EC 104 Personal Financial Planning                           

This assignment must be typed, 1.5 spacing, 12 point font. 

Determine two goals (one short term and one long term) that you wish to achieve(you can make up fictional ones if you have privacy concerns).   Explain how you will achieve them and what length of time you estimate it will take for you to do so.   What will be the biggest obstacle in your efforts to achieve these goals?

1.      You are going out to celebrate your upcoming graduation and want to make sure that you don’t spend too much money.  Another friend tells you that he keeps his spending in check by taking out money ahead of time using a credit card at his bank.  You tell him this is a bad idea and he tells you it isn’t. After all, he limits his spending. Who’s right?  Explain.

2.      Suppose you have $10,000 in funds that you wish to invest in the stock market.   What type(blue chip, etc)  of stocks would you purchase(percentage wise 10%, etc) in order to create a diverse portfolio?  Explain why you chose these allocation amounts.

3.      Go to www.valueline.com and look under the Dow complimentary tab on the left.  Choose a stock and tell me whether you would buy this stock or not.  (There are 30 to choose from.)  What things did you look at and how does it fit into your financial planning goals?

4.      Explain when and if you should get the following types of insurance:

a.      Life insurance (when and how much?)

b.     Auto insurance

c.      Long term disability

d.     Long term care

e.     Home insurance