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 Professional Responsibility.
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 inModule 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’ current and projected assets and liabilities
 Analyze various special tax situations of business entities and individuals for minimizing clients’ tax liability
Prompt
Create a financial plan for the clients in the scenario described in the Final Project Case Study document.
Specifically, the following critical elements must be addressed:
I. Budgeting: In this section of the financial plan, you will analyze your clients’ current 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 current
   plans. Then you will make recommendations about possible investment opportunities to help the clients bolster their educational savi ngs.
   A. Analyze the clients’ educational assets and determine the viability of their plans. In your analysis, be sure to do the following:
4. Discuss the ability of their current 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.
5. 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.
   III. Retirement Planning: In this section of the financial plan, you will analyze your clients’ retirement assets to determine the viability of their current plans.
   Then you will make recommendations about potential retirement savings and investment vehicles for the clients, based on their current 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:
6. Discuss the ability of the clients’ retirement assets to meet their needs during retirement. In this instance, assume that Mr. Doe will
   retire 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.
7. Describe potential changes that may occur within the clients’ expenses as they age in retirement. Support your description with relevant
   examples.
8. 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.
9. Discuss the impact of a significant stock market decline on the clients’ savings and investments with regard to 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 recommendations
   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:
10. Discuss the advantages and disadvantages of the clients using the LLC legal structure as it relates to income taxes.
11. Compare the tax implications of potential retirement savings vehicles based on the clients’ financial statements.
12. 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.
    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 current 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 current 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 Rubric.
    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 current plans. Then you will make recommendations about potential retirement savings and investment vehicles for the clients, based on their current
    plans and goals.
    Following your analysis of your clients’ retirement plans, determine the special tax situations related to their business, and make tax recommendations to help
    them minimize their tax liability. This milestone will be graded with the Milestone Two Rubric.
    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
    reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.