Financial Planning TABLE OF CONTENTS INTRODUCTION
Added on 2020-06-05
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Financial Planning
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1CONCLUSION................................................................................................................................2REFERENCES................................................................................................................................4
INTRODUCTIONFinancial planning implies for the process that provides high level of assistance to theindividual authority in meeting goals through ensuring effective management of funds. It enablesconcerned authorities to invest money in the suitable opportunities by doing evaluation of both gcurrent and future options available. The present report is based on the case situation of Eric andJayne Ryan which will shed light on the risk profile of them. Besides this, it also entails whethersuch couple should start a regular saving plan or make focus on paying off mortgage. MAIN BODY On the basis of cited case situation, Eric and Jayne Ryan have 3 children and have beenmarried for 20 years. Case scenario clearly entails that couple has a mortgage of $80000 and alsohold a mixture of growth & income assets amounted to $70000 respectively. Current profile ofthe couple shows that they are balanced investors. Along with this, given summary of Eric andJayne Ryan presents that two children of them are independent, whereas the last one is just aboutto graduate and will start job in 2018. Referring such situation, it can be stated that excessdisposable income of such couple will be related to the third child. In other words, it can bedepicted that in 2018 third child will work as an independent entity. Thus, they do not need toincur any expense on third child or others. Further, case also presents that both the entities do nothave any debt. Hence, now children of such couple has grown up and left home so they arerecognized as empty nester. Thus, by taking into account all the above aspects it can be statedthat such couple has some excess disposable income that can be invested by them in otherprofitable opportunities.Further, from evaluation, it has identified that Eric and Jayne has two options either makepayment of mortgages faster or start to invest money in the regular savings plan of their managedfund. In this regard, before making selection of opportunity both the entities need to makeevaluation of cost and related benefits. Moreover, in the context of growth and income assetsconcerned authorities have to wait for longer time in relation to generating high returns (Bačováand et.al., 2017). Benefits and drawbacks which are associated with the different options areenumerated below:
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