P e r s o n a l F i n a n c e P l a nPrepared for: CFA Society of PittsburghPrepared by: Michael C. SundbergDate: 13 March 2015

Introduction........................................................................................................................................................ 1

Current Situation............................................................................................................................................... 1

Start Date............................................................................................................................................................. 1

Career Path.......................................................................................................................................................... 1

Living Arrangement......................................................................................................................................... 1

Monthly Expenses............................................................................................................................................. 1

Goals...................................................................................................................................................................... 1

Year One Plan (May 1, 2015 – April 30, 2016)......................................................................................... 2

Year Three Plan (May 1, 2017 - April 30, 2018).....................................................................................4

Year Five Plan (May 1, 2019 - April 30, 2020).........................................................................................5

Appendix.............................................................................................................................................................. 6Exhibit 1............................................................................................................................................................................ 6Exhibit 2............................................................................................................................................................................ 6Exhibit 3............................................................................................................................................................................ 6Exhibit 4............................................................................................................................................................................ 7Exhibit 5............................................................................................................................................................................ 8Exhibit 6............................................................................................................................................................................ 8Exhibit 7............................................................................................................................................................................ 8Exhibit 8............................................................................................................................................................................ 9Exhibit 9............................................................................................................................................................................ 9Exhibit 10......................................................................................................................................................................... 9Exhibit 11....................................................................................................................................................................... 10Exhibit 12....................................................................................................................................................................... 10Exhibit 13....................................................................................................................................................................... 10Exhibit 14....................................................................................................................................................................... 11Exhibit 15....................................................................................................................................................................... 11Exhibit 16....................................................................................................................................................................... 11

Bibliography..................................................................................................................................................... 12

Introduction I created this personal financial plan to begin preparing for the financial realities of life after college and take ownership of my financial future. In detail, I planned out my financial expectation in year one, three, and five post graduation. Throughout my college education, I had the privilege of being taught the essentials of financial planning. With the help of my professors’ input and guidance, I have been able to apply all of my knowledge into developing this personal financial plan.

Current SituationI am a student at Penn State Erie, The Behrend College. I will be graduating on May 8, 2015, with a degree in Finance. Post graduation, I will be moving from Erie, PA to Glendale, AZ.

Start Date To assess my financial future, I deemed May 1, 2015 to be my starting date in years one, three, and five.

Career Path I have chosen to pursue a career with AXA Advisors and will start preparing for my insurance licensing tests at the beginning of June 2015. The length of time it will take to receive my licenses will be 4-5 months. During this time, I will not be paid by AXA. To provide a source of income, I have accepted a bank teller position and an assistant coaching job in the local area of Glendale, AZ. Exhibit 1 shows the income projections for each job.

Living Arrangement Upon graduation, I will be moving into a condominium with my girlfriend. I am very fortunate that my girlfriend’s parents have purchased the condominium, in Glendale, for us to live in. Since it is paid for, we do not need to pay rent. We will assume the responsibility of utilities and the homeowners association (HOA) fees. This cuts my living costs and will allow excess money for other expenses.

Monthly ExpensesI broke down my expenses into ten separate categories: home, daily living, transportation, entertainment, vacations/travel, recreation, dues/subscriptions, personal, financial obligations, and miscellaneous payments. Under each category, there follows a relative list of expenses.

GoalsI have thought out financial and personal goals I would like to strive for in the short and long–term. In determining what goals to set, I weighed out a majority of my unneeded wants and focused more on my essential needs for living.

Short-Term Goals1. Budget2. Save/Set up emergency fund3. Purchase my first car

Long-Term Goals1. Pay off student Loan 2. Save for engagement ring3. Stay out of debt

Year One Plan (May 1, 2015 – April 30, 2016)I. Banking Accounts (as of May 1, 2015)

a. All accounts held with Northwest Savings Banki. Checking account balance: $100

ii. Statement Savings: $1,000iii. Passbook Savings: $5,000

II. Income Projectionsa. Average monthly income of $4,363.58 (Exhibit 2)

i. Total income projection for year one is $52,363, respectivelyb. Monthly income after taxes of $3,389.50 (Exhibit 3)

i. Total annual income after taxes of $40,674.05III. Average Monthly Expenses (Exhibit 4)

i. Home: $382.501. HOA and utilities fees: $3502. Home repairs: assumed $303. Gardens: $10 - $20 depending on time of year

ii. Daily Living: $404.831. Groceries: $215 (Exhibit 5)2. Dry cleaning every other month: $15.50 (Exhibit 5)3. Dinning out: $200-$250

a. Based on past year expenses iii. Transportation: $370.22

1. Car Payment: $87 (Exhibit 6)a. Used 2003 Volvo S60 2.4Tb. Price: $4,988c. Down Payment: $1,500

2. Progressive Auto Insurance Quote: $603. Gas/Fuel: $137.97 (Exhibit 7)4. Repairs and inspections: $1005. Detailing/Parking: $10

iv. Entertainment: $57v. Vacations/Travel: $60 (average of annual expense)

