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Personal Financial Portfolio

Sonia Saitawdekar

December 11, 2022

FIN 205 A

Jennifer Graves
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Table of Contents

Section 1: Set Your Goals 3

Financial Beliefs 3
Financial Values 5
Financial Goals 6

Section 2: Assess Your Financial Health 9

Income and Expense Tracking 9
Budget (spreadsheet) Tab 1
Net Worth (spreadsheet) Tab 2
Building Credit Plan 11
Emergency Savings Plan 13
Reducing Debt Plan 14
Financial Health Reflection 15

Section 3: Plan to Achieve Medium-Term Goals 19

Home Purchase Plan 19

Section 4: Plan for Difficult Life Events 21

Insurance Plan 21
Will 25

Section 5: Plan to Achieve Retirement 29

Retirement Budget (spreadsheet) Tab 3
Investing for Retirement Plan 29
Retirement Reflection 30
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Section 1: Set Your Goals

Financial Beliefs

The first financial belief I chose is “Money may improve happiness but is not the only factor.” I grew up in a

financially stable family, so I never had to worry about money. I never had to debate spending money to buy food or

items I needed or wanted. However, this means that I recognized that having money does not mean you are always

happy. In my childhood, I struggled with low self-confidence and an absent social life. Sure, at the end of the day, even if I

have other struggles in life, I am happy with my situation - but that happiness might come more from being grateful for

what I have rather than feeling truly content with my life. One way that this could positively impact my life is not being

hyper-fixated on money. When making financial decisions about my career or lifestyle, I would consider factors other

than money like my own interest in the subject. For example, I know that certain fields of computer science lead to jobs

with higher salaries, such as machine learning. However, I know that I would not enjoy that type of job as much as one

related to web development. I am willing to sacrifice that higher salary for a slightly lesser one if it means that I would

enjoy the experience much more. A negative impact could be the fine line between valuing money a proper amount

versus too less. I could start weighing other factors too heavily and run into money shortages in the future or could value

short-term gratification over long-term investments. Although I believe that money is not everything, I still understand its

importance and hope to plan accordingly.

The next financial belief is “Money should be stored in places where it can grow.” My dad taught and encouraged

various money tips such as investing in stocks or contributing to a Roth IRA account. Although I tried to avoid thinking

about these slightly-overwhelming options, I do understand their importance. Thinking about this early on can have a

positive effect since many of these options require time and effort to show results. This will make sure that my money is

always growing rather than staying the same or diminishing in value. Keeping money in the wrong spot means you might

miss out on opportunities or become a victim to inflation or high taxes. However, it is important to note the possible

downsides. Investing money in certain ways can be high risk. It is important to be careful and make informed choices
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about where you put your money and how much you put in each location. Placing money in more locations is also more

complicated and requires more thought, time, and effort.

The last financial belief is “Spend as less money as possible as long as you are content with the quality.” Although

my family did not have financial struggles during my childhood, my parents were still very money conscious. My mom

always prided herself in buying items at low costs. We would always shop in the clearance section at clothing stores and

pick up non-seasonal sale items for future use. I have never been interested in brands as long as I like the clothes I am

buying or the items serve their purpose in a satisfactory way. The positive benefit of this is saving a lot of money in the

long run by saving a little bit during each purchase. However, negative impacts include missing out on opportunities due

to an aversion to higher prices. For example, I might keep avoiding or delaying buying something I want since I am not

satisfied with the price. I might also waste time and money on something low quality when it would have been a better

choice to spend a little more on the longer-lasting product. There is a difference between being smart and stingy, but it is

something that can be learned overtime.

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Financial Values

Peace of mind

When there is a problem or task in my life, I tend to either ignore it completely or constantly think and stress about it.

Having a peace of mind about money is important to keep the anxiety out of the way. In my late 20’s, I imagine myself to

know exactly where my money is stored and why it is stored in those places. I would like to plan for any future expenses

and to know exactly how much money is coming in and out of my life so I can adhere to a budget. Ideally, I would track

and update these things in spreadsheets. I enjoy staying organized, but in the past I tended to procrastinate and

eventually give up on these sorts of things. For financials, I hope I can stay consistent to achieve that peace of mind.

