PERSONAL FINANCIAL PLAN
Yuna Song
This document provides my personal financial plan for next 20 years. I’m going to provide
details about my net worth, personal property schedule, automobiles, mutual funds, loan
schedule.
Introduction
–Financial Planning is managing income and wealth continuously through life to meet
financial goals. If I could reach to my financial goals by simply putting money away in
the bank, I wouldn’t need a financial plan. But there are lots of variable in our life. So I
need a personal financial plan. If I make a financial plan for my life at least outline it is
going to be easier and safer to reach to my financial goals effectively. It will help me to
see how should I manage my money and by showing me where my money goes in and
out each month. It’s also going to help me to understand about my financial sates very
well.
–My plan is going to start January 1, 2020 and will end December 31, 2040.
–My definition of a financial plan is a guide line of my life. I think making financial plan
is same as making guide line of my life. For example, if I want to make 1million dollar in
a year, I am going to make a plan for this and also I am going to try to follow it as much
as I can.
–I have four life goals to reach. First, I want to go to volunteer abroad at least a year to the
least developed country. Second, I want to work at the cosmetic company, especially at
Christian Dior. Next, I want to run hostels in Korea. The very last one is building
beautiful Korean traditional house in America and living in there with my whole family
–I’m not expecting myself to become a very rich person however I would like to have
“enough” money so that I don’t have to worry about my future financial plan too much
such as retirement and college tuition for my children and also for building Korean
traditional house in America. I will have extra money for myself to enjoy traveling once a
year or go shopping to make me happy or to help kids who are struggling with their
money problem. Especially for education.
–I’m going to start putting money on my retirement plan and mutual funds after I finish
my undergraduate and start working. Also I will invest in house because everybody needs
home. I would like to have different bank accounts (savings and checking) because I
would use those for different purpose.
–I’m going to present my financial plan through balance sheet and lists or tables.
–I will use net worth statements and balance sheet of my mutual funds, loan, and
retirement schedule that will report my progress every five years for twenty years.
–My financial plan organized with an introduction. It explains what my life goals and
financial goals are. First, I’m going to write an introduction to show my opinions about
the future financial plan and provide the background information about myself; Second,
I’ll provide my brief net worth statement with descriptions for every 5 years from 2020 to
2040 (I’m going to provide details later); Third, I will provide my personal property
schedule; Next, I will provide my automobile description and loan schedule. And Last,
I’m going to talk about mutual fund and retirement fund.
Net worth Statement
This section presents my Net Worth every 5 years for 20 years from 2020 to 2040. This will
present how I plan to grow financially.
I will graduate from college in 2018 but I’m planning to start working early in 2020. Because
I’m going to go to volunteer abroad after I graduate from college. I will be 26 years old in 2020
and am planning to work for 30 years. I will work at the cosmetic company which is Christian
Dior. I plan to be making on average $38,000-$68,000 for first 20 years and average $70000-
80000 for last 10 years.
2020
I’m supposed to graduate in May, 2018. But as of December 2020, I wouldn’t have lots of money
by then because it’s right after my volunteer abroad trip.
1. I would already have a used car by then. I’m not planning to buy a new car until 2024.
2. I would like to start investing for retirement right after I came back from trip. I will join
the company and also I will join my employer 401(k), assuming that my employer
contributes 3% of my pay and will match up total 9.43%b. I plan to retire at the age of 56
(work for 30 years)
3. I would love to own a home and need to start accumulating enough funds for down
payment. For my 20s, I would live in an apartment and pay the rent and later in my mid
30s, I would like to own home in New York City borough of Queens (Jackson Heights). I
