Personal Finance 1 SUMMARY

Personal Finance 1 SUMMARY - Instructions Write an overall...

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Instructions financial goals as well as your existing financial resources and obligations. Comment about any financial risks you anticipate and risk management techniques you might consider to address them. Finally, discuss your savings and investment goals and how they coincide with your lifestyle and retirement goals. It is highly recommended that you compose your summary using a word processing program and then copy and paste your summary in the shaded area below (cell A9). Use the "Word Count" calculator on the right to verify the number of words in your summary. Though many of the scenarios in this financial plan were fabricated, I tried to be as realistic as possible for what my situation could potentially be coming out of college. Throughout this class I learned so many valuable lessons and I have even decided to keep the textbook because so many things taught will be useful in the future. One of the most important things I learned in this course is to plan and the time value of money. In the long run I realize how important it is to plan for retirement and that if I start now even with baby steps, the interest on my investment will grow dramatically in 50 or even 40 years. For example, I have set a goal to invest 1.5 million dollars over the next 40 years (once I get a job of course), if in the future me and my spouse contribute $37,500 at lets say 8% interest; we’ll have $9,714,619 for retirement. I definitely think that is more than enough to live off of and enjoy the older years of my life financially stable and able to do the things I want, like travel. This is definitely on the high-end of what I would probably even need, once I actually find out how much I am making I may have to adjust this. But if were each making around $80,000, combined at $160,000, and $38,000 less after taxes, I think it would be very doable to contribute $37,500 a year. Some things that will help me in this is to avoid procrastinating and just make saving automatic by taking the money straight out of my paycheck into my savings account. Also I will need to work hard on controlling my spending, like the book says, “Just because you earn it, doesn’t mean you have to spend it”. I also learned how important it is to live within your means. The state of our economy and this recession is all
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Personal Finance 1 SUMMARY - Instructions Write an overall...

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