University Portfolio Management Assignment: Income and Net Worth

This assignment focuses on applied portfolio management, specifically the creation of monthly income and net worth worksheets for a married couple, Mark and Jan. The assignment utilizes the provided investor profile, detailing income, assets, liabilities, and financial goals. The student calculated the couple's gross monthly income, considering salaries, employer contributions to 401(k) plans, and other sources, arriving at a total family income. The net worth worksheet outlines the family's assets, including checking and savings accounts, investments, and real estate, alongside their liabilities, such as auto loans and mortgages. The final calculations reveal the couple's total monthly income and net worth, providing a snapshot of their financial position. The student also notes the assumptions made in the calculations, such as the rates of return on investments and savings accounts, and provides references to relevant financial literature.

Running head: APPLIED PORTFOLIO MANAGEMENT
Applied Portfolio Management
Name of the Student:
Name of the University:
Authors Note:

1
APPLIED PORTFOLIO MANAGEMENT
Contents
Monthly income worksheet:............................................................................................................2
Net worth worksheet:.......................................................................................................................6
References:......................................................................................................................................9

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APPLIED PORTFOLIO MANAGEMENT
The monthly worksheet and net worth worksheet are two separate worksheets which will help us
to calculate the monthly income of the family before expenses and the amount of net worth of
the family. No assumptions of items which have not been provided have made to keep monthly
income and net worth aligned with the information provided about the couple and the family.
Monthly income worksheet:
As per the information the monthly income worksheet of the couple Mark and Jan has been
prepared below.
Particulars Mark ($) Jan ($)
Salary / wages 6,250.
00
6,250.
00
Bonus / incentives
- -
Commissions
- -
Interest / dividend
- -
Loan repayments
- -
Partnership draw
- -
Rent 2,000.

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APPLIED PORTFOLIO MANAGEMENT
00 -
Reverse mortgage
- -
Royalties / licensing fees
- -
Self employment draw
- -
Social security survivor benefits
- -
Unemployment compensation
- -
Alimony
- -
Child support
- -
Court settlement
- -
Disability / long term care insurance
benefits - -
Social security disability benefits

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APPLIED PORTFOLIO MANAGEMENT
- -
Union disability benefits
- -
VA disability benefits
- -
Worker's compensation
- -
Annuities
- -
Deferred compensation
- -
Pension / profit sharing plans
- -
401 (k) / 403 (b) plans 250.
00
333.
33
IRAs
- -
Keogh / SEP plans
- -
Military pension

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APPLIED PORTFOLIO MANAGEMENT
- -
Social security retirement
- -
Union pension
- -
Other (Note I) 187.
50 -
Gross income of each person from all
sources
8,687.
50
6,583.
33
Total family income 15,270.
83
Assumptions:
It is important to note that certain assumptions have been made to calculate the monthly income
of the couple; these are as following:
I. The investment provides a 5% rate of return annually to the investor.
II. The savings bank account provide a 3% annual rate of return on the balance amount
in the account.
III. No interest is provided on balance in checking account.
IV. The above worksheet only contains income and not expenses of the family.

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APPLIED PORTFOLIO MANAGEMENT
Net worth worksheet:
The net worth work sheet below shows the amount of net worth of the family on the basis of
available information about the assets and liabilities currently held by the family (Rauscher, and
Elliott).
Net worth worksheet
Liquid assets: Amount ($)
Checking account 8,000.00
Savings account 25,000.00 Liabilities:
Money market fund
Current bills
Marketable investments Auto loans 7,000.00
Stocks
Bonds
Mutual funds Taxes due
CDs Credit card debt
Annuities Mortgages 300,000.00
Other debts 10,000.00
Retirement funds Total liabilities 317,000.00

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APPLIED PORTFOLIO MANAGEMENT
401 (K) 80,000.00
IRA plans
Net worth:
Total assets 513,000.00
Real Estate Less: Total liabilities 317,000.00
Home 350,000.00 196,000.00
Investment properties 30,000.00
Date:
Life insurance (death benefit)
Personal property
Automobiles 20,000.00
Furniture / appliances
Jewellery
Collectibles and hobbies
Miscellaneous assets
Loan to people

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APPLIED PORTFOLIO MANAGEMENT
Business interests
Other
Total assets 513,000.00
In summary it is clear that the gross monthly income of the family is $15,270.83 and the net
worth of the family is $196,000. The objective behind the assignment is to complete the two
separate worksheets of monthly income and net worth of the family. The outcomes were not
surprising as these were in line with the information about the couple and the family. However,
availability of additional information could have been helpful to complete the worksheets fully
(Fernandez et al.).

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APPLIED PORTFOLIO MANAGEMENT
References:
Fernandez, Pablo et al. "Madera Inc: Significado De Fondos Propios Y Beneficio (Meaning Of
Net Worth And Net Income)". SSRN Electronic Journal, vol 05, no. 05, 2017, pp. 17-
22. Elsevier BV, doi:10.2139/ssrn.2252485.
Rauscher, Emily, and William Elliott. "Wealth As Security: Growth Curve Analyses Of
Household Income And Net Worth During A Recession". Journal Of Family And Economic
Issues, vol 37, no. 1, 2015, pp. 29-41. Springer Science And Business Media LLC,
doi:10.1007/s10834-015-9442-7.