PERSONAL FINANCE Essay Example | Topics and Well Written Essays - 2000 words

PERSONAL FINANCE - Essay compositors caseThe two children attend a nearby secondary school and likely to attend university. As a imagener, I entrust ensure that the advice give to the Jameson family is suitable to the financial circumstances, and side of the family and the financial plan entrust match their level of financial literacy. This paper will produce a comprehensive financial plan for the Jameson family under the following headwayings 1. Current financial situation Before setting goals and strategies, it is important for the Jameson Family to determine its menses financial standing. Determining the topical financial position is the first step in the creation of a personal financial plan (Gitman and Joehnk, 2008). Having a thorough understanding of ones current financial position will help in the formulation of well informed and realistic goals. Therefore, the Jameson will need to determine the familys current utmost worth by getting the total of their current liabili ties less the total current assets. The following charts will be used in the calculation of the net worth of the Jameson Family- it is simply a family balance sheet for the Jameson Family. ... wner Value Cash expenditure enounce $80,000 Insurance premiums Phillip Belinda 1,546.48 478 Total current Bills 82,024.48 enceinte Debt Owner Value Mortgage loan Joint 100,000 Personal loan Belinda 17,000 Credit Card Joint 5,000 Total outstanding debt 122,000 Total liabilities 204,024.48 Net worth of the Jameson Family Total assets less the Total liabilities= 1,312,641- 204,024.48= $1,108,616.52 A net worth of $1,108,616.52 for the Jameson family is an indication of a better financial position for the couple/family. The clients situation Broad category Age Group (years) Characteristics Middle age 45-55 Children usually leave home or attend tertiary education. Level of income increases. Superannuation, debt reduction, asset accumulation and risk management would be important in this stage. 2. Objectives Setting financial objectives and goals is the second step in the preparation of a personal finance. Setting of goals or objectives will give the couple a direction for their plan as well the destination toward which they should head (Gitman and Joehnk, 2008). Some of the obvious objectives include monthly savings and retirement investments. The goal should be very smart, measurable, realistic, eon based, attainable and specific. The objectives of the Jameson Family will be categorised as short term, long term or plane intermediate. The development of these objectives will allow the family to achieve successes early in the plan while keeping their nub towards the future (Koh, 2012). It is also quite important for the family to establish its priorities, consider its net worth in place to make realistic objectives which align with their financial situation (Melicher and Norton, 2011). The objectives or goals should be stated as dollar mark amount against its future date or