Connecting with others

In high school, I did not have a large social life and mostly kept to myself. However, over the past 3 years in college I have

learned the benefits of connecting with the people around you. In my late 20’s, I imagine myself with the financial

stability needed to participate in activities with friends and family, since sharing experiences is the best way to grow

closer to people. Activities I enjoy often involve money for things like ticket fees or food costs. I would also want to have

enough money to donate money to loved ones or organizations and would need to factor these costs into my budget. A

strong social support system is important to maintain mental health, so my spending should reflect this goal.

Flexibility

As we all know, hardships can appear anytime and without warning. In these situations, there are already plenty of

things to stress about, so money should not be an added problem. In my late 20’s, I hope to incorporate savings and

investments into my budget so an unexpected expense is not detrimental to my spending and lifestyle. I have no desire

to lose anything that I have worked hard to gain, such as a job, property, belongings, or reputation as a result of a

financial inconvenience. I also would appreciate the flexibility to opt into spontaneous opportunities. For example, if my

friends suggest a weekend trip, I want to be able to participate. Similarly, if concert tickets are suddenly temporarily

available, I would want the ability to buy them. My budget should have the flexibility to plan for these potential costs.
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Financial Goals

Short Term

● By the end of fall quarter, sign an offer for a new-grad industry job in the Seattle area with around a 120k salary.

○ As a computer science major, our job recruitment season for the following year typically concludes by

the end of fall quarter. Starting with a 6-figure salary in this field is common and is the average among

my peers, which is why it is an attainable goal. This relates to the values of connecting with others (most

of my friends would likely live in Seattle, and although I will make new connections wherever I go, my

goal is to live near people I already know) and having peace of mind (having a job in place with a salary

that can support a lifestyle in Seattle).

● Before the beginning of my new-grad job next fall, create a monthly budget for fixed and variable expenses based on

my expected salary of around 120k.

○ I have had the luxury of having my parents pay for my purchases thus far, but I know that that cannot

continue in the future. Once I have a job I want to properly track my spending and create a budget that

gives me the flexibility that I value. Creating the budget will also include setting apart funds that can be

used for costs needed to connect with friends and family, which is another one of my values.

● Within the next 3 months, start tracking my monthly finances (inflows and outflows) in a spreadsheet and update the

data at the end of every month.

○ I had previously attempted to track my spending, but it was difficult to figure out how to organize and

update the data. With the knowledge I gain from this class, I want to gain an understanding of my

finances to fulfill my value of having some peace of mind.

Medium Term

● Create an emergency fund of 60k by September 2033 by contributing $500 a month towards a savings account after

starting my new-grad job next fall.

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○ This is important because you never know what situation might arise where a large sum of money is

needed, so it is always important to be prepared. For example, I could have unexpected health care costs

for myself or a family member due to an accident or unanticipated health problems. This relates to the

value of having some flexibility with my budget and not needing to worry about “what if” situations.

● By 2033, after having some time to explore my interests, have a source of passive income based on one of those

interests that can bring in at least $100 a month.

○ Having a passive income is a great idea because it brings in money without constant effort. There are

multiple options for this that I am interested in and can pick from once I have more time to explore

them. Examples include writing an app, creating youtube videos, or selling some sort of online resource.

Having this extra source of money improves the value of having flexibility in my budget due to a surplus

of income.

● For the next 10 years, set aside a travel fund of $3000 a year to explore the world with friends and family.

○ We all know that eventually people end up marrying and having kids and at that point it is harder to plan

vacations. That is why I want to explore as much as I can in my 20s just in case it becomes more difficult

later on. This can mean both traveling internationally or planning local trips. Doing this with friends and

family also means I am able to satisfy my value of connecting with others while having shared

experiences.

Long Term

● Have a strong retirement fund by the time I am 60 by contributing 10% of my annual income to my 401k plan once I

have a job.

○ I have always heard that you should start contributing to your 401k as soon as possible to maximize your

retirement savings. There will always come a time when you want to stop working and start enjoying the
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reminder of your life, so it is important to prepare in advance to avoid needing to work a job for longer

than you want. This planning will give me some peace of mind about my finances and future expenses.

● Assuming I eventually have kids, when my first child is born, set up a college fund for them and contribute $5500 a

year so they end up with nearly $100k by the time they are 18 and ready for college.

○ College can be very expensive and student loans are known to haunt people for years. It is important to

plan for college and save money ahead of time to try to avoid the need to get a loan. Knowing that this

money is already set aside supports my value of having some peace of mind about future expenses.

