Vous êtes sur la page 1sur 15

A financial plan is a comprehensive

evaluation of an investors current


and future financial state by using
currently known variables to predict
future cash flows, asset values and
withdrawal plans.
PURPOSE
The purpose of this plan is to advise
our client on how to achieve her life
goals through proper management of
her finances and investments, that will
yield a steady income throughout her
retirement life.
Name: Jane Doe
Age: 65
Income: 72,000
Investable Assets: $700,000 ($500,000 Rollover IRA, $200,000
taxable account)
Tax Bracket: 25%
Investment Profile: Income
Goal: Retirement Income
Situation: Recently Retired, needs to set up income portfolio
for Rollover IRA
A mutual fund is an investment fund
that raises fund from investors, pools
the money, and invests it in stocks,
bonds, and other investments.
Each investor owns a share of a fund
proportionate to the amount of his or
her investment
Mornings Sharpe
Category Fund Symbol Allocation Amount 5 yr. Return tar Exp. Ratio Beta Ratio St. Dev.

US Large Cap Fidelity S&P 500 Index FUSEX 5% 35,000.00 15.65 4 0.09 1 1.03 10.09

US Large Cap Clipper Fund CFIMX 5% 35,000.00 15.73 5 0.72 1.07 1.02 12.03

US Mid Cap Dreyfus Mid Cap PESPX 5% 35,000.00 14.61 4 0.51 1 0.9 10.95

US Small Cap Dreyfus Sm Cap Index DISSX 5% 35,000.00 15.78 4 0.51 1 0.8 13.73

Real Estate Cohen & Steers CSRSX 5% 35,000.00 9.81 4 0.96 0.97 0.46 13

International Large Oakmark Int'l OAKIX 10% 70,000.00 12.62 5 1.05 1.19 0.64 15.39

International Mid/Small Fidelity Int'l Sm/Mid Cap FISMX 0% - 14.67 5 1.34 0.82 1.38 10.07

Emerging Markets Baron Emerging Markets BEXFX 0% - 8.63 5 1.38 0.82 0.52 12.78

Multi-Sector Bond Pimco PONDX 7% 45,500.00 6.55 5 0.90 N/A* 2.23 2.41

Investment Grade Bond Muni Bond Ladder 29% 199,500.00 4.9 5 0.65 0.88 1.43 3.56

High Yield Bond Fidelity Capital & Income FAGIX 25% 175,000.00 7.86 5 0.73 0.89 1.07 5.75

Cash 5% 35,000.00

Total 100% 700,000.00


Income Portfolio
US Large Cap

US Large Cap

US Mid Cap

US Small Cap
5%, 5%
5%, 5%
5%, 5%
Real Estate
5%, 5%
25%, 25% 5%, 5% International Large

5%, 5%
International Mid/Small

10%, 10% Emerging Markets

0%, 0%
7%, 7% Multi-Sector Bond
29%, 29%
Investment Grade Bond

High Yield Bond

Cash
Diversification
Professional Management
Minimal transaction cost
Liquidity
Flexibility
Service
Avoidance of bad brokers
A bond is a loan; when you buy or invest in bonds, you
become a lender.
Bond ladder is a portfolio of fixed income securities in
which each security has a significantly different maturity date
Purpose is to minimize interest rate risk, increase liquidity
and diversify credit risk.
We used the bond ladder portfolio technique for our client
to help generate a stream of income and manage interest
rate risk.
Bond Maturity coupon Rating YTM Price Quantity Cost Annual pmt

WA Co. Lease Revenue 10/1/2018 3% AA3 1.34% 101.338 40 40535.20 $ 1,200.00

WA Co G.O 10/1/2019 5% AA2 1.67% 105.93 38 40253.40 $ 1,900.00

Univ of UT Gen 8/1/2020 5% AA+ 1.63% 108.684 35 38039.40 $ 1,750.00

UT Co Hospital Rev 5/15/2021 2.25% AA1 1.70% 103.448 40 41379.20 $ 900.00

Weber State Rev 4/1/2022 5.00% AA 1.80% 113.205 25 28301.25 $ 1,250.00

Spanish Fork 4/15/2022 5.00% AA- 1.81% 113.313 10 11331.30 $ 500.00

Total 1.66% 199839.75 $ 7,500.00


45000.00

40000.00

35000.00

30000.00

25000.00

20000.00

15000.00

10000.00

5000.00

0.00
1 2 3 4 5 6
Value Interest-pmt
Better control over exposure to
interest rate risk
Predictable cash flow
Opportunity to help manage an
ever-changing interest rate
environment
In conclusion, the process of
planning allows our client to see
where she stand financially and
determine what steps she must take
to reach her goals.
THANK YOU
QUESTIONS
www.investopedia .com
www.fidelity.com
Personal Finance Turning Money into Wealth
by Arthur Keown