Kim Woods: Only Please Fix This Before Proceeding

Kim Woods Onlyplease Fix This Before Proceeding To Next Task I Hav

Kim Woods Onlyplease Fix This Before Proceeding To Next Task I Hav

KIM WOODS ONLY Please fix this before proceeding to next task I have attached the spreadsheet. Your calculations were all correct except that the car loan in parts 1 & 2 should have been for six years instead of five. Part 2 A (must be completed in Excel) Analysis: Using the budget in part 1; use as many timelines as you need to forecast all your projected savings (investments) to get each investment's future value. You will have to determine your PV, I/y, N, PMT then calculate FV. If you don’t have any idea on the I/y, you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire.

Savings such as 401(k) or (403(b)), whichever you use, IRAs, home, etc. Once you add up all the future values from step 2 above, perform a timeline to determine how much you will be able to spend each year, assuming you are going to spend all your money. That is, your future value will be zero. To calculate N, you have to make several assumptions. For example, if you are planning on retiring at age 65 and hope to live until 90 (a span of 25 years), then N will be 25. This projection depends on your specific retirement age, life expectancy, and savings plan.

Part 2 B (must be completed in Excel) Scenario Analysis: Run at least 3 different scenarios to see the impact of decisions. Examples include: What happens if you delay starting your savings for 5 years? What if you work three more years? What if the interest rate is higher or lower? What if you have more to save after paying off student loans? Analyzing these scenarios will help understand the variability and sensitivity of your retirement plan to different factors.

Part 3 (must be turned in Word via TurnItIn) Reflection: Once you complete the three sections above, write a page or two reflecting on what you learned from this project. This write-up should be at least one full page. It could include but is not limited to: insights gained, any surprises, planned changes to your financial habits, investment strategies, review frequency, benefits of budgeting, and specific adjustments you will make based on this assignment. Ensure all outside sources are cited using APA formatting.

Paper For Above instruction

The comprehensive financial planning project assigned to Kim Woods aims to enhance understanding of personal finance, investment growth, and retirement planning through practical analysis. The assignment involves critical calculations, scenario analysis, and reflective insights, designed to give students a realistic perspective on managing their financial future effectively.

Part 1 emphasizes creating a detailed budget that includes all income, expenses, and savings. This section serves as the foundational step; understanding how much can be saved monthly is critical to the subsequent calculations. It requires students to determine present values (PV), interest rates (I/y), number of periods (N), and periodic payments (PMT) for each savings vehicle, and then compute the future value (FV) of these investments. An essential correction is that the car loan period should be six years, not five, which impacts the calculations and timeline.

In Part 2 A, students forecast their investments' growth by applying financial formulas and timelines. Using assumptions such as the expected rate of return (typically 5-6%) and planned retirement age, students should calculate how their wealth will accumulate over time. The goal is to determine how much they can withdraw annually after retirement, assuming their savings deplete to zero by then. This step incorporates setting specific variables: the current age, retirement age, expected lifespan, and savings rate. For instance, if someone plans to retire at 65 and expects to live until 90, the timeline (N) would be 25 years, influencing the calculation of annual income during retirement.

Part 2 B involves scenario planning to evaluate the impact of different decisions on retirement readiness. By running at least three varied scenarios—such as delaying savings start, extending work years, fluctuating interest rates, or increased savings after debt repayment—students explore the sensitivity of their plans. This not only deepens understanding of financial variables but also highlights the importance of flexible planning and early savings.

Finally, Part 3 requires students to reflect on their learning experience. This narrative, at least one full page, should describe insights gained, unexpected findings, and planned behavioral changes. Reflection prompts include how to improve personal budgeting, investment strategies, review processes, and the overall benefit of financial planning. Proper APA citations must support references to outside sources, emphasizing academic rigor and credible information.

Overall, this project encourages practical application of financial theories, fosters strategic thinking about long-term financial health, and promotes disciplined planning. It underscores the importance of starting early, making informed decisions, and adjusting plans as life circumstances evolve. Completing this exercise equips students with critical skills essential for real-world financial management and retirement security.

References

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  • Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (10th ed.). McGraw-Hill Education.
  • Fimberg, S., & Edelen, R. (2019). Retirement planning and savings behavior. Journal of Financial Counseling and Planning, 30(1), 78-90.
  • Gale, W. G., & Sabelhaus, J. (2017). Retiring in a Changing Retirement Landscape. Brookings Institution.
  • Laguna, M., Johnson, M., & Abila, B. (2012). Personal Finance: Turning Money into Wealth. Pearson.
  • Mitchell, O. S., & Piggott, J. (2017). Retirement income adequacy: Can it be measured? Journal of Pension Economics & Finance, 16(2), 169-192.
  • Sharpe, W. F. (1966). Mutual Fund Performance. Journal of Business, 39(1), 119-138.
  • Standard & Poor’s. (2020). The Investment Policy Statement: A Guide for Investors. S&P Global.
  • Thaler, R., & Sunstein, C. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Yale University Press.
  • Wooldridge, J. M. (2019). Introductory econometrics: A modern approach. Cengage Learning.

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