● Once I am in a stable place in life and until retirement (approximately 30-60 years old), donate $500 a year to an

organization with a cause that is meaningful to me.

○ I have always appreciated the action of giving back to communities that you were previously a part of or

that you care about, whether it is through the act of volunteering or through a financial donation. If the

cause is meaningful to me it probably affects my friends or family in some way, so this action will help

me connect with the people in my life, which is something that I value.

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Section 2: Assess Your Financial Health

Income and Expense Tracking

Expenses from Oct 10-17:

Restaurants - Lunch 11.52

Restaurants - Dinner 23.41

Boba 15.18

Tea 6.61

Fruits 16.49

Vegetables 17.31

Snacks 21.20

Kitchenware 25.25

UW Food Services 9.82

Ready-to-eat meals 10.50

Furniture 13.60

Gifts 4.99

Cleaning Products 24.34

Decor 6.20

I used a spreadsheet to track the data. I would use this method in the future because it is easy to calculate values

as well as design your own system of tracking expenses based on your needs. I liked how easy it was to input values and

make calculations. However, it does take more effort to set up the spreadsheet myself. I didn’t like how I couldn’t see

exactly where the money was coming from for each category, I feel like it could be helpful to have one page with every
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expense listed and one page with the totals for categories. It could also be helpful to create a graph of the categories to

better visualize the data.

I would rate this task a 6. It was not super difficult, but it did take time and effort. The easiest part was inputting

values and making calculations. The hardest part was deciding how to set up the spreadsheet and actually setting it up.

Tracking your income and expenses is important for various reasons. First, so you understand how much money

you are spending. It is important to know the fixed and variable expenses in your life so you know what categories you

can reduce to increase savings or in an emergency situation. Second, you can use what you know about your income and

expenses to create a budget for yourself. A budget is helpful to control your spending and ensure you are in a surplus so

you can figure out how much to contribute to savings and investments (should be at least 12% of your income as per the

savings ratio). Thirdly, tracking the data helps you understand your financial health. Knowing where your money is

coming from and where it is going means you are better informed to make financial goals and live up to your financial

values.
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Building Credit Plan

1. Identify and discuss three things you learned from the class preparation materials that you didn't know before.

I knew that payment history and length of credit were a part of a credit score, but I did not know that amount of credit,

new credit, and types of credit were also factors. It is very insightful to learn about this since they are extra things that I

should be paying attention to. So far, when it comes to credit all I have focused on is making sure to pay off my credit

card on time every month. Another thing I learned is that secured credit cards were an opinion for people who are

getting credit cards for the first time. Before this, I had only known that co-signing was an option. However, the secured

credit card makes a lot of sense, especially for people that might not have someone willing to cosign for them. The third

thing I learned is that there is interest for credit card balances you don’t pay on time. I had known that you are supposed

to pay the balance on time so that is what I have always done. It totally makes sense to have interest, but I had no idea

that that was how it worked since I have never experienced it.

2. How do you anticipate using the credit information you learned (each item in question 1 above) in the future?

Because of the first point, I will try to use <10% of the credit limit, ask for a credit limit increase if possible, keep checking

my credit score, avoid applying for multiple loans at the same time, and consider getting different types of credit if

needed in the future. The second point about the secured credit card is not as applicable to me since I’ve already gotten

my first credit card and I know that my parents would always be willing to cosign. However, I will make sure to share this

information with others and always keep it in the back of my mind. For the last point, in order to avoid interest I will try

to never miss a credit card payment. But if I do, I will make sure to pay it back as soon as I can.

3. A friend comes to you with questions about their credit. Based on the reading, what advice would you give them?

(Come up with a question and an explanation based on the class preparation materials.)

Question:
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My parents don’t have a good credit score and I don’t have any credit history. How can I start building my credit and

make sure to keep it high?

Explanation:

The best way to start building credit is getting a credit card. Since your parents don’t have good credit, they likely won’t

be able to be cosigners for the card, so instead you should get a secured credit card. All you would need to do is deposit

the full amount of the line of credit at the bank as collateral. After a couple months of staying within the limit and paying

it off on time, the bank will refund your deposit and transform the card into a normal credit card. Also, some other tips to

remember to help get a better credit score is to try to spend below 10% of your credit limit (at least below 30% if that is

too difficult), always fully pay off your credit card balance every month to avoid interest, and don’t apply for more credit

cards as a way to spend more money since it will negatively affect the new credit category of your credit score.
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Emergency Savings Plan

Step 1: Save $1,000 in cash

I do have $1000 that I could save.

