Financial Goal Setting Worksheet and Financial Planning Analysis

This assignment presents a comprehensive financial goal-setting worksheet designed for a couple, Mark and Jan, aged 35, with two young children. The worksheet outlines their financial goals, categorized into short-term (establishing a business, paying off student loans), medium-term (children's education, travel, car purchase), and long-term objectives (retirement, inheritance). It details the amount needed, time frame, and investment types for each goal, including savings accounts, bonds, and stocks. The analysis includes calculations for monthly contributions and rates of return. The couple's financial situation is considered, including their income, assets, debts, and retirement plans, to assess their overall financial planning. The conclusion emphasizes the importance of a well-defined financial plan, categorizing goals, and the necessary savings required to achieve them.

Last name 1
First name Last name
Instructor’s Name
Course Number
31 August 2024
Goal Setting worksheet
When developing a financial plan, it is vital that financial goals are clearly
identified, an estimated cost of goals, and the time frame required to achieve the goals.
Financial goals can broadly be categorised into short-term, middle-term, and long-term
goals (Hilbert, et al. 309). However, financial goals are prone to change over time due to
unavoidable circumstances and, thus the need to reevaluate financial goals over time
(Nathanson, et al. 63). Nonetheless, having a worksheet that clearly defines the financial
goals of an individual is a prudent practice in financial management.
Mark and Jan are couples aged 35 and have a son and daughter aged two and one,
respectively. The two earn an average of $75,000 per year each and jointly own home
worth $350,000. Notably, the couple does not plan on relocation to another home but
wishes to retire before the age of 65. Being a young family, they also aim at saving
$25,000 per child for their college and purchase a vehicle for $15,000. The couple also
wishes to start a business and clear their student loans. Given the scenario, the list of
financial goals of Mark and Jan could be summarized as shown in the table below.
Table 1: List of financial goals
Goal Time
Frame
On -Hand Needed Rate of
return
Needed
Investment
type

Last name 2
Establishin
g a business
24 months $10000 $50,000 Monthly
contribution
of $1500 at
7.178% rate
of return
Savings
account &
money
market
accounts
Paying off
student
loans
36 months $500 $20000 A monthly
contribution
of $500 at
5.252% rate
of return
Short term
bonds
Paying for
their
children’s
education
5 years $500 $50,000 A monthly
contribution
of $700 at
6.558% rate
of return
Stocks in
various
companies
Traveling to
a special
destination
7 years $100 $5,000 A monthly
contribution
of $50 at
4.24% rate
of return
US treasury
notes
Buying a
new car
10 years $150 $15,000 Monthly
contribution
of $100 at
4.139% rate
of return
Bond Funds
Living
comfortably
during
retirement
30 years $200 $400,000 A monthly
contribution
of $200 at
13.006%
rate of
return
Long term
bonds

Last name 3
Providing
inheritance
for their
heirs
30 years $100 $200,000 A monthly
contribution
of $100 at
9.796% rate
of return
Stock
mutual
funds
Table 2: Financial goal setting worksheet
1. Goals 2.
Amount
needed
3. Time
needed
4. Period
in Months
5. Time to
start
saving
6. Monthly
amount to
save
Short term (under 3 years)
Establishing a
business
$50,000 Jan, 2022 24 Jan, 2020 $1500
Paying off
student loans
$20,000 Jan, 2023 36 Jan, 2020 $500
Medium-term (3-10 years)
Paying for their
children’s
education
$50,000 Jan, 2025 60 Jan, 2020 $700
Traveling to
Africa
$5,000 Jan, 2027 84 Jan, 2020 $50
Buying a new
car
$15,000 Jan, 2030 120 Jan, 2020 $100
Long Term (more than 10 years)
Living
comfortably
during
retirement
$400,000 Jan, 2050 360 Jan, 2020 $200
Providing $200,000 Jan, 2050 360 Jan, 2020 $100

Last name 4
inheritance for
their heirs
Table 3
Goals Estimated cost Target Date Budget (Savings
per month)
Short Term $70,000 2023 $2000
Medium Term $70,000 2030 $850
Long Term $600,000 2050 $300
Conclusion
Overall, the couple’s financial goals can broadly be categorized into short term,
Middle term, and long-term goals. Financing short-term goals will be through saving
accounts, current deposit accounts, and short-term bonds. On the other hand, middle-term
goals will be financed by company stocks and treasury bonds. Lastly, long team goals
will be financed by long term bonds and stock mutual funds. The rate of return needed to
have the goals achieved has been computed as seen in Table 1 above. Table 2 shows
financial goal setting worksheet. As such, the couple will be required to save an average
of $3,150 per month which is 25.2% of their total income.

Last name 5
References
Hilgert, Marianne A., Jeanne M. Hogarth, and Sondra G. Beverly. "Household financial
management: The connection between knowledge and behavior." Fed. Res. Bull. 89
(2003): 309.
Nathanson, Michael J., et al. "Achieving Financial Independence: Goals-Based
Planning." Personal Financial Planning for Executives and Entrepreneurs. Palgrave
Macmillan, Cham, 2018. 63-78.