1
FIN 350 Final Project Guidelines and Ru
ic
Overview
The final project for this course is the creation of a financial plan.
Financial planning is all about determining short-term and long-term goals and budgeting to meet those goals. In this course, you will learn some of the most
important aspects of the financial planning process. This includes the basic financial planning principles, including financial statement analysis and time value of
money calculations. Throughout the course, you will focus on both individual client financial planning concepts and the key requirements for financial planning
for businesses. You will also discuss ethical challenges that the financial planning professional will face on a regular basis, and how to navigate these challenges
effectively by following the CFP Board’s Code of Ethics and Standards of Conduct.
This course also provides you with a key component of the qualification criteria for taking the Certified Financial Planner (CFP) examination. This certification is a
powerful tool that can provide you with the foundation for a successful career as a financial planning professional.
For the final project, you will act as a financial planner for clients in a given scenario, and you will help them develop a financial plan that is based on the
information provided to you. This assessment will help you develop your skills as a financial planning professional, addressing four of the main elements of a
financial plan for individuals and businesses: budgeting, educational planning, retirement planning, and special tax considerations for individuals and businesses.
The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three and Five. The final project will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Utilize basic financial planning principles in the development of individualized budgets based on clients’ objectives and risk tolerances
Analyze clients’ educational needs, costs, and funding sources for facilitating the educational planning process
Analyze common retirement planning strategies for making recommendations based on clients’ cu
ent and projected assets and liabilities
Analyze various special tax situations of business entities and individuals for minimizing clients’ tax liability
2
Prompt
Create a financial plan for the clients in the scenario described in the Final Project Case Study document. You will act as a financial planner and speak directly to
the clients. Research and APA citations should be included to support your recommendations.
Specifically, the following critical elements must be addressed:
I. Budgeting: In this section of the financial plan, you will analyze your clients’ cu
ent financial situation and make budget recommendations to help
them reduce their expenses and save more. It is important to remember that you need to base your recommendations on basic financial planning
principles and that your clients might not know what those are.
A. Analyze the clients’ financial statements and determine where expenses could be reduced. In your analysis, be sure to do the following:
1. Identify clients’ expenses that could feasibly be reduced and discuss the potential impacts of those reductions on their budget.
Support your discussion with examples.
2. Explain the impact of a 20% rise in expenses on the clients’ ability to save for retirement assuming everything else remains constant.
Support your explanation with specific details.
3. Discuss the advantages and disadvantages for the clients of refinancing the existing 30-year mortgage to a 15-year mortgage with a
slightly higher interest rate.
B. Recommend realistic changes to the clients’ budget, which are based on basic financial planning principles.
II. Educational Planning: In this section of the financial plan, you will analyze your clients’ educational assets to determine the viability of their cu
ent
plans. Then you will make recommendations about possible investment opportunities to help the clients bolster their educational savings.
A. Analyze the clients’ educational assets and determine the viability of their plans. In your analysis, be sure to do the following:
1. Discuss the ability of their cu
ent educational savings plan to meet the educational expense target for each child. In this instance,
assume that each child will enter college at age 18 at a combined cost of $100,000 yearly and that there will be no rate of growth on
educational assets. Support your discussion with relevant details.
2. Determine how much the clients will need to save each year to meet the educational expenses target for their children. Assume
educational expenses will be $100,000 per year when both children are in school. Support your determination with relevant details.
B. Based on the clients’ risk tolerance and capacity, recommend possible investment vehicles to help them bolster their educational savings.
http:
snhu-media.snhu.edu/files/course_repository/undergraduate/fin/fin350/fin350_final_project_case_study.pdf
http:
snhu-media.snhu.edu/files/course_repository/undergraduate/fin/fin350/fin350_final_project_case_study.pdf
3
III. Retirement Planning: In this section of the financial plan, you will analyze your clients’ retirement assets to determine the viability of their cu
ent
plans. Then you will make recommendations about potential retirement savings and investment vehicles for the clients, based on their cu
ent plans
and goals.
