Austine Renner
PERSONAL FINANCE PLANNING
April 9, 2019
A five-year financial plan is important if the client wants to have a grounded plan for
either retirement, higher education for children, or if there is a clear goal that he or she wants to
meet at the end of the five years, and if he or she has more than one goal for five years. The
clients name is I Mr. John Smith. He would need to know what his wants and needs are that he
needs to be met at the end of the five years; also known as goals that Mr. Smith would want to
achieve. From an article written by Julia Kagen titled “Financial Plan” stated: “A financial plan
is based on an individual’s or a family clearly defined financial goals, including funding a
college education for the children, buying a larger home, starting a business, retiring on a time or
leaving a legacy. Financial goals should be quantified and set to milestones for tracking”
(Kagen). In other words, to set up a financial plan one must think about the financial goals he or
she is wanting to achieve. Regarding Mr. Smith’s five-year plan, he has health and auto
insurance but has yet to save for college education, retirement, and an emergency fund. Mr.
Smith needs to invest in college saving account, retirement savings and emergency funds.
The first goal that needs to be meet at the end of the five years is to have started college
savings for Mr. Smith’s two kids who are at age eight and five. The first child will graduate in
