BUS215 Financial Report Presentation

For this final project, you will present a financial report for your “client” addressing their financial needs you identified in your interview in Week 2.
Incorporate the financial report analysis you created in Week 4, and
integrate any instructor feedback into your final presentation. Please consider topics like renting versus buying, life insurance, credit, debt reduction, budgeting, or retirement planning in your report. “feel free to improvise information for graphs and any gaps as the “client” is not a real person”. This information needed for this assignment is in the attachment.

Your financial report presentation must

Analyze the current financial situation of your client.

Evaluate their financial goals based on the current social, demographic, and economic trends.

Solve their current financial problems, which are a hindrance in achieving their financial goals, by applying the principals and processes of financial management.

Create a contingency plan and make recommendations to help them achieve their financial goals.

Part 1: Power Point Requirements

Create a PowerPoint presentation based on your Financial Report that was completed in Week 4. This presentation should address
highlights
of your report and what you feel is most important for your client to understand to help them achieve their goals.

The PowerPoint presentation should

Include eight to 10 slides and cover the major elements of your financial report.

Contain speaker notes for each slide to further explain the information on that slide.

Include a cover slide with your name, date, and title. (This is not included as part of the eight- to 10-slide requirement.)

Use at least two graphics (examples: charts, trend line, tables) to illustrate your key points and make the presentation look professional.

