a debit card or a check card to access your cash, though you will have to carry a cap of
how many times per month you can access this cash. Such savings accounts pay interest on the
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cash available on these accounts, however small the amount might be in order to offer incentives
not to touch this money. There are several easier ways of making your money work for you with
higher interest rates, however, based on the bank you are using, savings accounts make things
easy. I also have two retirement account at Comerica Bank, where a percentage of my monthly
salary is deposited for use after retirement. The firm also matches up to 2% as demonstrated in
the table and pie chart below
Growth
45%
Income and growth
32%
Equity Income
14%
Bond
9%
9%
14%
45%
32%
Growth
Income and growth
Equity Income
Bond
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Housing Decision
As a temporary employee in Danaher company, the options for housing can be quite
limited. Why? this is because at one point or another, the company may choose transfer me to
another branch in another state. Also, I might in future get an advanced jo position in another
state which would compel me to relocate to a place near the company, thus the only rational
option available is for me to rent. Though my goal is to apply for a mortgage loan that would
make my dream possible. I plan on buying a house at San Jose because its my home birth place.
Besides, most of my family members live in this city and that includes my father, mother, and
aunts. I also purchasing a house at this reason is the best option for me because I plan on staying
on this region after retiring.
Another reason behind why I would love to purchase a house is that the houses available
within the city are quite expensive considering my moderate monthly income. For example, the
company offers me a monthly housing allowance of $ 1,236. Since am currently renting a a
medium two-bedroom house with two bathrooms, which is approximately 1,500 sq. feet, it costs
me $1,350 every month. However, if I choose to buy a house then I would live in a fourbedroom house, which is approximately 2,400 sq. feet, then my mortgage payment would only b
$1,140 per month, meaning I would still have some money to pocket at the end of the day.
Automobile
My company along with its numerous benefits have superposed most facets of my fiscal
life, and this includes automobiles. By being an employee at Danaher company, you get to meet
various kinds of people and personalities from globally. Most of these people have different
working experiences with other great leading software, financing and accounting companies,
PERSONAL FINANCIAL PLAN
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automobile firms being one of these companies being the General Motors, an automobile
company that offers automotive financing services. It also involves itself in selling, designing,
and manufacturing truck, cars, as well as other automobile parts. As an employee at Danaher
Company for 3 years, I managed to save some of my monthly salary that enabled me purchase
my own car from Honda Motors with the help of my counterparts who were working for this
firm. Though, I used to have an old car, so I was advised that I could trade it in with a new
vehicle. This was a great experience for me. This is because throughout the years, I have never
purchased a brand-new car. I bought a Honda Civic Motor, a 2014 model which is commonly
known for its reliability. Trading in the older vehicle for the new car reduced the initial price
from $16, 500 to around $11,500.
Most of my colleagues own a bank account with the City National Bank, a bank used by
our company to reimburse its workers. Thus, due to this fact, these bank offers a lower car loan
percent when compared to other banks. They also have created a program that offers a discount
on the interest rate for Danaher company worker, reducing their car loan percent rates by even
1.5% of their usual rates. Thus, making the car loan expense every month to be $ 1, 725.
Insurance
Throughout USA, car insurance is similar for everybody else. For my case, I took my car
insurance from State Farm. State farm is an enormous group of financial and insurance service
firms based in USA. I chose to apply my insurance at State farm because it also offers casualty
and property insurance products, particularly in distinct lines. Besides, its rates are quite cheaper
and affordable compared to other insurance firms. The average car insurance cost is $1,548
annually. That is a six-month policy of $774 or a monthly expense of $ 129. Besides, the auto
insurance premiums are several times higher than they would usually be in the United States due
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to the high risk of getting into a car accident while in San Jose. Therefore, I had no choice of
going for anything less than the full coverage because I have a loan on this new purchased. As
mentioned above, the whole insurance coverage is about $129 every month plus a car loan of
$1,725 is about $1,854 a month for covering my auto costs (i.e., insurance and loan only), not to
mention gasoline and regular maintenance. The charges take up around 32% percent of my total
salary.
From this, you can deduce that it offers fair discounts and quality insurance rates.
