Life Planning Presentation

LifePlanningAssignmentInstructions_1.pptxExample-LifePlanSubmission CLE-LifePlanningAssignment.pptxLifePlan_Spr19Instructions_2.pptx

Please read instruction documents #1 and #2 to help guide you through the process of creating a Life Plan Presentation. I have also included an example of a Life Plan Presentation Document to help you gain a better understanding of all the requirements that are needed in the finished presentation. I have attached my initial CLE – Life Planning Assignment with some of my financial and professional goal information to help get the process started. Use my CLE – Life Planning Assignment Presentation and expand upon what I have provided in order to complete this assignment.

Life Planning Assignment

Spring 2019

MSIE Department

Requirement
You will be required to create a brief (15 min) Power Point Presentation showing the results of your Life planning Efforts and be prepared to present it on April 10th in class if selected. You will be required to submit the presentations on Blackboard. The selection for doing the oral presentation in class will be random and will have the advantage of earning extra points on your grade for the assignment. Presenters should provide a hardcopy of the presentation to the professor.

Presentation guidelines
The Presentation should include as a minimum
A slide on your Life values, Goals, and Major Accomplishment,
A slide on your Life Integrated Master Plan (IMP),
A slide on your Financial Plan, and
A Slide on your Career Plan.

Presentation guidelines
You should be prepared to answer questions for the class and professor about your plans.
You do not have to use actual financial data if you are uncomfortable doing so but your data should be somewhat realistic to make the outcome a useful plan for you to take away and employ in the future.

Life Plan Exercise

Mike Franklin

IE6305, Spring 2014

Life Plan – Values & GoalsLife Plan – Values & Goals

• Values

– Trusting, abiding, and glorifying Jesus Christ in every area of my life

– Leaving a spiritual legacy

– Strong family connections

– Career and influence on products I design and support to protect the

American warfighter

– Education and the avenues it has opened

– Financial resources and the ability to pay for both daughters college

and wedding expenses

• Goals

– Graduate with a Masters Degree; potentially pursue 2nd Masters Degree

– Fund both daughter’s through a state college 4 year degree

– Fund both daughter’s weddings

– Buy land before retirement and build dream house

– Die with no regrets (faith/family/career)

Quicken AnalysisQuicken Analysis

• About Me (as modeled):

– Married, 2 dependents

– Combined annual salaries: $176K

– Current effective tax rate: 21%

– After-retirement tax rate: 21%

– Inflation rate: 4%

– Current savings: $32K

– Current investments: $246K

– Total assets: $330K

– Current yearly living expenses: $64K

� Includes weekly charity/tithe, medical and other insurances, living expenses, etc.

• Estimated to have $1.99M in investments at retirement

– Amount to subsequently increase to $2.5M ceiling as spouse retires 7 years

later and pension will supplement other retirement account until my

death

On Track for Savings Goals and Retirement

Quicken Exercise Lessons LearnedQuicken Exercise Lessons Learned

• Conducting this exercise has resulted in determination of the following
Life Plan needed alterations:

– College funds for both daughter’s are not supportable with standard bi-monthly

savings account deposits (@ 0.75% ROR)

� Contributions to independent savings accounts have been temporarily increased to

support end goal, and;

� An alternate college planning vehicle is being explored to

replace current savings account methodology

� Section 529 Account

� Custodial Account (AGMA/UTMA)

� Coverdell Education Savings Account

– Wedding fund bi-monthly contributions for both daughter’s were not sufficient

for estimated costs for a ‘sufficient’ (as defined by spouse) wedding a quarter of

a century away

� Original goal of $20K/daughter has been increased to $50K/daughter

– 401K was being ‘Maxed-out’ and was reduced to employer match with residual

funds directed into a brokerage account

� Reduce tax-deferred dollars to reduce federal tax balloon payment at retirement

