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Creating A Financial Plan
Creating A Financial Plan
Creating A Financial Plan
1. Build Reserve Fund a. Goal 1: Savings for Unemployment b. Goal 2: Savings for Medical Deductible c. Goal 3: Savings for Home repair d. Goal 4: Savings for Travel
2. Commit to take Crown Financial Study and finish Morningstars free online Mutual Fund Education course at http://news.morningstar.com/classroom2/home.asp? colId=76&CN=COM
3. Start Future Funds a. Goal 1: Start IRAs b. Goal 2: Start Mortgage pay-off c. Goal 3: Start Activities fund d. Goal 4: Start Car replacement e. Goal 5: Start Childrens education funds
Medical:
Home Repair:
(Note: Have 1% of home value saved, plus hurricane and property insurance deductibles)
Travel:
(Note: Figure to have about $300 per family member saved up, for emergency travel trips)
Unemployment:
Car Repair:
$1,500
Total Goal:
Investment Plan for RESERVE FUNDS: (Vanguard.com) Short Term Inv Grade (Risk 1): $6,000
Future Funds (all figures based at 7% interest) Old Age IRA: $ /mth
Activities Fund:
$ /mth
(Note: To cover vacations, boat, car replacement, and kids activities when older)
Next Car:
$ /mth
(Note: Formula is for a monthly payment to save on: # of months till buy a car divided by how much want to spend)
College Savings:
$ /mth
(Note: Use a 529 Plan, how must estimate need for children to go to college)
Missional Fund:
$25-50/mth
(Note: Start with $500, plan to turn it over to your children when old and grey)
Total Goal:
Investment Plan for Future Funds: Short Term Inv Grade (Risk 1): $6,000
Windfall Plan (for any money gifts we receive) 60% 20% 10% 10% - Savings - Car Replacement - Charitable Giving - Enjoyment
(Note: Other ideas could be Additional Principle, Home Improvement Project, Education, etc)