Step 2: Expand your emergency fund to eventually cover 3-6 months of expenses

My fully funded emergency fund should have $7000 in 1 year. This is possible by starting with $1000 and contributing

$500 every month. My estimated expenses in my budget for 1 year after graduating are $ $79325, so $7000 should cover

a little over 1 month of expenses. After another 2 years of saving, it will cover 3 months of expenses, and after another

3.5 years it will cover 6 months. This is a satisfactory plan since I don’t have any high risks in my life in the near future and

my parents have the means to support me if needed.

Step 3: Store your savings where you can get it quickly

Emergency savings should be stored in a location that can be quickly accessed (very liquid). There also should not be

much risk in the type of account so you can depend on the funds. A savings account would probably be the best option

to maximize liquidity. However, once a good chunk of money is safely stored in that account, $30000 for example

(estimated 5-6 months of expenses), any additional savings could be put into CDs to try to grow their value. CDs are less

liquid since they are inaccessible for some fixed amount of time (if you want to avoid fees), but they have a higher

interest rate than savings accounts.

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Reducing Debt Plan

Debt name Value of debt Interest rate Minimum Pay-off date with Pay-off date with

post- minimums(can 50% higher

payment
graduation list in # of payments (can list

months) in # of months)

Student loan 100000 5% 800 177 103

Credit card 8000 22% 400 26 16

Car loan 4000 8% 120 38 25

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Financial Health Reflection

After reviewing my portfolio, I realized that I am glad I took this class because I never would have learned or

considered the different aspects of my financial health on my own. It always felt so overwhelming to think about so I

tended to just push it off. I knew it was important but I convinced myself that it was a future problem - however, as we

have learned, it is crucial to start saving and investing as early as possible. Overall, I feel like my financial health is in a

good place. I believe my post-grad budget is pretty strong and it gives me a lot of confidence about my finances next year

(I’m graduating this spring and starting a full-time job in the fall). I listed all my predicted expenses but I know that there

will likely be other miscellaneous ones I haven’t considered; however, I currently have a surplus in the budget so that

should hopefully cover any additional costs. My current net worth is also looking pretty strong, so I am not too worried

about that either. I don’t plan to make any big purchases in the near future so I probably won’t need to add liabilities to

the list (from loans), but do plan to grow my assets as I start earning money and living a more independent lifestyle. My

main concern for my financial health is actually following through with all this planning (sticking to a budget, investing for

retirement, building credit, etc). Although planning is the hard part, carrying out these partly-abstract plans seem equally

time consuming, especially when there are accounts to set up or different options to research. However, knowing my

personal disposition, I know that my need for organization and habit of overthinking will motivate me to eventually fulfill

(or at least tangentially fulfill) the financial decisions that I have planned out. My low-risk tolerance and availability of

family backup will make sure that I do not overspend my money and do not accidentally fall into a bad financial state.

My three financial values were peace of mind (not having to stress about finances), connecting with others

(budgeting for activities with family and friends), and flexibility (adaptability for last minute expenses). My spending

habits do reflect these values. For example, the presence of a planned budget as well as my planned retirement and

emergency savings contributions will help me de-stress about my finances as well as indicate any surplus that could be

useful in unexpected situations. Also, my budget and expense tracking reveal that I spend (or plan to spend) a good

chunk of money on travel- or food-related costs that align with visiting or spending time with friends and family. I also

have a planned travel fund in my budget to prepare for fulfilling one of my SMART goals related to traveling the world
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with friends and family to strengthen my relationships with them. Even before my one year post-grad budget comes into

effect, I am already planning to spend money on weekend and multi-week trips with friends and roommates in the next

year. I know that although it may seem expensive, as long as we are mindful about our choices it is a rare opportunity to

spend time with them before we separate for our respective post-grad plans, so it is definitely worth it. As I grow more

financially stable and experience the outcome of my spending habits, I will learn the most effective ways to fulfill my

values. For example, although I understand the appeal of hosting events through experiences with my family and friends,

I might learn that it is too stressful for an indecisive person like me to plan those types of things. It might fulfill my value

of connecting with others but might also stray from my own peace of mind by causing stress and motivating avoidance

tactics. Therefore, I might choose to reduce my budget for hosting and put that towards other types of bonding

opportunities. Furthermore, as I test the waters of investing, I might learn the strategies that work best for me and could

choose to increase my retirement budget category, or add new categories related to things like stocks or real estate, to

account for those new opportunities and increase my peace of mind about my finances and chosen financial options.

