Henderson Financial Plan

4563 WordsMay 7, 201419 Pages
ALL STAR FINANCIAL PLANNING ALL STAR FINANCIAL PLANNING Personal Financial Plan for John & Mary Henderson Table of Contents Table of Contents Introduction……………………………………………………………………….……….3 Net Worth………………………………………………………………….………………4 Cash Flow………………………………………………………………………….………5 Financial Goals…………………………………………………………………….………6 Cash Flow Planning…………….…………………………………………………………7 Investment Vehicles………………………………………………………………...……..8 Current Investment Allocation………………………………………………………….10 Educational Planning……………………………………………………………………12 Asset Allocation…………………………………………………………………………..14 Retirement Planning………………………………………..……………………………17 Risk Management………………………………………………………………………..20 Long Term Care…show more content…
Cash Flow Planning will help you understand where your income is going and give you a better idea of your expenses. Your cash flow planning should be realistic and paint a clear picture. As seen earlier in your cash flow statement you have a surplus of $9,000 at the end of the year. This tells me that your family is doing a good job of being financially responsible. I have included a pie chart that breaks down your cash outflows. This pie chart will give you a better idea of where your money is going. As you can see from the pie chart you biggest sources of cash outflows are taxes and living expenses. While I think your family is doing well financially you could benefit greatly from reducing your everyday living expenses. Your family spends a significant amount of money on recreations, vacations, and other personal expenses. By cutting down on these expenses you would be able to invest more money into your children’s education expenses or your own retirements. Currently you are only investing 9% of your income into educational expenses and 6 percent of your income towards retirement. Investment Vehicles There is no one single financial product or philosophy that is right for every family. There are many different ways to obtain your financial goals. This section will discuss some of the different types of investment vehicles you can use to meet your financial goals. An investment vehicle refers to anything that a person
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