Financial Plan for Derek Morton

April 11, 2018

Age 22

Net Income: $14,040/year (reference exhibit A Income Statement on page 2)

Net Worth: $5,413 (reference exhibit B Balance Sheet on page 3)

Monthly Savings: $0/month (reference exhibit A Income Statement on page 3)

Investor Profile: Balanced (reference exhibit C Investor Profile Questionnaire on page 4)

Credit Score: 710

Tax Bracket: 15%

Emergency Savings: $2,000 Discover Online Bank

Life Insurance: $202.50 20 Year Term Policy Protective

Savings Goals:

#1 Graduating Debt Free:

Goal Amount $20,000
Start Date: November 27, 2017
Target End Date: November 27, 2022
Time: 5 years
Monthly Investment: $330
Investment: Discover Online Bank
Anticipated Annual Return: 1.15%

#2 Rent an Apartment:
Goal Amount: $3,000
Savings Start Date: November 27, 2017
Targeted End Date: November 27, 2019
Time: 2 years
Monthly Investment: $85
Investment: FSICX Fidelity Strategic Income
Anticipated Annual Return: 4%

#3 Retirement:
Goal Amount: $1.0MM
Start Date: November 27, 2017
Targeted End Date: November 1, 2077
Time: 60 years
Monthly Investment: $180
Investment: T Rowe Price Target Date 2060
Anticipated Annual Return: 9%

1
 Income Statement
Derek Morton
12 April, 2018

Income Monthly Annual

Job 1 1280 15360
Parental Support 100 1200
Interest 0 0
Investments 0 0
Rental 0 0
Alimony 0 0
Child Support 0 0
Scholarships 0 0
Total Income 1380 16560

Expenses Monthly Annual

Taxes 0 0
Car Payment 130 1560
Phone payment 45 540
Gas 120 1440
Food 90 1080
Rent 0 0
Student Loans 0 0
Total Expenses 385 4620

Net Income 1170 14040

2
 Balance Sheet
Derek Morton
12 April, 2018

Assets
Home 0
Car 5000
Savings Account 0
Investments 0
Furniture 1000
Retirement 0
Total Assets 6000

Liabilities
Mortgage
Car Loan 130
Student Loan 457
Credit Card 0
Other debit 0
Total Liabilities 587

Net Assets 5413

3
 Investor Profile Questionnaire

A.) 1. One can’t be too careful.

2. When in doubt, err on the side of caution.
3. Nothing ventured, nothing gained.

B.) 1. Put safety first, stick with risk free investments.

2. Don’t put all your eggs in a few baskets, diversification is important.
3. Put most of your money in your best investment ideas.

C.) 1. Receiving dependable income is more important than growth.

2. Income and growth are equally important.
3. Growth is more important than current income.

D.) 1. I prefer conservative investments.

2. I like to have a mix of conservative and growth oriented investments.
3. I want growth and am willing to risk significant capital to achieve it.

E.) A respected friend suggests the time is right to invest aggressively, you
1. Refuse to take more risk.
2. Invest a portion of your savings.
3. Invest all your savings.

F.) You win a contest and can choose among three prizes, which do you select?
1. Receive $5000 today.
2. Receive $2000/year for 5 years.
3. Receive $25,000 10 years from now.

G.) An emergency requires $10,000 unexpectedly, you

1. Have to liquidate all your investments.
2. Have to liquidate 25% of your investments.
3.Could handle it without liquidating any of your investments.

H.) The stock market is dropping in value, you would sell your investments after
1. A 10% drop in value.
2. A 20% drop in value.
3. I would not sell in a down market.

Total Score: Balanced 18-21