In the first year after graduating, I predict that the restaurant, drinks, and Uber/Lyft categories could be the most

challenging. This is because having to adjust to a post-grad lifestyle will be difficult. There will be many new things to

worry about so I predict that I might lean towards eating out rather than cooking since it would be the easier choice.

Cooking requires lots of planning in advance and based on my college experience I know that I often have trouble finding

time to do that. Drink expenses could also be high because my job will be remote so I might get bored sitting at home

and might prefer to work at various coffee or boba shops to feel more motivated (like I currently do in college when I

have a large amount of homework or studying to do). Finally, the budget for Uber/Lyft (along with the restaurants and

drinks) category could be difficult to meet because I know that next year my friends from college will live further away

from me and I might have to travel more and plan more food-related activities in order to visit and hang out with them.

However, to help achieve my budget, I just need to make sure to be more mindful with my spending by planning ahead.

Rather than thinking about food options at the last minute, I should set aside time to plan meals for the week and shop

for groceries accordingly. It might seem like a lot of work in the moment but being aware of my habits is crucial and
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would remind me that the effort would be worth it. Also, I should brainstorm ways to make work-from-home more

interesting such as different home setups or public locations that don’t require spending money on drinks. Finally, I

should also brainstorm ideas to spend time with friends that don’t require money, like any free activities or public

attractions. Also, if I consider transportation ahead of time, I could figure out how to use public transport instead of

rideshare (since I won’t have a car) to get to where I need to go. However, the overall best way to keep myself on track

would be to stay up-to-date on tracking expenses using the same categories as those in my budget. Then, I can have a

clear understanding of how much money I have spent in the month (since it is always more than I think!).

To achieve financial stability in my 20s, I plan to utilize a budget and prioritize savings. If I can create the habit of

staying on track with my finances now, it will be easier to continue that in the future. I specifically want to create the

habit of tracking my expenses since I know that having the numbers in front of me will help prevent any unexpected

surprises when I have to pay a credit card bill. I have tried to track expenses in the past but I never kept up with it.

However, I am hoping that the financial strategies I have learned in this class will motivate me to prioritize that task. I

also want to test the waters for different types of investments to figure out what works best for me so I can focus on

those to create better financial security in the future. Furthermore, I am preparing for financial challenges by starting an

emergency fund and making sure my budget is always in a surplus. I also plan to keep track of the status of the economy

and my employer to watch out for any job security issues. I want to eventually create sources of income apart from my

salary so that if anything does go wrong, I will at least have some money flowing in, even if it is a small amount. For

example, I have always had the hobby of video editing, so it might be possible to turn that into a source of income. Also,

my sister is a business major so if she ever starts a business in the future maybe I could help her with any

programming-related (or any other) tasks as a part-time job. Another plan I have to prepare for financial challenges is

making sure to get different types of insurance. For example, long term disability insurance usually only costs 1-4% of

annual income and can act as a 40-65% income replacement in an unexpected disability scenario. Statistics show that a

third of Americans suffer some sort of disability at some point (usually an illness) and that it can last for multiple years.

Therefore, if it applies to the situation, this type of insurance could end up being really helpful during a financial
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challenge. Similarly, to combat any unexpected weather, theft, or accident issues, I plan to also get renters (or

homeowners) and car insurance when it is applicable. To prepare for costs related to any health challenges, I will make

sure to get health insurance as well. Since I am currently young and healthy I might start with a high deductible plan

which also allows for a health savings account, which would help reduce taxes. Overall, I hope that all of this will cover

any financial challenges that are out of my control.

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Section 3: Plan to Achieve Medium-Term Goals

Home Purchase Plan

I probably would not be interested in buying a home until I know that I want to settle down with a family, maybe

a couple years after getting married. I would estimate this to be around 30 years old, so in approximately 8 years after

starting a full-time job. Based on an approximate 3% annual salary increase, I expect my annual pre-tax income to be

close to $152,000. Using the FHA estimate, the monthly payments should be a maximum of $47120.

