The final project for this course requires the creation of a completed personal financial plan, incorporating analyses completed in prior modules and detailing your short- and long-range financial goals. The final step in developing the complete plan is to identify an investment portfolio of five stocks that captures your preference for risk and return. Based on return provided by this investment alternative and the number of years you currently have until retirement, you will determine the amount of savings required per year to fulfill your financial needs. The identification of any gaps between your needs and the current maximum you are able to presently devote to savings will provide you with the opportunity to mitigate inevitable challenges that result when financial needs are not met. You may then develop strategies and take steps such as enhancing your education and career path to increase earnings and realize cherished personal financial objectives.WORKSHEETS THAT MUST BE INCLUDED IN THE FINAL SUBMISSION ARE (I’ve starred/“*” the worksheets you need to complete)Worksheet 1: Personal Financial Goals WorksheetWorksheet 2: Financial Objectives WorksheetWorksheet 4: Balance Sheet WorksheetWorksheet 5: Simplified Income Statement Worksheet*Worksheet 11: Worksheet for Calculating the Maximum Monthly Mortgage Loan for Which You QualifyWorksheet 9: Worksheet for the Lease Versus Purchase Decision*Worksheet 16: Worksheet for Funding Your Retirement Needs — The Worksheet for Funding Your Retirement Needs entails planning for retirement. You will likely identify a gap between your personal financial goals for a home, vehicle, and retirement planning versus the availability of your present resources. The objective is to develop an investment strategy, as a suggestion, with stocks of your choosing and/or mutual funds, which support your future financial needs*Worksheet 20: Your Personal Financial Goals Worksheet (revised from worksheet 1) – In this worksheet, you will need to revise the original personal financial plan to better suit my needs (reflecting the cumulative learning in the course. Summarize and describe your intentions. Mention each spreadsheet, specifically, and indicate how the purchase of these new assets and investments will affect your prior plan (from Worksheet 1). Describe your opportunities and challenges. Will you have to make changes? Indicate how you might revise your plans.*Stock Portfolio Analysis: In an Excel spreadsheet, detail the returns on five selected stocks that you will use as the basis for creating wealth required to support your personal financial initiatives. Select five key stocks and determine their expected return from finance.yahoo.com. Presume you would invest 20% equally in these stocks and average the return. Calculate how much you would have to deposit each year until retirement to fund all of your initiatives assuming the rate of return on these equities is constant. Describe your rationale for selecting the stocks in your portfolio, including your own risk tolerance and any considerations for diversification. Complete a calculation of the annual amount required to support any gap between your present wealth and your future need, using the return derived from your portfolio as the realized return. This amount will be represented by an annual annuity funded by your savings drawn from your present income; assume that salary increases will be exactly offset by inflation and thus, your present salary will be static. (Recall that if you currently have automatic deposits to a 401(k), these will be redirected to the portfolio you have developed.) Determine whether you are able to deposit enough to fund all of your financial goals according to your calculations. Document this amount in a composition describing your findings. If there are any gaps in the total amount you are able to realize based on your current income, develop and document a plan to support the difference. Various alternatives may include finding another career position and increasing income, or purchasing a smaller home, curtailing retirement funds, or deriving savings elsewhere.The final submission should be 10–12 pages in length, encompassing all worksheets, plus the Stock Portfolio Analysis.The total submission therefore includes: the eight completed spreadsheets, retirement planning and funding of your needs through investments in mutual funds or equities, plus two to four pages of commentary for the qualitative review and observations of your plan. There should be an additional page that includes discipline-appropriate citations.In order to measure the amount required to fund a future mortgage, vehicle purchase, and retirement plan, the net present value of these amounts will have to be summarized. You will then need to take account of your present net assets from your Balance Sheet Worksheet; include the values of any retirement accounts you presently have, such as a 401(k). (For this exercise, presume that the amount in this savings plan will be static, and that you will draw all future needs from an investment portfolio that will be developed based on your risk preference.) This will allow you to determine the gap between your present wealth and your future needs.