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BUS215 Week 4 Assignment Financial Report
Quinton House
Professor Donald Frey
University of Arizona Global Campus
Personal Finance Management/ BUS 215
July 29, 2024
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BUS215 Week 4 Assignment Financial Report
Client Background
The client, age 39, currently works as a social security analyst. A social security analyst is a state
position that includes some medical benefits and the possibility of retirement. Because this is a
state position, bonuses are not an incentive. The client is not eligible for a promotion as they
have not been in the organization long enough. Prior to her position as a social security analyst,
she worked for a law firm as an intake specialist and assistant investigator and spent many years
working in food services. The client is married with two children.
The current Financial situation of the client
The client earns $55,000 annually with a monthly income of $3,438. Her spouse makes
approximately $70,000 per year for a household total of $125,000. She has $3,500 in savings.
The client’s income will be the only income used for this report due to the client’s goals. The
client’s significant expenses include vehicle loan payments, utility bills, student loan repayment,
vacations, insurance, credit cards, and medical bills. She does not require medical insurance due
to her husband’s status in the military. Below is a listing of current debts/ liabilities and savings
additions.
Utilities expense:
1. Water: Approx. $150 monthly
2. Electricity: Approx. $200 monthly
3: Internet: $100 monthly
Credit cards:
1. $5,456.56, 12% interest, $80 monthly
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2. $1,974.78, 14% interest, $55 monthly
Loans:
1. Personal loan: $3,222, 15% interest
2. Vehicle loan: $7,344, 5.4% interest
Medical:
1. $2,945, $125 monthly
Car Insurance:
1. $89 monthly
Savings:
1. $250 monthly
Future Goals of the Client
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Retirement goals
o The client’s current working status offers the possibility of retirement after 20
years with the organization. Because the job is state/federal, she is not required to
stay with the specific organization as long as she moves laterally between a state
or federal position. The client has worked for the company for approximately one
year. Due to her age, retiring from the company is not a guaranteed duty, and
there are no opportunities to apply for positions with more pay. The client has
opted into a 401k program with the company to start a retirement fund and wants
a more robust backup plan. Due to her husband’s active duty status, she sees
herself working for less than 20 years with the company as her husband plans to
retire within five years and find another career shortly after.
•
Homeownership goals
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o The client’s husband has the family home in his name and uses a VA loan. The
client and their spouse plan to finance another home in the next five years, and the
client wants to have a credit score that is good enough to sign onto the mortgage
loan and not raise the interest rate.
•
College savings goals
o The client’s college savings goals are for her oldest child due to the younger
stepchild having a means for college. The child is 14 years old, and the client has
yet to begin saving for college. With an understanding that she needs to catch up
on starting to save, the client wishes to begin saving now in order to match at least
half of the required tuition so that the child does not require a substantial financial
aid loan.
•
Investment goals
o The clients’ investment goals are centered on retirement. She wants to ensure she
can contribute enough funds to retire comfortably with her spouse. After
discussion, the client is interested in investing only in retirement.
Evaluate the Client’s Goals
•
Retirement goals
o With the potential to move laterally within state or federal positions, the client’s
retirement plan must account for potential job changes and the possibility of
varying pension benefits or retirement plans. This mobility could impact her longterm retirement savings, so diversifying her investments beyond the 401(k) might
be wise. Starting a 401(k) is a good step, but it is crucial to maximize
contributions, especially if her job allows matching contributions. Given her
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husband’s plan to retire within five years, the client should consider how their
combined retirement plans and potential changes in income might affect their
overall financial strategy. With her husband retiring soon, their household income
and financial responsibilities will shift. This could create both opportunities and
challenges. For example, they may face a period of reduced income if their
husband transitions to a new career. Therefore, creating a more robust backup
plan, such as increasing emergency savings or investing in a diversified portfolio,
will be necessary.
Since she is unsure about staying with the same organization for the full 20 years
and might seek higher-paying opportunities, focusing on personal investments
outside the employer’s 401(k) plan could provide additional security. Consider
setting up an IRA or investing in a mix of assets like index funds or ETFs to build
a more resilient financial base. The shifting nature of the job market and the
potential for economic fluctuations mean that the client should be prepared for
changes in income and benefits. Flexibility and adaptability in her investment
strategy will be essential.
•
Homeownership goals
o Economic conditions, including the Federal Reserve’s interest rate policies, can
significantly affect mortgage rates. Interest rates are subject to fluctuations based
on inflation, economic growth, and central bank policies. Keeping an eye on these
trends will help timing the purchase for more favorable rates. Home prices and
market conditions can vary. Recent trends show that while some markets are
cooling, others are still experiencing high demand. Understanding local market
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conditions will be crucial for making a well-timed purchase. Planning for a down
payment on the new home is critical. Given current trends, having a substantial
down payment can reduce the loan amount and improve the chances of better
mortgage terms.
A high credit score is crucial for securing a mortgage with favorable terms.
Trends indicate that mortgage lenders are increasingly stringent about credit
scores, so maintaining or improving a good credit score will be essential. The
client should focus on paying down existing debt, avoiding new debt, and
ensuring timely payments on all accounts.
•
College savings goals
o College tuition costs have been rising steadily, often outpacing general inflation.
According to recent data, average tuition rates have increased significantly,
meaning that even moderate savings can fall short. This trend necessitates
aggressive saving strategies to keep pace with anticipated costs. Federal student
loan debt is at record levels, with many students relying heavily on loans to cover
college expenses. Given this trend, reducing the need for substantial loans through
savings can provide a significant advantage and alleviate future financial stress.
Financial aid can be complex and varies based on income, assets, and other
factors. Starting to save now can reduce reliance on aid, which might not fully
cover tuition and may come with terms that impact long-term financial health.
•
Investment goals
o Economic fluctuations and market volatility can affect the returns on retirement
accounts. The current economic environment, including interest rates set by
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central banks, influences bond yields and stock market performance. Diversifying
within retirement accounts to manage risk and benefit from growth is crucial.
Initiatives to mitigate risks and deliver financial returns
•
Create a Budget: Track your income and expenses to understand where your money
goes. Use tools or apps like Mint, YNAB (You Need A Budget), or a spreadsheet.
•
Prioritize Savings: Allocate a portion of your income to savings before other
discretionary spending. Aim for at least 20% of your income to be used for savings and
debt repayment.
•
529 College Savings Plan: Open a 529 Plan, which offers tax advantages for education
savings. Contributions grow tax-free, and withdrawals for qualified education expenses
are also tax-free.
•
Set Up Automatic Contributions: Even small, regular contributions can add up over
time. Start with what you can afford and increase it as your financial situation improves.
•
401(k) or 403(b): Contribute to your employer-sponsored retirement plan, especially if
there is a matching contribution. Aim to contribute at least enough to get the entire
match.
•
IRA (Individual Retirement Account): Consider opening a Roth IRA or Traditional
IRA to take advantage of tax benefits. Contributions to a Roth IRA are made with aftertax dollars, but withdrawals are tax-free in retirement. Traditional IRA contributions may
be tax deductible, but withdrawals are taxed as ordinary income.
Contingency Plan
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Goal: Save 3-6 months’ worth of living expenses.
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o Establish an Account: Open a high-yield savings account specifically for
emergency funds.
o Automate Contributions: Set up automatic transfers from your primary checking
account to your emergency fund.
•
Goal: Handle unforeseen costs without disrupting your financial goals.
o Ensure you have appropriate coverage (health, auto, home, and disability
insurance).
o Have flexible savings. Use a portion of your emergency fund for unexpected
expenses.
Recommendations and Justification
Achieving your financial goals requires balancing saving, investing, and managing expenses.
Start with a solid budget and gradually build your savings. Prioritize high-impact areas like
emergency funds and debt reduction and consistently contribute to long-term investments.
Regularly reviewing and adjusting your plan will help you stay on track and make progress
toward your goals.
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References
Kapoor, J. R., Dlabay, L. R. Hughes, R. J., & Hart, M. (2023). Personal finance (14th ed.).
McGraw-Hill Education.
McGraw-Hill Education. (n.d.). How to pay down credit card debtLinks to an external site.
[Video]. Viddler.
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Folger, J. (2024). Roth IRA vs. 401(k): What’s the Difference?
https://www.investopedia.com/ask/answers/100314/whats-difference-between-401kand-rothira.asp#:~:text=Key%20Takeaways&text=Contributions%20to%20a%20401(k)%20are%
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20tax%20deductible%20and%20reduce,withdrawn%20tax%20free%20in%20retiremen
t.
Benson, A. (2024). 529 College Savings Plans: Benefits and List of 529 Plans By State.
https://www.nerdwallet.com/article/investing/529-plans-bystate?ajs_uid=d2cdb1406c73c22c65d237dc0f85ba26dfb6ad697fe0c3785f17d57ca214
4ded
Kagan, J. (2024). 529 Plan: What It Is, How It Works, Pros and Cons.
https://www.investopedia.com/terms/1/529plan.asp