However, I did not choose State Farm due to its affordability, I chose it because I was more
familiar with the firm and am also more comfortable investing in it. I also am provided with
multi-policy discounts since I have both homeowner insurance and auto insurance. I have also
applied my house insurance with State Farm. In future, I will also look into the life insurance
program provided by State Farm when my retirement time comes.
Investments
I am so cognizant with investment, therefore am not a devoted day trader. Though, my
supervisor, a senior accountant, recommended the Robinhood app to me. The Robinhood is a
commission free investing mobile application where by one has to sign up to get his or her first
stock free of charge. Therefore, after signing up with this appl, I was given a fair share of the AK
steel company stock. On referring my friend from the university, I was given a free Zynga share.
Since then, I have invested $15 of my money at Robinhood app and bought shares in two other
firms namely Remark Holdings, Denbury, and Limelight Networks. The most interesting thing
about this application is that you get notifications on my stock’s performance daily, as well as
notify me how other stocks are performing. Currently, my aggregate investments in the five
companies I have invested in are $20.18. This is not a large investment increase, though it is
PERSONAL FINANCIAL PLAN
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great to see how the stock market is working without being compelled pay broker fees or get a
broker.
My supervisor also advised me to make equity investments. These are generally,
ownership shared in some firms. Most often, the stocks are the instrument. Thus, since this
would prove to be beneficial after my retirement, I decided that this would be a great investment
for me. The thumb rule states that the funds percent that must be made on equity investments is
100-one’s age. Therefore, since am 28-year-old, am compelled to invest I am compelled to invest
72% of my money in equity. This is also a great investment since it is known to have excellent
returns throughout the high inflation periods, despite its higher volatility.
I have also invested my cash in crypto currency, but I will generalize it as stocks because
of the complexities of this issue. Since stocks often differ in value on a regular basis, influenced
by emerging technology or developments in the fields in which they are based, prices can
fluctuate from lower to higher, depending on the change in their sector and the magnitude of the
change. The stock market is simply gambling, but gains can be made with adequate product
awareness and a firm understanding of the market. BitCoin (BTC), Litecoin (LTE), and
Ethereum (ETH) are the key currencies I hold stock in all with their own unique features and
values. Diversifying your assets is the secret to success in investing and that is what I do.
Monthly Budget
A monthly budget refers to the money, which goes in and out of a person’s fiscal
accounts throughout the month. With a monthly income of is $ 5, 695, my monthly budget can
only be obtained by highlighting my monthly expenditures like rent/mortgage, groceries,
transportation (i.e., gasoline), car and home insurance, phone credits, savings, internet/cable,
PERSONAL FINANCIAL PLAN
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entertainment, car loan, and health insurance. The table below summarizes the expenses of each
of the expenses highlighted above.
Expense Amount
Rent/Mortgage $1,350.00
Groceries/Food $350.00
Home Insurance $192.00
Car Insurance $129.00
Car Gas and Maintenance $105.00
Car Loan $1,725.00
Health Insurance $456.00
Phone Credits $7.93
Internet/Cable $85.00
Electricity $100.00
Entertainment $200.00
Savings $100.00
Total Income $5, 695.00
Total Monthly expenses $4,799.93
Discretionary $895.07
From the table above, you can see that I spend $1, 350 as my rent every month. Groceries
and food total to $350 while the home insurance, car insurance, and health insurance add up to
$777.00. The car expenses including the loan to be paid per month, gas, and maintenance add up
to $1,830 while the phone credits, electricity, savings and Internet/Cable add up to $492.93. This
PERSONAL FINANCIAL PLAN
gives a monthly expense of $4,799.93. From this, on subtracting the total monthly salary from
the total monthly expense, it is evident that the amount left after deducting all the monthly
expenses is $896 which I usually enroll into my savings accounts before the subsequent
paychecks.
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PERSONAL FINANCIAL PLAN
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References
Carrick Wealth. (2018). Financial Planning Picture [Image]. Retrieved from
https://www.biznews.com/sponsored/2018/08/28/entrepreneurs-personal-financialwealth-plan
Dayan, J. (2017). Setting Financial Goals: 4 Short Term Financial Goals. Retrieved from
https://www.communitytax.com/setting-financial-goals-4-short-term-financial-goals/
Long-term Goals | Long Term Goal Examples – Financial Goals. Retrieved from
https://financialengines.com/education-center/long-term-goals/
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