Education Module. James P. Conway and Cathy Conway Prepared by Tom Clancy

Size: px

Start display at page:

Download "Education Module. James P. Conway and Cathy Conway Prepared by Tom Clancy"

Beverley Gibbs
5 years ago
Views:

1 Education Module James P. Conway and Cathy Conway Prepared by Tom Clancy

2 12/3/2009 Mr. Conway and Mrs. Conway Dear James P., I have prepared this report for you based on what you ve told me about your finances and our time spent together. This report is designed to give you an overview of the basic aspects of your financial future. It will help you see your current financial situation clearly and evaluate how well your current Present Position will allow you to achieve your goals. You should carefully review the assumptions underlying this analysis. While an exact prediction of your future is impossible, assumptions must be used in order to provide a look into the future. You have provided and agreed to the use of the assumptions contained herein. Give careful consideration to your assumed rates of inflation, hypothetical asset returns, as well as all other component variables since they all play a major role in determining the outcome of our hypothetical analysis. Therefore, it is important that you keep track of your progress. Although some of the material in this report is directly based on current tax assumptions, understanding the tax law requires professional assistance. The importance of professional tax and legal advice cannot be overstated. Since the Wealth In Motion software does not provide any legal or tax advice, I strongly urge you to consult with your own attorney or tax advisor regarding these issues and your personal situation. Please take the time to understand the many aspects of this analysis, especially your Present Position, and any of your financial aspirations as they may be addressed in our work together. Feel free to contact me to continue to discuss any of your financial needs so that I may help you to better understand the choices and options that are present before you. I look forward to meeting with you again. Sincerely, Tom Clancy Page 2 of 8

3 STUDENT Student College First Name: Student College Name: Last Name: Private College Date of Birth: 01/01/1999 College Start Age: 18 College End Age: 22 Client's Tax Rate: 25.0% Annual Tuition Annual Tuition: Inflation: 3.0% Increase: 4.0% Account Balance: Contribution End Age: 7.0% Tax Advantage Savings Education IRA Section 529 Plan Account Balance: Account Balance: $36,000 $5,000 Contribution End Age: Contribution End Age: 45 Other Resources Flow Name Amount Start Age Num Years Incr. Rate Scholarships % Part-Time Job % Gifts % Grants and Loans % Other Income % Other Income % Other Annual Costs Expense Name Amount Per Month Auto Books Clothing Food Mortgage Rent Car Insurance/Gas Miscellaneous Page 3 of 8

4 JOHN CONWAY Student College First Name: John College Name: Last Name: Conway University of Virginia Date of Birth: 01/01/2002 College Start Age: 18 College End Age: 22 Client's Tax Rate: 25.0% Annual Tuition Annual Tuition: $32,854 Inflation: 3.0% Increase: 4.0% Account Balance: Contribution End Age: 7.0% Tax Advantage Savings Education IRA Section 529 Plan Account Balance: Account Balance: Contribution End Age: Contribution End Age: Other Resources Flow Name Amount Start Age Num Years Incr. Rate Scholarships % Part-Time Job % Gifts % Grants and Loans % Other Income % Other Income % Other Annual Costs Expense Name Amount Per Month Auto Books Clothing Food Mortgage Rent Car Insurance/Gas Miscellaneous Page 4 of 8

5 CATHY CONWAY Student College First Name: Cathy College Name: Last Name: Conway Boston University Date of Birth: 01/01/2005 College Start Age: 18 College End Age: 22 Client's Tax Rate: 25.0% Annual Tuition Annual Tuition: $44,272 Inflation: 3.0% Increase: 4.0% Account Balance: Contribution End Age: 7.0% Tax Advantage Savings Education IRA Section 529 Plan Account Balance: Account Balance: Contribution End Age: Contribution End Age: Other Resources Flow Name Amount Start Age Num Years Incr. Rate Scholarships % Part-Time Job % Gifts % Grants and Loans % Other Income % Other Income % Other Annual Costs Expense Name Amount Per Month Auto Books Clothing Food Mortgage Rent Car Insurance/Gas Miscellaneous Page 5 of 8

EDUCATION SAVINGS Tax Advantaged Savings Lost Opportunity Cost In the illustration above, the balances are projected for all of your education funding needs, given your stated savings pattern and the

6 EDUCATION SAVINGS Tax Advantaged Savings Lost Opportunity Cost In the illustration above, the balances are projected for all of your education funding needs, given your stated savings pattern and the expected future growth of those assets. The graph assumes the withdrawals to fund your education expenses will first be taken from the Tax-Advantaged accounts, and if additional withdrawals are required, any savings in Taxable accounts will be used. The schedule of withdrawals is shown below as an annual break down. Year Tax Advantaged Savings $365,471 $404,239 $445,611 $489,761 $484,803 $472,651 $457,961 $491,953 $535,528 $582,148 $131,768 $147,006 $163,285 $180,678 $221,740 $270,571 $322,439 $247,828 $218,241 $184,607 LOC $992,753 $964,919 $937,865 $2,139,944 $1,193,934 $1,160,459 $1,127,923 Page 6 of 8

EDUCATION INCOME Education Needs Other Income Savings Withdraws Shortfall This graph compares all your education funding needs to your expected funding resources during the years the student(s) is

7 EDUCATION INCOME Education Needs Other Income Savings Withdraws Shortfall This graph compares all your education funding needs to your expected funding resources during the years the student(s) is (are) in school. Funding resources are broken down among funds withdrawn from savings, and other funding sources expected to be available during those years to meet your education expenses. The data is presented as an annual break-down to aide in the understanding of exactly which years, if any, require more funding. Year Education Needs $4,602 $4,648 $4,695 $55,319 $57,389 $59,541 $138,443 $84,5 $87,904 $91,271 Other Income $4,602 $4,648 $4,695 Savings Withdraws $50,577 $52,600 $54,704 $94,695 $40,234 $42,782 $45,451 Shortfall $36,748 $37,432 $38,122 $38,820 Page 7 of 8

EDUCATION EXPENSE Education Other Expenses Cost of Living Taxes Not Funded Goals This graph compares all your education expense needs to your expected funding resources during the years the

8 EDUCATION EXPENSE Education Other Expenses Cost of Living Taxes Not Funded Goals This graph compares all your education expense needs to your expected funding resources during the years the student(s) is (are) in school. The data is presented as an annual break-down to aide in the understanding of exactly which years, if any, require more funding. Year Education $50,577 $52,600 $54,704 $133,557 $79,731 $82,921 $86,237 Other Expenses $4,602 $4,648 $4,695 $4,742 $4,789 $4,837 $4,885 $4,934 $4,983 $5,033 Cost of Living $21,003 $21,309 $21,601 Taxes $28,001 $28,569 $29,161 $30,035 $31,207 $32,492 $32,534 $31,712 $31,319 $30,840 Not Funded Goals Page 8 of 8

Prepared For: Charles Cameron and Mary Johnson. Prepared by: Brian Kobel Oltis Software LLC

Prepared For: Charles Cameron and Mary Johnson Prepared by: Brian Kobel Oltis Software LLC 4035 North St Tucson, AZ 85712 Email: bkobel@financelogix.com Disclosures Disclosures This Investment Analysis