Comparing Various
529 Products from

Several Companies

Baseline Life Plan – AnalysisBaseline Life Plan – Analysis

• Planned life expectancy: 82 years old

– (history of family cholesterol issues but actively managing and monitoring)

• Planned work expectancy: 2000-2041

• Planned retirement date: 11/2041 (Age 65)

– Number of years in retirement: 1

• Net worth at retirement: $1.99M

• Net worth at death: $~2.5M

• Investment Returns:

– My tax-deferred accounts: Before retirement: 7% After retirement: 7%

– Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%

– All other accounts: Before retirement: 0.75% After retirement: 0.75%

• Planned Living expenses:

– Before Retirement and prior to children completing 4 year college degree: $64.3K

– Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K (today’s dollars)

• Planned College expenses:

– Total Cost: $84K per daughter (today’s dollars, 6%/yr college inflation rate used in model)

• Planned Special expenses:

– Prior to exercise was: $20,000 per daughter

– After exercise and what results are now based upon: now: $50,000 per daughter

Financial plans support life plan adequately

LIFE VALUES, GOALS, MAJOR ACCOMPLISHMENTS

1976

-80
1980-1990

Biology

Various Part Time
Jobs

Faith

Birth

Remaining Life

1990-2000 2000-2010 2010-2020 2020-2030 2030-2040 2040-2050 2050-2060 2060-2070
2070

-74

My EducationVaultModel Updates

My Career

Family

Estimated Death

Expended Life

Accepted Jesus as Savior Ascend into Heaven

Biology

Calvary Bap. Garland
Cent.Bap.

C.S.
1st Arl. 1st Colleyville

Met Spouse

Absent

Retire @ 65

Public School H.S. College Continuous Education through Corporation Initiatives

Graduated High School Graduated College B.S. IE Graduate M.S. Engr. Mgmt

Married Spouse

1st Child Born

1st Child
College Starts

2nd Child College
Starts

1st Child
Wedding

2nd Child
Wedding

Program Management

NASA

Lockheed Martin LLLL

Various Part
Time Jobs

Spouse’s EducationVault

Spouse’s Career

Retire @ 65

Public School H.S. College Grad. S. Continuous Education through Corporation Initiatives

Graduated High School

NICU RN Pediatric Nurse Practitioner

Cook
Children’s

John Peter Smith Health System

DwellingsDream Home Mortgage (if required)

1st Home Purchased

Sys. Safety Engr.

Build Dream
Home w/ Land

Pay off Dream
Home

Mortgage

Bedford Home Mortgage

Refinanced to 15yr @ 2.75%

2nd Home Purchased

Graduated Undergrad PRN

Graduated Masters PNP

2nd Child Born

Grad. S.

Lead Adult Bible Fellowship

Ordinated as Deacon

Director

Enterprise V.P.

Spouse’s
Estimated Death

Pay off Bedford
Home Mortgage

Detailed Career Plan

2000-2005 2005-2010 2010-2015 2015-2020 2020-2025 2025-2030 2030-2035 2035-2040 2040-2045

EducationVaultModel Updates Continuous Education through Corporation Initiatives

Graduated College B.S. IE Graduate M.S. Engr. Management

Began work @ NASA

Robotics SR&QA Lead for ISS

Grad. School

2000-2005

Program Management

Sys. Safety Engr. Asc. MLRS Programs

Sys. Safety Engr. Senior PAC-3 Programs

Sys. Safety Engr. PAC-3 Programs

Promoted to LM Level 5 Engineer

Promoted to LM Level 4 Engineer

Promoted to LM Level 3 Engineer

Promoted to LM Level 2 Engineer

Began work @ Lockheed Martin

Director

Enterprise V.P.

