Sunday, October 16, 2005

Finance 301 Excel project #2

Your next excel project is to apply what we have learned in a corporate finance setting and apply it to our personal life.

So you will need to project out earnings, expenses, savings, and investments over the rest of your life.

This is not a project you want to wait until the last minute! It is Due Nov. 11th. I put an example (not a particularly explemary one, but an example none the less) on the 301 mainpage.

As a starting point, you will have to project out your earnings. Be sure to document where your numbers come from. This will involve some outside research.

For instance, why you think your stating salary is whatever you state it to be. may be a starting point in this. Similarly, for all expense items. For instance, if you plan on living in San Francisco or NYC do not tell me you think you will live on $400 a month rent.

Social Security income and expenses can be found online, but expect the taxs to go up and teh income to go down.

For investments, you will need to break it down into taxable and non taxable retirement accounts. And also realize your return is dependent on allocation, so Iwill need to see both. And again, do not make unrealistic assumptions such as I will invest in CDs and earn 7% above inflation.

The project is about 2/3rds excel. You will also have to give a write up of key assumptions, what could go right or wrong (i.e. what you should be worrying about financially) and what you can do to protect yourself. Finally it should contain a section on what you learned from the project. Total write up should be less than 4 pages (double spaced) plus one page of sources.

Again, it is due November 11th. Submission on both paper and electronically.

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