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Single Professional
This individual is a single 30-year-old who worked his way through school as a handyman, is totally jazzed about his first major investment — a two-story fixer upper. With a modest budget in mind, he decides he can afford to remodel one room every 12 months. Not comfortable with the idea of hosting dinner events, he often eats out and his entertainment costs are high. He enjoys the luxury of high tech stereo equipment and has installed a high end in-house system. Image is important to him so driving an up-to-date model SUV is a must. Working in the banking industry securing a long term strong financial position is a definite goal.
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| AGE: 35 |
YEARS TO FINANCIAL FREEDOM: 25 |
| HOUSE HOLD INCOME: $45,000 |
| ASSETS: |
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Registered funds: (RRSP, 401K, etc.) |
$ |
10,000 |
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Non-Registered funds: (Cash, Stocks, Bonds, G.I.C.s/CDs) |
$ |
15,000 |
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Real Estate Equity: |
$ |
25,000 |
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Business Retained Earnings: |
$ |
0 |
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TOTAL ASSETS: |
$ |
50,000 |
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| PROJECTED GROWTH |
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Total asset growth Years: 20 x 10% Interest/Yr = |
$ |
541,735 |
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Annual growth@ 10% Interest/Yr = |
$ |
54,174 |
FUTURE INCOME NEEDED FOR FINANCIAL FREEDOM |
$ |
94,220 |
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Calculation based on current income projected at a 3% rate of inflation |
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| PROJECTED RESULTS PRODUCE SHORTFALL – FINANCIAL OBJECTIVE NOT MET |
$ |
40,046 |
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| Options to meet financial goals: |
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1. INCREASE INVESTMENT DOLLARS (save more)
2. ESTABLISH A HIGHER RETURN (possibly risk more)
3. EXTEND TIME FRAME TO REACH FINANCIAL FREEDOM (work more)
4. DOWNGRADE LIFESTYLE (spend less)
5. JOIN THE INSTITUTE FOR FINANCIAL LEARNING (discover more) |
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