Sys. Safety Engr. Staff PAC-3 Programs

Program Management

Sys. Safety Engr. Sr. Staff A&MD Programs

Promoted to LM Level 6 Program Manager

Promoted to LM Level 7 Director

Promoted to LM Level 8 VP Retire @ 65

Baseline Life Integrated Master Plan (IMP)

1976
-80
1980-1990
Biology
Various Part Time
Jobs
Birth
Remaining Life
1990-2000 2000-2010 2010-2020 2020-2030 2030-2040 2040-2050 2050-2060 2060-2070
2070
-74
My EducationVaultModel Updates
My Career
Family
Estimated Death

Expended Life Biology

Retire @ 65
Public School H.S. College Continuous Education through Corporation Initiatives
Graduated High School Graduated College B.S. IE Graduate M.S. Engr. Mgmt
Married Spouse
1st Child Born
1st Child
College Starts
2nd Child College
Starts
1st Child
Wedding
2nd Child
Wedding
Program Management
NASA
Lockheed Martin LLLL
DwellingsDream Home Mortgage (if required)
1st Home Purchased
Sys. Safety Engr.
Build Dream
Home w/ Land
Pay off Dream
Home
Mortgage
Bedford Home Mortgage
Refinanced to 15yr @ 2.75%
2nd Home Purchased
2nd Child Born
Grad. S.

Director Enterprise V.P.

Spouse’s
Estimated Death

Pay off Bedford
Home Mortgage

Financial Highlights

• Portfolio value at retirement = $1.99M

• Current recurring savings for children’s

college and wedding expenses equal to

required target recommendation

• Existing mortgage settled in 2026, prior to

first child starting college

• Future dream house mortgage (if

required) begins after second child

finishes college

• Early retirement feasible, if desired at that

time

What If / Sensitivity

Analysis Summary

Perceived
Positive
Impacts

Baseline Plan 1: Lower
Retirement
Age (Age 62)

2: Incr. ROR to
Non Tax-Def.
Investments
(3%)

3: Live Longer
(Age 85)

4: Self Manage
401K Equities
(Annual ROR
of 15%)

Net Worth at
Retirement $1.99M $1.76M $2.0M

$1.99M
(No affect)

$6.9M

Net Worth at
Death $2.5M $2.4M $2.7M

$2.5M
(no affect)

$24.5M

Perceived
Negative
Impacts

Baseline Plan 5: Save More
(plus up 5%)

6: Increase
Inflation Rate
(from 4->5%)

7: Reduce
Cost of Future
Dream Home

8: Model a
Layoff

9: Early Death

Net Worth at
Retirement $1.99M $2.13M $1.59M

$1.99M
(No affect)

$1.39M N/A

Net Worth at
Death $2.5M $2.68M $1.8M

$2.5M
(no affect)

$1.87M $1.3M

Stacked
Impacts

Baseline Plan 10: Combine
Scenarios 2&5

11: Combine
Scenarios 1, 6,
& 8

12: Combine
Scenarios 6, 8,
& 9

Net Worth at
Retirement $1.99M $2.2M $1.0M N/A

Net Worth at
Death $2.5M $2.8M $1.3M $790K

Scenarios ModeledScenarios Modeled

Worst Case Scenario Modeled
Yields $790K @ Death

Best Case Realistic Scenario
Modeled Yields $2.2M @

Retirement and $2.8M @ Death

Sensitivity Analysis ConclusionsSensitivity Analysis Conclusions

• No one single ‘perceived negative (or positive) impact’ event
degrades life plan to an unacceptable level

• To achieve the best case stacked scenario modeled (#10), current
Capital One Savings accounts yielding 0.75% ROR is insufficient

– Other investment strategies with low to medium risk need to be explored

• If the worst case stacked scenario modeled (#12) does occur,
sufficient funds will be available to fully fund dependents college and

weddings and to provide a sufficient lifestyle for spouse until her

death

• Path forward Actions:

– Downselect and procure 529 product for each daughter

– Move Captial One General Savings into a brokerage account and

distribute current and future contributions into a diversified portfolio

Backup

What If Scenarios Details

What If Scenarios

Presumed Positive Impacts to Quality of Life

What If Scenario #1What If Scenario #1

• Scenario: Lower Retirement Age

– Planned life expectancy: 82 years old

– Planned work expectancy: 2000-2041

– Planned retirement date: 11/2039 (Age 62)

� Number of years in retirement: 20

– Net worth at retirement: $1.76M

– Net worth at death: $~2.4M

– Investment Returns:

� My tax-deferred accounts: Before retirement: 7% After retirement: 7%

� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%

� All other accounts: Before retirement: .75% After retirement: .75%

– Planned Living expenses:

� Before Retirement and prior to children completing 4 year college degree: $64.3K

� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K

– Planned College expenses:

� Total Cost: $84K per daughter

– Planned Special expenses:

� After exercise and what results are now based upon: now: $50,000 per daughter

Green Text Indicates Changed Variable or Affected Results

What If Scenario #2What If Scenario #2

• Scenario: Adjust Rate of Return
to All non Tax-Def. Investments

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041

– Planned retirement date: 11/2041 (Age 65)

� Number of years in retirement: 17

– Net worth at retirement: $2.0M

– Net worth at death: $~2.7M

– Investment Returns:
� My tax-deferred accounts: Before retirement: 7% After retirement: 7%
� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%

� All other accounts: Before retirement: 3% After retirement: 3%

– Planned Living expenses:
� Before Retirement and prior to children completing 4 year college degree: $64.3K
� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K – Planned College expenses: � Total Cost: $84K per daughter – Planned Special expenses: � After exercise and what results are now based upon: now: $50,000 per daughter Green Text Indicates Changed Variable or Affected Results

What If Scenario #3What If Scenario #3

• Scenario: Live Longer
– Planned life expectancy: 85 years old

– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 20

– Net worth at retirement: $1.99M

– Net worth at death: $~2.5M

– Investment Returns:
� My tax-deferred accounts: Before retirement: 7% After retirement: 7%
� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%
� All other accounts: Before retirement: .75% After retirement: .75%
– Planned Living expenses:
� Before Retirement and prior to children completing 4 year college degree: $64.3K
� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K – Planned College expenses: � Total Cost: $84K per daughter – Planned Special expenses: � After exercise and what results are now based upon: now: $50,000 per daughter Green Text Indicates Changed Variable or Affected Results

What If Scenario #4What If Scenario #4

• Scenario: Adjust Rate of Return
to Tax-Def. Investments

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17

– Net worth at retirement: $6.9M

– Net worth at death: $~24.5M

– Investment Returns:

� My tax-deferred accounts: Before retirement: 15% After retirement: 15%

� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%
� All other accounts: Before retirement: .75% After retirement: .75%
– Planned Living expenses:
� Before Retirement and prior to children completing 4 year college degree: $64.3K
� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K – Planned College expenses: � Total Cost: $84K per daughter – Planned Special expenses: � After exercise and what results are now based upon: now: $50,000 per daughter

This is the Wishful Thinking Scenario!

CY2013 401K Yielded Over
28% By Self Managing 35%

of Assets

Green Text Indicates Changed Variable or Affected Results

What If Scenarios

Presumed Negative Impacts to Quality of Life

What If Scenario #5What If Scenario #5

• Scenario: Save More
– (Plus up 5% Post Tax Dollars > Savings / Week)

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17

– Net worth at retirement: $2.13M

– Net worth at death: $~2.68M

What If Scenario #6What If Scenario #6

• Scenario: Increate Inflation Rate

– Inflation Rate Increased (4 -> 5%)

