Financial Planning Research Project

FINANCIAL PLANNING PROJECT (120 POINTS)

EDUCATIONAL PLANNING

DUE: March 9, 2015

For this project, you will develop an analysis that analyzes the expected future costs of college and educates the client on the primary topics covered in class. As indicated in class, the analysis shall be conducted for a family with at least one child under the age of 10. If your client has more than one child, you are expected to create your analysis so that it includes all of the children within the family. Please see me if this pertains to your situation.

Required Steps:

1.Develop a questionnaire that can be used to gather the necessary information needed to complete the

project. You must have a minimum of 10 questions typed on your questionnaire.

2.Interview your client and gather appropriate research on:

a.Three colleges/universities where they would be interested in sending their child.

b.Determine the package (i.e. – tuition, books, meal plans, living expenses, fees, transportation, etc.) of costs that the client would like information on. Please document all research and provide this information to your client within your analysis. A Works Cited is expected to be included at the end of the project.

c.Determine if the client has any money already set aside for their child(ren). Please remember that you do not need the answer to this question to complete the project.

3.Build a model that includes three separate scenarios for each university. For example, your model

should include a Best Case, Most Likely, and Worst Case Scenario for each school. You MUST

include all three scenarios for each university on one page. Remember, the main difference between each scenario lies in the expected after-tax annualized rate of return that the client would need to realize during the timeframe presented within the model. You may wish to discuss this with the client prior to creating your model.

4.In a maximum five-page block-style letter, you shall:

a.Provide an introductory paragraph thanking the client for allowing you the opportunity to use their family for your project. Additionally, provide a thesis in the last sentence that guides the reader through your analysis.

b.In your body paragraphs, illustrate your findings outlined in the model. Be sure to carefully explain each item discussed so that you do not confuse your client. Also, you will only need to clearly explain one of the three scenarios; not all three. Please remember to explain your findings in language that your client can easily understand. Communicate to express, not to impress.

c.All letters should appear in Block-style format, stapled, with appropriate 1” margins and single-spacing. Remember to double-space between paragraphs. Your three scenarios/models will be the last three pages of the letter. Letters that are longer than five pages will NOT be evaluated and will receive a zero for the final grade. Please be clear, concise, and to the point in the drafting of your letter.

4.Four-page Education Funding Magazine

a.Within your magazine, you are expected to present your client with information that they can use as they move forward with their college planning efforts. Information provided should include a discussion on the following topics:

Grants (Pell Grants & Supplemental Educational Opportunity Grants)
Loans (Perkins, Stafford, PLUS, Second Mortgages & HELOCS). This section should clearly present a discussion on the difference between subsidized and unsubsidized loans.
Custodial Accounts including UGMAs/UTMAs
Trusts that can be used for educational purposes and when they should be considered
Individual Retirement Accounts (Traditional, Roth, Coverdell ESAs)
529 Plans (both Prepaid & Investment)
Free Application for Federal Student Aid (FAFSA)
Taxation (Student Loan Interest Deductibility, Education Credits, Placing assets in the child’s name, Gifts for Educational Purposes and the tax ramifications of such gifts, and the Kiddie Tax Law).

b.A minimum of 2 illustrations are required. Please do not make the illustrations so large that they limit your ability to present information on the main informational points presented in the previous section. The illustrations can be on anything related to education funding. Remember, a picture is worth a 1,000 words. Illustrations can be very effective in either comparing or contrasting the different funding strategies.

c.In addition to the letter and magazine, please include your questionnaire that was designed to gather information in your initial meeting with the client. The questionnaire must be typed and include all of your client’s responses.

d.Evaluation criteria:33% of your evaluation will be based on the accuracy of your model, 33% will be based on the appearance, accuracy, and effectiveness of your letter, with the remaining 33% of the grade based on the level of information provided within your magazine.

g.All projects are due Monday, March 9.

Plagiarism will be carefully checked on this project. Internal documentation is required anywhere you use researched information. This documentation will be expected to be included within your Works Cited. YOU ARE REQUIRED TO USE A MINIMUM OF 15 SOURCES FOR THIS PROJECT. If you are suspected of committing plagiarism, you will receive a ZERO on the assignment. Think about it before you act…

You will do many research projects similar to this in college. This experience will give you a glimpse of what will be expected of you in the next few years.

Good Luck! If you have any questions, please do not wait until March 6 to ask them.