Cost estimate:

I used this house to estimate the costs. The down payment (~20% of total) would be $159,990. The real estate

agent costs (~3% of total) would be around $23,998.50. The closing costs/fees (~5% of total) would be around

$39,997.50. The mortgage application fee would be around $500. Thus, the total one-time costs would be around

$224,486.

For ongoing costs, the home insurance would be around $280/month, the property taxes would be $673/month,

the mortgage would be $4897, the home upkeep (~2%) would be $1333, utilities would be about $410 (estimate for a 4

bedroom home), and there are no HOA fees (for the listed house). This ends up being an annual expense of $22586,

which is 14.86% of my estimated salary (which is under the FHA recommendation).

Savings plan:

The national average savings account interest rate is 0.21%. Using this rate for 8 years, in order to reach the

one-time cost of $224,486 means I would have to deposit about $27855 into the savings account each year. From my

budget I already have a surplus of $47995, so I can deposit that amount without making any changes to my expenses.

For the ongoing costs, I would add an annual fixed expense of $22586 (~$1882/month) to the budget. My current budget

has a monthly surplus of $6000-8500 but that also includes expenses like rent and utilities (total $1700/month).
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Therefore, taking these out means a surplus of $4300 - 6800, which can easily be used to cover the monthly ongoing

costs of $1882.
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Section 4: Plan for Difficult Life Events

Insurance Plan

Part 1: Insurance Inventory

Personal Property Inventory Worksheet

Name: Sonia Saitawdekar date: 12/6/22

Number Year Original Estimated

of items Item Description Purchased Cost Value Today

1 Used iphone 11 2019 699 260

1 Used MacBook Pro 2015 2015 1299 286

1 Used Adidas backpack 2019 35 20

1 Barely-used apple watch 2022 299 250

1 Used organization stand 2019 15 10

1 Used ThermoFlask water bottle 2018 25 15

1 Used airpods 2nd generation 2020 159 57

1 Used instapot 2020 80 40

1 Used mini vacuum 2019 29 20

1 Used scientific calculator 2014 16 10

1 New milk frother 2022 9 9

1 Used wooden lap desk 2019 30 25

6 Used glass mason jar 2022 4 3

6 Used glass food prep container 2020 7.5 5

1 Used glass blender 2020 43 20

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1 Used UW purple sweatshirt 2019 50 15

1 Barely-used black heels 2019 20 15

1 Barely-used UW Starbucks mug 2022 12 11

1 Used iphone 11 wallet phone case 2022 13 5

1 Barely-used inflatable air mattress 2022 35 35

Part 2: Your Insurance Policies

Renters or homeowners insurance

● Characteristics

○ Covers stolen/destroyed belongings, disaster damages

○ Pays out if you cause harm to others/their property

○ Covers disasters like fire, windstorms (but generally not flooding, earthquakes, infestations)

○ Coverage types can include personal property, loss of use, liability, medical payments

● One year post grad I will likely have renters insurance since I will most likely be renting an apartment in Seattle. If

I end up buying a property instead of renting for some reason, then I would get homeowners insurance instead.

Health insurance

● Characteristics

○ 3 stages: you pay for healthcare until you reach deductible, you pay copay/coinsurance alongside

insurance until you reach the out of pocket maximum (OOPM), insurance pays everything

○ If your job doesn’t offer health insurance, you can use your parent’s plan (up to age 26), medicare (>65),

medicaid (low income), SCHIP (low income children), or COBRA (if lost job)

○ There are usually Bronze, Silver, Gold, Platinum levels that range from low to high monthly payments and

high to low deductibles and coinsurance coverage

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○ It can cover costs related to regular physician visits, specialists, hospital visits, emergency care, or

overnight hospital stays

● One year post grad I will likely have health insurance through my employer (a technology company). However, if

my parent’s insurance has better coverage, I would use their insurance until the age of 26.

Auto insurance

● Characteristics

○ Covers costs related to collisions, medical payments, roadside assistance, liability, injury, and car rentals

○ Helps protect individuals involved in accidents that aren't their fault

○ There are different minimum car insurance requirements for every state

● One year post grad I likely will not have auto insurance since I do not plan to own a car in the near future.

However, if I ever buy a car then I will definitely get auto insurance.

