FINAL PROJECT- This project is an application of chapters 9 - 12. The purpose of the project is to have you apply your finance education to a real world situation. Somehow, find a way to improve your financial situation. I would expect your project to have some detail (maybe 3 to 5 pages long). Tell me what you want to improve and how youre going to go about it. I would expect your project to include back up to support your solution. This project is to help you out. So pick something that is of direct interest to you! Listed below are some ideas but you are not limited exclusively to this list. You are free to be creative. I would ask, however, that you contact me prior to starting your project if you choose a topic other than the ones listed below: Determine if it would be advantageous to refinance your home mortgage. Take into account tax considerations. (Contact banks and mortgage companies for competitive rates. Look at the difference in costs and programs) Consider different length loans. Perhaps you have no interest in refinancing. Look at what it would take to pay your house off in the next 10 to 15 years. How much would you save? What is the impact of putting an additional $50 or more a month towards your home mortgage? (Contact your Mortgage company, they may have different ways to allow to you to prepay some principal) Consider the impact of fixed versus variable loans.....where do you expect interest rates to go in the future and why? If you are currently renting, determine what it would take to purchase a home. Would it be advantageous for you to do so? Dont forget to take into account tax considerations. The purchase of a home almost certainly allows you to use schedule A to itemize expenses. (A real estate person could show you homes within your budget to make your dreams come true.) Consider different length mortgages and fixed versus variable rates. Want extra income? How about buying a multi-family home or an apartment house? What would be involved, would you make money? Dont forget to take into account tax considerations. (A real estate person could give you some ideas on rental properties for sale and the income you could expect to generate.) Consider different length mortgages and fixed versus variable rates. Have you started to plan for retirement? Take a serious look at what you have put aside for retirement. Develop a strategy to allow yourself to retire in comfort. Look at the benefits of IRAs, Roth IRAs Variable Annuities, Keoghs etc. (One good way to start this project would be to contact a financial planner. Most banks offer the service free of charge!) Consider what it would take to retire at different ages (55, 60, 65) Build into your model a best case, worse case and middle case for interest rate earnings. (i.e. 8%, 10%, 12% interest earnings). Investigate different sources of putting your money into (banks versus mutual fund companies) and the types of fees that they charge. Have fun with this!