A. Analyze the clients’ retirement assets and determine the viability of their plans. In your analysis, be sure to do the following:
1. Discuss the ability of the clients’ retirement assets to meet their needs during retirement. In this instance, assume that Mr. Doe will
etire at age 66, that Mrs. Doe will retire at age 62, that they invest 50% of the net income annually in savings, and that savings
grows 5% yearly through retirement. Support your discussion with relevant details.
2. Describe potential changes that may occur within the clients’ expenses as they age in retirement. Support your description with
elevant examples.
3. Discuss the impact of an unexpected, monthly healthcare cost of $10,000 on the required minimum after-tax return on the clients’
portfolio. Assume that one of the clients becomes unexpectedly incapacitated and that all other expenses remain constant.
4. Discuss the impact of a significant stock market decline on the clients’ savings and investments regarding retirement income.
Support your discussion with specific examples.
B. Based on your analysis of the clients’ retirement assets, discuss the advantages and disadvantages of potential retirement savings and
investment vehicles for the clients. Support your discussion with specific examples.
IV. Tax Planning: In this section of the financial plan, you will analyze special tax situations related to the clients’ business and make tax
ecommendations to help them minimize their tax liability.
A. Analyze special tax situations relevant to the clients and determine which would be most effective at minimizing their tax liability. In your
analysis, be sure to:
1. Discuss the advantages and disadvantages of the clients using the LLC legal structure as it relates to income taxes.
2. Compare the tax implications of potential retirement savings vehicles based on the clients’ financial statements.
3. Discuss the potential tax benefits for the clients of charitable contributions. Support your discussion with specific examples.
B. Describe common triggers of AMT and explain how the clients can avoid them.
4
Milestones
Milestone One: Draft of Budget and Education Plan
In Module Three, you will submit a draft of your budget and education plans for Jane and John Doe. As you begin working with your new clients, you will review
their cu
ent financial situation and make budget recommendations to help them reduce their expenses and save more. It is important to remember that you
need to base your recommendations on basic financial planning principles and that your clients might not know what those are.
Once you have a basic understanding of your clients’ financial situation and budget, you will begin to evaluate their educational assets to determine the viability
of their cu
ent plans. Then you will make recommendations about possible investment opportunities to help the clients bolster their educational savings. This
milestone will be graded with the Milestone One Ru
ic.
Milestone Two: Draft of Retirement and Tax Plans
In Module Five, you will submit a draft of your retirement and tax plans for Jane and John Doe. Analyze your clients’ retirement assets to determine the viability
of their cu
ent plans. Then you will make recommendations about potential retirement savings and investment vehicles for the clients, based on their cu
ent
plans and goals.
Following your analysis of your clients’ retirement plans, determine the special tax situations related to their business, an d make tax recommendations to help
them minimize their tax liability. This milestone will be graded with the Milestone Two Ru
ic.
Final Submission: Financial Plan
In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
eflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Ru
ic.
Final Project Ru
ic
Guidelines for Submission: Submit assignment as a Word document with double spacing, 12-point Times New Roman font, and one-inch margins.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Budgeting:
Clients’ Expenses
[FIN-350-01]
Meets “Proficient” criteria, and
esponse demonstrates a
sophisticated awareness of the
complex relationship between
expense reduction and budgets
Identifies clients’ expenses that
could feasibly be reduced,
discussing the potential impacts
of those reductions on their
udget, and supports discussion
with examples
Identifies clients’ expenses that could
e reduced, discussing the potential
impacts of those reductions on their
udget, but not all identified expense
eductions are feasible, or discussion
is cursory or illogical, or supporting
examples are i
elevant or nonexistent
Does not identify clients’
expenses that could be
educed, discussing the
potential impacts of those
eductions on their budget
6
5
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Budgeting:
Clients’ Ability to
Save
[FIN-350-01]
Meets “Proficient” criteria, and
esponse demonstrates a complex
grasp of the impacts of expense
changes on retirement savings
Explains the impact of a 20% rise
in expenses on the clients’ ability
to save for retirement and