Life insurance

● Characteristics

○ Best if someone is depend on your income

○ Term Life Insurance (simpler, less expensive) is the better option, permanent life insurance is not a good

product

○ Could cost around $400 a year but can have a $500000 payout

● One year post grad I likely will not get life insurance right away since I don’t have anyone that depends on my

income for survival. However, I will likely get it by the time I start a family since it is better to get it when you are

on the younger side to get lower premiums.

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Disability insurance

● Characteristics

○ After paying a monthly premium (cost a total of around 1-4% of annual income) you can receive an

income replacement of 40-65% of your salary

○ Covers non-pre existing disabilities that usually last ~2.5 years

○ 90% of disabilities are caused by illnesses

● One year post grad I likely will get disability insurance since it is a small cost and disabilities are unpredictable

and can come at any time.

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Will

LAST WILL AND TESTAMENT

of

Sonia Saitawdekar

I, Sonia Saitawdekar, presently residing in the State of Washington, being of sound mind and memory, do hereby make,

publish and declare the following instrument as my Last Will and Testament.

Section 1

I hereby revoke any and all other Wills and Codicils made at any time heretofore by me.

Section 2

I direct that all my debts, taxes, and funeral expenses, and the expenses of the administration of my estate, be paid by

my executor as soon after my death as may be practicable.

Section 3

I give and bequeath any personal belongings (clothing, technology, decor etc) to Sanika Saitawdekar if she survives me.

All of the rest, residue and remainder of my estate, whether real, personal or mixed property, of whatsoever kind or

wheresoever located, of which I may own or possess, or which at the time of my death I shall be in any manner entitled

or have an interest, (my residuary estate), I give, devise and bequeath to Shreyas Saitawdekar.

Section 4

If I am currently caring for pets, I transfer the responsibility for their care to Sanika Saitawdekar.
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Section 5

I hereby nominate and appoint Shreyas Saitawdekar as Executor of this, my Will.

Section 6

I direct that no Executor, successor Executor, or other legal representative of my estate shall be required to furnish any

bond or other security in any jurisdiction for the faithful performance of his / her duties.

Section 7

If any beneficiary under this, my Will, fails to survive me by at least thirty (30) days, then it shall be presumed that such

person predeceased me.

Section 8

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my seal this __7th___ day of

____December_________, 2022.

_______ ________

Sonia Saitawdekar
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Witnesses

The foregoing instrument was on this __7th__day of ___December_________ 2022, signed, sealed, published and

declared by the Testator, Sonia Saitawdekar, to be their Last Will and Testament, in our presence and in the presence of

each of us, and we at the same time, at their request, in their presence and in the presence of each other, have

hereunto subscribed our names and residences as attesting Witnesses the day and year last above written, this

attestation clause having first been read to us and to the Testator aloud.

________ ___________ ________Manasi Shah___________________

First Witness Signature Printed Name

_____4515 Brooklyn Ave NE, Seattle APT 1506, WA 98105_________________

Address, City, State, Zip

__________ _______ ________Amrita Narasimhan_____________

Second Witness Signature Printed Name

_______4515 Brooklyn Ave NE APT 1303, Seattle, WA 98105___________________

Address, City, State, Zip

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FINAL ARRANGEMENTS

of

Sonia Saitawdekar

Although not legally binding, I, Sonia Saitawdekar, have certain requests pertaining to the final arrangements to be made

at the time of my passing.

Final Resting Place or Arrangements

I respectfully request that my body be cremated. These are my requests for my ashes: Scattered in water.

Ceremony

I have not chosen any type of ceremony and request that my family decide.

______ _____________

Signature

_____12/7/22_____________

Date
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Section 5: Plan to Achieve Retirement

Investing for Retirement Plan

I personally think that a large diversification of investments would overwhelm me, so I plan to keep it simple and

choose a few diverse options. I would also want to be more of a passive investor, since these are not things that I would

want to think about daily. Therefore, my ideal investment portfolio would be 50% bonds, 20% ETFs, 20% real estate, and

10% stocks. I have no need for short-term gains, so bonds can help provide low-risk fixed income in the long term. I

would be most interested in government bonds (such as treasury bonds) since they are lower risk. ETFs are slightly

simpler than mutual funds and have low costs, ease of access, and index tracking (like S&P 500) which is why I believe

they would be a good option for me. I assume that I will eventually own a house and car, which is why real estate is on

the list. Lastly, although I have a lower risk tolerance I am willing to invest in a few stocks in the hopes of earning higher

gains. I plan to use a Roth IRA and 401k for the majority of my investments, since I expect to have a higher tax bracket in

the future compared to now.

