Finance Paper
Budget: $30 – $250 USD
Set the stage and describe the person whose finances you are examining. It can be fictional person or even yourself if you choose. Some attributes to include are: age, living situation, marital status, any children, education, job status, spending habits, financial accounts etc. Add more attributes as needed to complete the narrative about the individual and their financial situation and personality.
Calculate the following: current ratio, month’s living expense covered ratio, debt ratio, long-term debt coverage ratio, and savings ratio. How do your ratios compare with the average American of the person’s age?
Create a detailed Monthly Budget based on realistic income and expense figures based on the template given in the “Personal Finance Budgeting Spreadsheet” file in the "MyFinanceLab Registration and Other Information" area in the Course Content folder in Blackboard
Calculate their taxes due and don’t forget about credits, deductions etc.!
Assume they have a credit card. What type of card do they have and from what financial institution? What are the fees? Based on our knowledge what is the individual’s credit score? How does the score affect their finances?
Let’s say your selected individual has decided to save. Where have they put their liquid funds? Checking Accounts? Money Market Mutual Funds? Calculate the future value of a couple different investment using a financial calculator.
Assume they have built an investment portfolio. Based on the person’s situation, create an ideal portfolio asset allocation and why? Asset classes can include (domestic/foreign stocks/bonds, gold, cryptocurrencies, real estate, oil, art, venture capital, cash/cash equivalents, etc.)
What do you think the future holds for the economy and financial markets? How will this portfolio perform in the future given your economic forecast?
Conclude by summing up the finances of our selected individual and provide some advice for them. Where do they stand in the financial order compared to peers? What are some things they could do better? At what age could they expect to retire?
Calculate the following: current ratio, month’s living expense covered ratio, debt ratio, long-term debt coverage ratio, and savings ratio. How do your ratios compare with the average American of the person’s age?
Create a detailed Monthly Budget based on realistic income and expense figures based on the template given in the “Personal Finance Budgeting Spreadsheet” file in the "MyFinanceLab Registration and Other Information" area in the Course Content folder in Blackboard
Calculate their taxes due and don’t forget about credits, deductions etc.!
Assume they have a credit card. What type of card do they have and from what financial institution? What are the fees? Based on our knowledge what is the individual’s credit score? How does the score affect their finances?
Let’s say your selected individual has decided to save. Where have they put their liquid funds? Checking Accounts? Money Market Mutual Funds? Calculate the future value of a couple different investment using a financial calculator.
Assume they have built an investment portfolio. Based on the person’s situation, create an ideal portfolio asset allocation and why? Asset classes can include (domestic/foreign stocks/bonds, gold, cryptocurrencies, real estate, oil, art, venture capital, cash/cash equivalents, etc.)
What do you think the future holds for the economy and financial markets? How will this portfolio perform in the future given your economic forecast?
Conclude by summing up the finances of our selected individual and provide some advice for them. Where do they stand in the financial order compared to peers? What are some things they could do better? At what age could they expect to retire?