Create one  personal financial plan for three exemplar couples. Any gender is allowed.

Couple 1: Aged 28 &32 With 2 Children under age of 5.  Their combined net income is $55,000 p/a, total expenditure is $53,000. They should have net investments worth below $30,000, a mortgage worth at least $35000, at 3.5%, and a vehicle loan of $5,ooo at 9.0%

 

Couple 2: Aged 35 &39 with 2 children aged between 5 and 12.  Their combined net income is $65,000 p/a, total expenditure is $56,000. They should have net investments worth below

$6o,ooo, and a mortgage worth at least $3OO,OOO at 3.5%-

 

Couple3: Aged 48 & 52 with 2 children aged between15 & 23.Their combined net income is

$85,000 p/a, total expenditure is $63,000. They should have net investments worth below

$180,000 and a mortgage worth at least $150,000 at 3.5%

Assume that investments pay 6% net p/a. You may ignore the impact of taxes.

 

For each couple

 

1. Create Cash budgets, net worth, and cash flow statements
2. Set financial goals for the next 1 year, 5 year , 10 years and 20 years
3. Create one cash management plan, a budget, a savings strategy, and a debt plan. 
4. Comment on Financial issues, each couple has
5. What is their net worth expected to be at 65?
6. What financial risks does each couple face?

 

 Show all workings. 

Answer rating: 100% (QA)

Assumptions All couples are married filing jointly No other debts besides mortgage and car loan Investment returns are a net 6 annually after fees Financial Statements Well create a sample cash flow s... View the full answer