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17

– Net worth at retirement: $1.59M

– Net worth at death: $~1.8M

What If Scenario #7What If Scenario #7

• Scenario: Reduce Cost of Dream
Home & Future Loan

– Planned value of home from $750K -> $500K

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17
– Net worth at retirement: $1.99M
– Net worth at death: $~2.5M
– Investment Returns:
� My tax-deferred accounts: Before retirement: 7% After retirement: 7%
� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%
� All other accounts: Before retirement: .75% After retirement: .75%
– Planned Living expenses:
� Before Retirement and prior to children completing 4 year college degree: $64.3K
� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K – Planned College expenses: � Total Cost: $84K per daughter – Planned Special expenses: � After exercise and what results are now based upon: now: $50,000 per daughter Green Text Indicates Changed Variable or Affected Results

What If Scenario #8What If Scenario #8

• Scenario: Model a Layoff

– Assume layoff 1/1/2015, un-employed for 2 years,

re-employed with salary reduced to $85K on 1/1/2017

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17

– Net worth at retirement: $1.39M

– Net worth at death: $~1.87M

What If Scenario #9What If Scenario #9

• Scenario: Early Death

– Planned life expectancy: 55 years old

– Planned work expectancy: 2000-2032

– Planned retirement date: 11/2041 (Age 65)

� Number of years in retirement: 0

– Net worth at death: $1.3M

– Net worth at death + insurance payout: $1.6M

� Life Insurance currently at 4X qualified pay = $525K payout

– Net worth at spouse’s death with insurance: $~1.9M

Model w/o Life Insurance Model w/ Life Insurance

Green Text Indicates Changed Variable or Affected Results

What If Scenarios

Stacked Sensitivities

What If Scenario #10What If Scenario #10

• Scenario: Adjust Rate of Return
to All non Tax-Def. Investments

& Save More
– (Plus up 5% Post Tax Dollars > Savings / Week)

– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 17

– Net worth at retirement: $2.2M

– Net worth at death: $~2.8M

– Investment Returns:
� My tax-deferred accounts: Before retirement: 7% After retirement: 7%
� Spouse tax-deferred accounts: Before retirement: 7% After retirement: 7%
� All other accounts: Before retirement: 3% After retirement: 3%
– Planned Living expenses:
� Before Retirement and prior to children completing 4 year college degree: $64.3K
� Post mortgage settlement (CY2026) and children completing 4 year college degrees: <$75K – Planned College expenses: � Total Cost: $84K per daughter – Planned Special expenses: � After exercise and what results are now based upon: now: $50,000 per daughter Green Text Indicates Changed Variable or Affected Results

What If Scenario #11What If Scenario #11

• Scenario: Lower Retirement Age,
Increase Inflation Rate, & Model

a Layoff
– Inflation Rate Increased (4 -> 5%)

– Assume layoff 1/1/2015, un-employed for 2 years,
re-employed with salary reduced to $85K on 1/1/2017
– Planned life expectancy: 82 years old
– Planned work expectancy: 2000-2041
– Planned retirement date: 11/2039 (Age 62)
� Number of years in retirement: 20

– Net worth at retirement: $1.0M

– Net worth at death: $~1.3M

� After exercise and what results are now based upon: now: $50,000 per daughter
Green Text Indicates Changed Variable or Affected Results

What If Scenario #12What If Scenario #12

• Scenario: Increase Inflation Rate,
Model a Layoff, and Die Early

– Inflation Rate Increased (4 -> 5%)
– Assume layoff 1/1/2015, un-employed for 2 years,
re-employed with salary reduced to $85K on 1/1/2017
– Planned life expectancy: 55 years old
– Planned work expectancy: 2000-2032
– Planned retirement date: 11/2041 (Age 65)
� Number of years in retirement: 0

– Net worth at death: $790K

– Net worth at death + insurance payout: $1.2M

� Life Insurance currently at 4X qualified pay = $525K payout

– Net worth at spouse’s death with insurance: $~950K

Life Planning Assignment

Christian L. Estep

IE 6305, Spring 2019

My List of Personal Values & Goals

My Values

Honesty, Integrity, and Hard Work are core aspects to my personality and how I interact with others.