1. Annual Expense: $720a. Plane Tickets: $350 - $400 round trip

vi. Recreation: $351. Gym Fee

vii. Dues/Subscriptions: $581. Newspaper: $282. Internet Connection: $253. Charity: $5

viii. Personal: $324.781. Roth 401k: $179.34 (Exhibit 8)

a. Contributions start in October2. Emergency Fund: $100

a. Start contributions in October

3. Roth IRA: No contributions for the first year4. Engagement Ring: $50

a. Start saving for in January of 20165. Savings: $100

a. Also starting contributions in October6. Other Personal Expenses: $100-$300 (clothing, gifts, barber, and

books)ix. Financial Obligations: $1,063.56

1. Student Loan: $214.78 (Exhibit 9)2. Taxes: $974.07 (Exhibit 3)

x. Misc. Payments: $10-$20 IV. Personal Budget (Exhibit 10)

a. Average monthly income: $4,446.92b. Average monthly expenses: $2,770.89c. Cash Extra: $1,676.03

Year Three Plan (May 1, 2017 - April 30, 2018) I. Income Projections

a. AXA Advisorsi. With hard work and dedication, my monthly income will increase 30% to

$3,885.70 b. Assistant Basketball Coach

i. Assuming 15% increase in monthly salary to $2,300 c. Bank Teller

i. I will not be working at a bank by year three1. Initial reason for working at a bank is to help cover expenses until

AXA income begins and it presents a great building block to meet potential clients for my advisor career

d. Average monthly income of $5,035.70 (Exhibit 11)i. Total income projection for year three is $60,428.40, respectively

e. Monthly income after taxes of $3,817.11 (Exhibit 12)i. Total annual income after taxes of $45,805.32

II. Average Monthly Expenses i. Home: $382.50

1. Same living arrangement as in year one ii. Daily Living: $419.42

1. Groceries: $220iii. Transportation: $442.36

1. Car Payment: $87 2. Insurance: $603. Gas/Fuel: $210.11

iv. Entertainment: $59.50v. Vacations/Travel: $92.50 (average of annual expense)

1. Annual Expense: $1,110vi. Recreation: $47.50

vii. Dues/Subscriptions: $63viii. Personal: $797.69

1. Roth 401k: $310.86 a. 8% of monthly income

2. Emergency Fund: $1003. Roth IRA: $1004. Engagement Ring: $1005. Savings: $1006. Other Personal Expenses: $100-$300

ix. Financial Obligations: $1,308.081. Student Loan: $214.78 2. Taxes: $1,218.59 (Exhibit 12)

III. Personal Budget (Exhibit 13)a. Average monthly income: $5,077.37b. Average Monthly Expenses: $3,627.55c. Cash Extra: $1,449.82

Year Five Plan (May 1, 2019 - April 30, 2020)I. Income Projections

a. AXA Advisorsi. By year five, I plan to have a stable career with AXA and my monthly income

will increase 55% to $6,022.84 b. Assistant Basketball Coach

i. Assuming 25% increase in monthly salary to $2,875 c. Average monthly income of $7,460.34 (Exhibit 14)

i. Total income projection for year five is $89,524.02, respectivelyd. Monthly income after taxes of $5,347.30 (Exhibit 15)

i. Total annual income after taxes of $64,167.57II. Average Monthly Expenses

i. Home: $502.501. Making apartment improvements

ii. Daily Living: $434.421. Groceries: $235

iii. Transportation: $434.301. Car Payment: $0 (Paid off in 2018) 2. Insurance: $603. Gas/Fuel: $245.13

iv. Entertainment: $59.50v. Vacations/Travel: $96.67 (average of annual expense)

1. Annual Expense: $1,160vi. Recreation: $47.50

vii. Dues/Subscriptions: $73viii. Personal: $1,297.45

1. Roth 401k: $602.28 a. 10% of monthly income

2. Emergency Fund: $1003. Roth IRA: $2004. Engagement Ring: $2005. Savings: $1006. Other Personal Expenses: $100-$300

ix. Financial Obligations: $2,238.321. Student Loan: $214.78 (Last payment in November 2019)2. Taxes: $2,113.03 (Exhibit 15)

III. Personal Budget (Exhibit 16)a. Average monthly income: $7,502b. Average monthly expenses: $5,198.64c. Cash Extra: $2,303.36

S u n d b e r g | 9

Appendix

Year One Exhibit 1

Exhibit 2

Exhibit 3

S u n d b e r g | 10

Exhibit 4

S u n d b e r g | 11

Exhibit 5

Exhibit 6

Exhibit 7

S u n d b e r g | 12

Exhibit 8

Exhibit 9

Exhibit 10

S u n d b e r g | 13

Year Three

Exhibit 11

Exhibit 12

Exhibit 13

S u n d b e r g | 14

Year Five

Exhibit 14

Exhibit 15

Exhibit 16

S u n d b e r g | 15

Bibliography

"Arizona State Tax Calculator 2015/2016 | Online Tax Calculator." US Tax Calculator. Accessed March 1,

2015. http://www.taxformcalculator.com/state_tax/arizona.html.

"AXA Advisors Salaries." Glassdoor. Accessed March 1, 2015. http://www.glassdoor.com/Salary/AXA-

Advisors-Salaries.

Caldwell, Miriam. "Five Financial Goals - New Year Resolutions." About Money. Accessed March 1,

2015. http://moneyfor20s.about.com/.

"Progressive Auto Insurance and Mobile." Progressive Auto Insurance And Mobile. Accessed March 2,

2015. https://autoinsurance1.progressivedirect.com.

"2003 Volvo S60 2.4T." Cars. Accessed March 1, 2015. http://www.cars.com/.