Personal Finance

Portfolio

Sample

Desired Degree

Reasons

1. I love nature and would enjoy learning about animals, plants, and humans.

2. I would benefit from learning about human biology before medical school

3. Biology encompasses a broad range of topics that would give me a solid foundation in many fields including medicine or teaching science.

Bachelors in Biology& Medical Degree

Desired Career

Specifications

1. They scan bones, muscles, and organs to diagnose and treat diseases and injuries.

2. Radiologists improve and save lives using x-rays, ultrasound, MRIs, CAT scans, and other imaging technology.

3. Radiology salary in Nashville, TN is $360,027, as of February 22, 2017

Doctor (Radiologist)

Radiologist Job Listing fromReason I liked this particular opening:

1. Bristol, TN is very close to Knoxville TN and

has a relative low cost of living compared to

larger cities where I could practice, and I

enjoy outdoor activities such as skiing and

hiking.

2. The opportunities at this Medical Center

are flexible since it serves private practice

and outpatient centers.

3. I would be able to gain many new skills from

this job because you do not have to be

skilled in all types of radiology (such as

mammography and Muscular-Skeletal

training).

Short-Term Financial Goal

S - I want to save up $500 exactly

M - $500 is quantifiable

A - I’m working a part-time job now and over the summer

R - I will be able to save up to $500 even working at minimum wage and spending some money on clothes/movies

T - There are about 4-5 months before I leave for college

Save up $500 in rainy day funds before I start college

Intermediate Financial Goal

S - Specifically, I’m saving up for a hybrid car in 5 years for after I graduate college

M - Getting a hybrid car is measurable

A - I will do work-study in college

R - I could save up enough money within reason to pay

T - Five years is adequate time to save up for a car

Saving to buy a hybrid car in five years

Long-Term Financial Goal

S - I’m specifically saving money for retirement, not for car, education, or some other purpose

M - The amount of money I put into my retirement plan is quantifiable

A - I plan to open an IRA and will also create a 401k once I start consistently working with an employer that matches

R - Putting just a little money into retirement every month is doable

T - I have a lifetime to save up for when I retire around 65 years

Save money for retirement in a 401(k) account

Monthly Budget$35,000 annual salary:

● $2,917 per month before tax● $2,333 after tax of 20%

Fixed expenses Cost

Rent - I need a place to live and this is a typical cost of renting a small apartment in Knoxville

$700

Insurance - I need life, health, car, and renter’s insurance to protect myself from financial loss(Premium for car insurance is $103.17 of that $180)

$180

Cell Phone Plan - Lycamobile’s phone plan for unlimited talk, text, and data is necessary because technology is central in today’s world

$23

Internet Bills - I need internet in the apartment to connect with society (for work, entertainment, etc)

$30

Savings - the rest of my income (approx 34%) will go to savings. (20% to emergency funds and 15% for retirement)

$800

Variable expenses Cost

Food - I will eat at home to reduce the cost of food and will only buy groceries

$250

Transportation (car repairs, gas, travel) - depends on gas prices, car condition, and if I’m taking any trips or not.

$50

Utilities (water & electricity) - Depends on water and electricity usage which are necessities in city life

$100

Entertainment (movies, music) - I’ll listen to Spotify and may watch movies depending on what’s in theaters/redbox

$50

Miscellaneous (doctor visits, gifts, personal care, clothes) - Christmas and birthday gifts, personal hygiene products, and clothes are important but do not need to be purchased very often

$150

Fixed Costs Total: $1733 Variable Costs Total: $600

MONEY Checking Account (for teens)

● Free Debit Card

● No fees or minimums

● Free Allpoint® ATMs

● Annual Percentage Yield (APY) of 0.25%

I chose the MONEY account type for my checkings

account because as my first debit card, this account

had reasonable interest, abundant ATM locations,

free debit card, and online/mobile app banking and

transaction tracking which are convenient and

affordable as a student.

Financial Institution & Accounts: Capital One

360 Savings Account

● No fees

● No minimum balance

● Earns interest○ Variable Annual Percentage Yield (APY)

of 0.75%

I chose this savings account for its lack of fees, its

reasonable interest rate, and its online tracking

website. I also have a loyalty to Capital One since I

opened my first checkings account with it.

I chose to use Capital One due to its lack of fees, easy access to ATMs, reasonable interest rates, and

student plans that I will be able to use as a high school and college student to ease myself into using debit

cards and checking accounts instead of handling cash.

Investing & Retirement$5000 to invest:

● Vanguard Total Stock Index (Mutual Fund) -

$2000○ Chosen due to its diversification to reduce

risk (medium return), invests in blue chip companies

● Google Stock (Stock) - $2000○ chosen due to its risky nature and higher

return potential since technology and Google are thriving in the modern world

● Vanguard Total Bond Index (Mutual Fund) -

$1000○ chosen due to its low risk and steady return

15% Percent of income per month that will go into

retirement (shown in monthly budget)

Factors to consider when planning for retirement

The tax advantages for various retirement accounts

should be considered when planning for retirement in

addition to other factors such as net worth (including

real estate assets and debts that still need to be paid

off), income (from Social Security), expenses required

for the desired standard of living, and future costs of health care. These factors should all be taken into

account when determining how much money to save

for retirement and in which accounts.

