Name: ______Date: ______
BM418/MBA620 Grading Suggestions
Table of Contents
Email address:
I. Introduction(Contents and Appearance): 3%
Old binder (-.5), hand written tabs (-.5), no paragraph on whowrote this Plan (-1.0),no picture (-1.0)?
II. Goals: 40%
No discussion on what does Heavenly Father wants you to be or do, or insufficient discussion, not detailed, specific, or complete?
No discussion of your top three major goals, or insufficient discussion, not detailed, not specific or complete?
No epitaph, no numbered pages?
AP: No short-term goals, not detailed, specific, or complete?
No medium-term goals (2-10 years),not detailed, specific?
No long-term goals (10-80 years),not detailed, specific?
III. Financial Statements: 3%
Nobalance sheets (-1.0), no income statements (-1.0), no
financial ratios (-1.0). Only one month of each (-.5)?
No comparisons and explanations for balance sheet (-.5),
income statement (-.5), or financial ratios (-.5)?
AP: No comments to improve in the future (IS,BS,FR) (-.5)?
IV. Budgets/Spending Plans**: 10%
By month (3). No cover sheet (-1.0),no one-year spending
Plan (-1.0), no differences with explanations (-.5)?
No forecast, actual, and differences with explanations
(-1.5), no use of Quicken, TT04, TT31 or other budgeting
Program for each month (-1.5)?
AP: No commentson how to do better in the future (-.5)?
V. Tax Planning*: 2%
NoFed and state tax forms (-.5), no strategies used last
year (-.5), no marginaloraverage tax rate (-.25 each)?
AP: No discuss offorms/strategies in the future (-.5)?
VI. Cash Management*: 2%
No current cash management framework (-.5), no rates on
savings/checking (-.5), no discussion of fees (-.25)?
AP: No discussion of cash management in the future (-.5)?
VII. Credit Cards*: 3%
No type of credit card user(-.5), no chart of interest rates
Fees and calculations (-1.0)?
AP: No comment on what to improve credit card use (-.5)?
VIII. Credit Reports and Credit Score*: 3%
No cover letter (-2.0), no credit report (-.5), nocredit score
(-.5), not checked to make sure correct (-.5)?
AP: No comments to improve yourcredit score (-.5)?
Note: Yellow tags indicate a section that needs to be regarded. Students can earn back ½ points lost by resubmitting for re-grading. If not handed in on time, only ¾ points.
IX. Student/Consumer Loans and Debt Reduction*: 2%
No list of consumer/mortgage/student loans (-.5), no
discussion of interest rates, costs, points/other fees (-.5)?
AP: No discussion of debt reduction views of future debt (-.5)?
X. Insurance Planning*: 5%
a. Life, b. Health, c. Disability, d. Auto, and e. Home
Owners/Renters. Answer should be (1 point for each):
No discussion of have it, need it, costs, coverage, and
Discounts (-.5 each)?
No CLUE report or comment (-.5), no health insurance
summary (-.5), no TT29 (-.5)?
AP: No discussion on should have coverage (-.5 each)?
XI. Money and Relationships: 5%
Did not fill out TT21 (-5.0)? Filled out exactly as written is
what is wanted. Not filled out completely (-1 to -4.0)?
XII. Investment Planning*: 15%
No TT05A copy (-10.0), expected return > 9% (-.5),
allocation inconsistent with risk (-.5), _()__ still in
document (-.5), asset percentages not add to 100% (-.5%),
does not include current investments (-.5), no mutual fund
sheets from data provider (-1.0 each—4 total), no TT27
(-1.0), no TT13 (-1.0)?
AP: No proposed investments and allocations (-5.0 total)?
XIII. Retirement Planning: 3%
No retirement planning strategy (-1.0), no TT6 Retirement
Planning spreadsheet(-1.0), no Social Security statement
(-1.0)?
AP: No retirement strategy and vehicles (-.5)?
XIV. Estate Planning: 2%
No comment on estate planning strategy (-.5)?
AP: No comment onestate planning strategy (-.5)?
XV. Wills: 2%
No cover sheet (-.5), no will and spouse’s will (-.5), no
TT14 Medical Advance Directives(-.5)?
XVI. Other Items:
Uses Quicken/Money/other computer software? (+0.5%)
Includes personal experiences to share with future classes?
AP: No service teaching assignments (assume not done)?
Overall Grade:
Other notes:
If there is no cover sheet for any section (-1.0)
* BM418 Students should have handed these in, if not ¾ score.
**BM418/MBA620 require first 2 months budget should be handed in before end of term. If not, ½ can be earned back for each budget (1.5 each).
Service Teaching (10 points each): No individual cover sheet (-3.0), no PowerPoints or other Plan (-2.0), no comments of results (-2.0).
Notes for Investment Plan(-.25 to -.50)
- Check the age and type of investor
- Conservative – age + 5-10% in bonds
- Moderate – age in bonds
- Aggressive – age – 5-10% in bonds
- Very aggressive – age – 15-20% in bonds
Expected return Stage 1: 7 – 8.5%
Expected return Stage 2: 6 – 7.5%
- Indent allocations
Stage 1 and 2 allocations
- Make sure they add to 100%
- Must have a minimum of 4 asset classes (diversification)
- Make sure have benchmarks with each asset class
Asset Allocation Strategy
- Check REIT percentage and bond percentage
TT27
- Does not have to match expected returns
TT13
- Must have individual fund names
- Must have asset classes and benchmarks
- Must have percentages for both taxable and retirement
Financial asset pages
- One asset per asset class minimum
- Make sure there are no loads
- Make sure expenses are low
- Keep turnover low (except for bonds)
- Ensure no style drift (a little is OK)
- Make sure international is not global (global includes US)
- Keep cash levels low (<1-3%)