I deeply value the American characteristics of individuality, freedom, and personal responsibility.

I believe in the importance of formal education in the process of helping people to achieve their professional and career goals.

Maintaining strong family connections.

Having a strong relationship with God.

My Goals

Achieve financial freedom.

Graduate from UTA with a Masters in Engineering.

Become a Licensed Professional Engineer in the State of Texas.

Eventually retire with 1 million dollars in savings account.

Help my wife start her career as an Registered Nurse (RN) and work through to our retirement.

Have two children and fund their college through to their 1st Bachelors Degree.

In five years, get a high paying job as a Lead Designer and eventually become an Engineering Manager.

Quicken Analysis
Current Stats About Me
Married, Planning to start having children five years from now, (May, 2024).
Bachelor of Science Industrial Technology (BSIT) degree from The University of Texas – Permian Basin.
Master of Business Administration (MBA) with a concentration in Energy Business from The University of Texas – Permian Basin.
I currently work for a local Fort Worth oil and gas production equipment company as a CAD Engineering Designer. My wife currently works as a Pharmacy Technician.
Current Combined Salaries of $90,500 – My current salary of $58,500 and my wife’s salary of 32,000.
Future Expected Combined Salaries of $153,707 – Average Industrial Engineer Salary of $85,880 & Average Registered Nurse Salary of $67,827.
Current Savings of $20,000
Current Investments of $10,000
Combined Current Assets of Approximately $30,000
Current Living Expenses of $3,500 per month and a monthly budget of $6,961.

LIFE PLANNING WITH QUICKEN

THE CIRCLE
OF LIFE

Values:

Goals:
To complete master’s degree by 2019.
To get a job right after graduation.
To buy a car and a house in U.S.A.
To travel around the globe.
To become a President of a company around the age of 45.
To have more than $1M in savings by retirement.

How to start with Quicken?
Buy Quicken premier (Amazon ,best buy, eBay etc.)
Download Quicken and create account
Go to planning and click “Get Started”
Select cash or You can link your bank and credit card account5. Add your plan assumptions in Planning.
It will automatically show the results that your plan will work or you will get depleted.
If you want to change any thing, you can go to “change my assumptions” and do it.

Assumptions & Analysis:
Life expectancy : 75 years
Retirement age : 59 years
First job : mid-2019 (24 years)
Buying a car (estimated $30,000 by 2021)
Buying a house (estimated $200,000 by 2025)
Inflation rate : 3%
Travelling : $35,000
Savings : 35% of the salary

Assumptions & Analysis:
Number of years until retirement: 36 years.
Years in retirement : 16 years.
Savings at retirement is estimated to be : $1.3M (approx).
Starting salary : $80,000 yearly going up to $210,000 till retirement.
Living expense : $40,000/yearly.(Inflation rate 10% after 2035).

Analysis:

Life modeling results:

Integrated life master plan:

What If Scenarios

Scenario 1:
What if I live 5 years more(instead of age 75 to 80 years
I will still have enough funds to manage my expenses.

Scenario 2:
What if I get retired at the age of 54 instead of 59(5 years prior)?

I will have $1.1M instead of $1.3M at retirement.

Scenario 3:
What if we change our savings to 20% of salary yearly instead of 35%?

Our plan fails, we are depleted in the year 2025, 46 years before the end of our plan.

Inference:
The very first and the foremost thing learnt is “PLANNING IS ESSENTIAL”.
Have to get a job, as soon as possible, after graduation.
Monthly savings of 4099$ will be inching to fulfill the future goals.
Current expenses is $1000/ month and readjusted to 3300$ for future after analysis.(excluded inflation rate).
Few changes had to be made to my current life plans to accomplish my goals.
Things always don’t go as planned. So, HARD WORK is must.

THANK YOU 
ANY QUESTIONS?

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Life Planning Presentation ”

Get high-quality paper

NEW! AI matching with writer

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order