3 Goals for Your Capstone Assignment
Earn 200 of the 950 Points Needed for an “A”
Define and Describe the Essential Elements of a Financial Plan
Create a Capstone Report to Illustrate Your Financial Plan
The Capstone Report
The Essential Elements
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Watch The
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Review the Course Material Posted in Money Study Group
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Create Your Final Report and Upload in BB
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For each of the Essential Elements listed below, include the following:
— Include Screen Shots
— Tell me What Changes You Made, if any, Before and After each element.
— Address the specific questions listed next to each element.
Balance Sheet
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Assets
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Liabilities
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Net Worth
Budget
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Be sure to include your detailed budget in the screenshot.
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If you did not link your credit/debit card, explain why and be sure you’ve added the detailed budget items manually (25 points).
Debt and Debt Strategy
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Refer back to your Credit Crush Assignment if you need a refresher.
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Describe your Debt Payment Strategy.
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Tell me how you plan to use what you learned about Credit Cards (and debt in general) after you graduate.
Asset Allocation
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Tell me what you learned about Asset Allocation in this course.
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How did you apply this new information in your financial plan?
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What Asset Allocation will you use in your 401k after you graduate?
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How much did Asset Allocation change your Probability of Success?
Tax Allocation
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In general, what did you learn this semester about Tax Allocation? — What is Tax Allocation?
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How will you use what you learned about Tax Allocation after you graduate?
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Will you fund a Roth IRA?
Holdings
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Discuss the actual holdings you selected for your portfolio.
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Explain the difference between a holding and an asset class.
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Explain the difference between a holding and Type of Account.
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Explain the difference between a holding and Type of Investment.
Retirement Analysis
Which elements in a financial plan can “move the needle” the most in terms of Probability of Success?
Review Action Items
Cash Flows are Super Helpful
Cash Flow Summary Screen
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In reviewing your Cash Flow Summary Screen, was there anything you saw that would raise a question when I review it?
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Spend a few minutes trying to figure out how to answer the question I’m going to ask about your Cash Flow Summary.
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If it all looks great, move on to the next screen.
Net Worth
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In reviewing your Net Worth Summary Screen, was there anything you saw that would raise a question when I review it?
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Spend a few minutes trying to figure out how to answer the question I’m going to ask about your Net WorthSummary.
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If it all looks great, move on to the next screen.
Invested Assets
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In reviewing your Invested Assets Summary Screen, was there anything you saw that would raise a question when I review it?
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Spend a few minutes trying to figure out how to answer the question I’m going to ask about your Invested Assets Summary.
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If it all looks great, move on to the next screen.
Accounts
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In reviewing your Accounts Summary Screen, was there anything you saw that would raise a question when I review it?
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Spend a few minutes trying to figure out how to answer the question I’m going to ask about your Accounts Summary.
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If it all looks great, move on to the next screen.
Insurance
In each of the insurance categories listed below, briefly explain…
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What insurance did you add to your plan and why?
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After you graduate, what insurance should you add to your plan and why?
Life
Disability
Property and Casualty
Long-Term Care
Profile Review
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Take a few minutes to review your overall plan profile and comment as outlined below for each screen.
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Don’t worry, you won’t be graded on your comments — but each screen needs to be included in your Capstone Report!!
Net Worth
What accounts, loans, or insurance would you add to your plan in real life? Remember, this is an important part of your planning portal.
Goals
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Do you feel like you have a good set of goals?
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What goals would you add in real life after you graduate?
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What goals did you want to include if money were no object?
Income
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Did you include income from your “Dream Job”?
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If your income is too high or too low, please tell me why.
Savings
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What do you think about your overall savings plan?
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Is it realistic?
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What might you change in real life once you start working full-time?
Expenses
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What do you think about the expenses listed in your plan?
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Are they realistic?
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What might you change in your budget in real life once you start working full- time?
Family
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Tell me about your family in the future.
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Would it be helpful to have a financial plan in real life once you start your family?
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Discuss the challenges and opportunities that come with having a financial plan.
Final Element: Capstone (Class Collaboration Element)
How much money is left in your plan?
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Be sure to review: Probability of Success too Low or Excessive Money Left at End of Plan
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Do you have Excessive Money in your plan?
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You should have somewhere between $100,000 and $3,000,000 at the end of your plan, depending on your salary, savings, and goals
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If you have over $5,000,000 you need to take a closer look at your plan: Expenses, Income, Investments
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50 POINT Deduction if you don’t explain Excess Money in your plan.
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Class Collaboration Screenshot is needed!
Capstone Mistakes and Deductions
Too Much Money in Your Ending Plan = 50 Point Deduction
As we head into the final days of our course in Personal Finance, I wanted to give you the opportunity to get a little help to insure that you are able to maximize your 200 point Capstone Assignment. So, if you’re feeling a little confused about how to “move the needle” in your Retirment Analysis, or if the ending value of your plan is say $35,000,000, this post is for you.