Credit Card - Discover it® for Students

Benefits:

● No Annual Fee

● offers a competitive 5% cashback on rotating categories such as gas

stations, restaurants, Amazon.com, wholesale clubs (capped at $1,500 in

spending each quarter) and 1% cash back on all other purchases.

● Discover will double all the cash back you've earned during the first year

● $20 cash back each school year your GPA is 3.0 or higher for up to 5 years

● rewards never expire

Costs:● 0% intro APR on purchases for 6 months, then the

standard variable purchase APR of 13.74% - 22.74%.

● Annual Fee $0

● Late Payment Fee: None the first time you pay late.

After that, up to $37.

● Balance Transfer = 3% of the amount of each transfer

.

Why I Chose This Card

I chose this card because it is made especially for students (and has rewards for maintaining a high GPA), but still has the cash back benefits that adults get. Five percent is very high for cash back and they also match your cash back during the first year, which is a transparent attempt to lure in new customers but is nonetheless a very valuable deal. There is also no annual fee, which is a bonus.

Student Loan ProfileHarvard University● $63,025 per year for tuition, room, board, and fees combined● After scholarship money, I will pay $229,600 for my four years

Using a 15 year loan term, my monthly loan payment would be $2,038.12

I selected a 15 year loan term because the standard loan term of 10 years is not long enough for me to earn back my cost of attendance, but after 8 years of medical school and residency, I will be able to earn a high enough salary as a doctor to repay my undergraduate loans and then move on to paying medical school

***My amazing parents are paying for my undergraduate education, so I did not adjust my monthly budget

Renting vs. OwningRenting Advantages

1. Do not need maintenance fees

2. Once the contract is signed, you

can stay for a year (usually)

3. No homeowner associated

costs

4. Mobility

5. No down payment or loan

Owning Advantages

1. A smart investment (appreciates)

2. Gain equity and ownership

3. Tax deductible mortgage interest

4. Can pass on property to future

generations

5. Customizable

Down Payment (20%): $40,726

15 Year Loan TermMonthly Payment of $1,196.03 Total Payment of $314,938.43

30 Year Loan TermMonthly Payment of $767.44Total Payment of $475,584.54

The Ultimate DecisionI would choose the 15 year loan term instead of the 30 year loan term because even though I would have to pay higher monthly payments, I would end up paying less in the long run and waste less money on compounded interest.

Buying a Home

House Address: 9839 Thunderbolt Way, Knoxville, TN 37923

Price: $203, 631

Features:3 Bedrooms2.5 Bathrooms1,650 square feet

My Yearly Income: $35,000Combined Income w/ Spouse: $70,000Purchasing Power: ~$140,000 to $210,000

Insurance● TN state law requires minimum bodily injury

liability ($25,000/$50,000) and minimum property damage liability ($15,000) for insurance

coverage

● The average rate for my zip code is $1,238 per year (or $103.17 per month)

● As a 22 year old, I would also need renter’s insurance to protect my personal belongings

inside the house I am temporarily living from risk

as well as Identity Theft Insurance just in case my

identity gets stolen as I begin to enter more

dangerous parts of the market with my new job,

visiting different stores, and renting different

houses and to protect me if I accidentally misplace

my purse or wallet.

Insurance is an important part of every financial

plan because it safeguards individuals against

unforeseen threats that would be difficult to

repay without the aid of an insurance company. It

lessens the financial loss caused by possible

damage, transfers that risk to the insurance

company, and helps prepare for the unexpected,

thereby giving customers peace of mind.

Summary & ReflectionPersonal Finance has taught me many concepts and skills about money that I have applied to my everyday

life this semester as I began working at my first job at Kroger. I put the interview and resume skills I had

practiced in class to good use, got hired, and have already been able to reach my short-term financial goal!

The budgeting techniques we learned in class will come in handy over the summer as I begin to manage my

money, and I also used all the factors about depository institutions, checking accounts, and interest to open

and manage my first checking account. I plan on applying my knowledge of retirement plans and tax forms to

open an IRA account soon and eventually begin making diversified investments because I’ve learned the

importance of saving money early to counteract inflation and take advantage of compound interest. I’ve also

learned about managing credit cards and found the card I plan to use in college. Dave Ramsey’s lessons have

been enjoyable and informative, and I’ve started to apply his debt snowball idea to my homework from

school (doing the smaller assignments first to gain momentum before tackling larger projects). The other

topics we learned in class (student loan, mortgage, and insurance) provided me some relief since not knowing

all the terminology was intimidating before I took this class, and fully understanding exactly how one paid

off these debts / premiums makes being an adult sound less scary than I had imagined. Learning all these

concepts has had a positive impact on my life and will hopefully keep me financially stable as I apply them to

living with a sense of financial responsibility!