During my nest egg calculations, I mentioned that I have a lower risk tolerance and calculated an estimated real

interest rate of 2.5% (assuming 2.5% inflation, this meant an estimated interest rate of 5%). Since I would already start

with low risk options, I don’t think my risk tolerance would change when I am older. Even though lower risk options

typically mean lower return rates, my goal should still be met since my current portfolio should result in a real interest

rate higher than 2.5% (based on what we know about average rates of return, for example how stock returns are around

7% annually and real estate is 10.6%). However, my plan is to contribute to a savings account with the mindset that my

real interest rate would be on the lower side just in case the investments end up unlucky. Any additional gain can be an

unplanned benefit.
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Retirement Reflection

In my retired lifestyle, it is great that I was able to retire when I wanted without feeling the need to keep working

and keep earning more money. My finances have already been planned ahead of time and have been set up to support

my retirement lifestyle, which has significantly improved my peace of mind about my decision to retire. It is also great

that I am able to travel and spend time with friends and family whenever I want without having to worry about work

schedules. Connecting with others was always one of my primary values, so I am happy for the chance to build on that in

the coming years. I am also glad that I was able to plan my finances so all of my kid’s college expenses are already taken

care of so it is great that there is no more debt to worry about. However, there are some downsides as well. It is not

great that I don’t have a steady income anymore and have to be cautious with my spending to make sure I don’t run out

of money. It is also not great that I don’t have a set schedule anymore since it takes more effort to figure out what to do

with my day. Sometimes the lack of structure and endless opportunities can be overwhelming and I end up wasting the

whole day instead of picking something to pursue. However, I am hoping to use this time to explore hobbies and maybe

even create new passive sources of income, and the best way to do that would be to create a personal schedule for these

interests.

I faced lots of challenges during my life and am thankful for your financial planning that helped me prepare for

them. For example, thank you for making the plan to save for your child’s college expenses from the moment they were

born. Not having to worry about the financial burden of paying for a college education was extremely helpful. Also, thank

you for investing in different ways and creating passive sources of income. Starting this early on gave me more time to

figure out what worked best for me. By testing the waters and exploring all the different risks at your age, I am not able

to continue setting up streams of passive income in my retirement based on what I know will likely produce the best

results without worrying about “what ifs.” The extra money provided more of a cushion and gave me the freedom to

spend on things that I wanted instead of just things I needed. Finally, thank you for saving for retirement and

contributing to a 401k and Roth IRA from your first full-time job. The compounding interest and pre-taxed money have
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been extremely beneficial for expenses during retirement. Knowing that I have all of these savings has reduced the

mental stress of choosing to retire and living a retirement lifestyle.

Although you did a great job setting up your finances for expected challenges, there are some habits that

continued to hurt your finances. I wish you would have not felt peer-pressured to spend money when you were already

satisfied with other less expensive options. You always have had a fear of missing out on opportunities, especially when

you knew that your friends were involved in them or were choosing that option. As a people pleaser, it took a lot of

mental power to try to advocate for cheaper options against. Also, although you did a decent job of trying to minimize

how much you ate out, you still spent lots of money on drinks and snacks. This makes sense since it is usually the easiest

way to spend time with other people, but I wish you would have tried harder to think of other options. For both of these

situations, the financial burden was not super detrimental since you always made sure to never spend more money than

you had, however, sticking with options that you still enjoyed but were on the cheaper side could have saved us much

more money for retirement.

But do not worry, there are lots of things that I am proud about as well. I am most proud of your thoughtfulness

when spending money, especially when it comes to items like technology, clothing, household items, and events. You

always made sure that the value of the product or service was worth the cost and was the best price available. You also

considered all alternatives before making a large financial decision. I am proud of the fact that you did not put pressure

on yourself to match all the current trends and instead only spent money on the things you actually cared about. The

only downside was that this meant that you took a long time to purchase something you wanted and sometimes

over-thought it way too much. But of course, you were spontaneous at times and I am happy that you had the flexibility

in your budget to be able to do that. I am glad that you realized that that was ok to do for rare opportunities. But in the

end, the small acts of saving a little bit of money here and there made a huge difference in the end, so I am very grateful.

Even if you were stressed in the moment, your careful choices meant you never needed to sacrifice savings contributions

so you ended up having a much better peace of mind about your long-term finances.