PLAN 363 Financial Plan Part 3 PDF

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PLAN 363 Financial Plan Part 3...

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I.

Investment A. I believe that investing your money is a very smart move to ensure that your wealth continues to accumulate as you grow older and work. With investing, you are able to use money to get more money- this is a large distinction from labor because investing takes much less time and can sometimes have higher benefits. Investing is also smart because you are using your money to get higher returns, even more than leaving it in a savings account. B. Investment Plan and Strategies 1. I plan to invest in short term investments and long term investments. In the short term, I will invest to grow money so that I can afford things such as family vacations or luxuries. In the long term, I will invest for retirement and my children’s education. I plan to invest through different accounts such as Roth IRAs and 401ks. 2. Another strategy I will use to invest is through real estate. Real estate does not require much upkeep, so I would consider it as passive income. This is a great way to hold a profitable asset and make money off of it each month. 3. The main strategy I have is to diversify my investments so that all of my money is not in one thing. This will ensure that my portfolio is safe from sudden changes within a single investment.

II.

Retirement A. Retirement is a very important goal for me, as I do not want to work for the rest of my life. My investment strategy for retirement is to diversify my portfolio as this

will be money that I will need to sustain me when I am no longer working. B. Ways I Will Prepare for Retirement 1. Set goals that I will stick to and follow, especially saving money every month. If I start this habit young, I will be able to follow it through my career. 2. I know that Retirement is expensive, as experts estimate that you need 70 to 90 percent of your pre retirement income to maintain your standard of living when you stop working. I want to be able to live comfortably when I retire, so saving as much as possible is very important to me. 3. I will contribute as much as I can to my employer’s 401k because much of the time, these contributions are matched by the employer. This is a win win scenario in my mind. 4. I plan to make smart investments with my retirement money, not ones that are risky. This is very important because this money matters and should not be played with. III.

Estate Planning A. Estate planning is very important, so that when I am gone I can leave my family my wealth and assets. When it is time to plan my estate, I will follow a checklist to ensure that I do not miss anything important that cannot be remedied when I am dead. B. Checklist 1. Inventory my Tangible and Intangible Assets a) The tangible assets in an estate may include:

(1) Homes, land or other real estate (2) Vehicles including cars, motorcycles or boats (3) Collectibles such as coins, art, antiques or trading cards (4) Other personal possessions b) The intangible assets in an estate may include: (1) Checking and savings accounts and certificates of deposit (2) Stocks, bonds and mutual funds (3) Life insurance policies (4) Retirement plans such as workplace 401(k) plans and individual retirement accounts (5) Health savings accounts (6) Ownership in a business 2. Account for my Family’s Needs a) Ensure I have suitable life insurance b) Name a guardian for my children 3. Establish Directives a) Trusts b) Power of Attorney 4. Review my Beneficiaries C. These are a few of the things I would do when I plan my estate. I feel that this is a solid list, but I will always be willing to reevaluate as the only things constant in life is change....