Jimmy and Bethany have just returned from their honeymoon and are looking to establish financial goals for their future. They would like to own a home and have children but don't have clear goals beyond that. They have been encouraged by their parents to seek financial planning help but are unsure they can afford it. As their financial advisor, you would explain the five steps of financial planning to help them achieve their goals: evaluating their current situation, defining goals, developing an action plan, implementing it, and reviewing progress. You would identify short, medium, and long term goals like saving for a down payment, college funds, and retirement. Financial plans also need flexibility, liquidity, protection from risks, and to minimize taxes which relate to

2. Name:
Zeeshan Taimoor
Roll no:
18214954-015

4. Be a Financial Planner·-
Discussion Case 1
Jimmy, an accountant, and Bethany just returned from their honeymoon in the
Bahamas. They celebrated their marriage and the completion of Bethany's
M.B.A. program. They have been encouraged by their parents to establish some
personal and financial goals for their future. However, they do not know how to
set or achieve these goals. They know that they would like to own their own
home and have children, but those are the only goals they have considered.
Jimmy knows of a financial advisor who might be able to help with their
predicament, but they don't think they can afford professional help.

5. Questions
1. If you were serving as the couple's financial advisor, how would you explain the
five steps in the financial planning process and their importance to future financial
success?
2. What financial goals (short term, intermediate, and long term) would you
determine to be the most important to Jimmy and Bethany considering their current
life cycle stage? Support your answer. (Hint: See Worksheet 1 or Worksheet 2.)
3. What four common concerns should guide the development of their financial
plan? How do these relate to Principles 4, 5, and 7?
4. Why is Principle 10 the most important principle? Why is it equally relevant to
financial and career planning?

6. Q1: If you were serving as the couple's financial advisor, how would you
explain the five steps in the financial planning process and their importance to
future financial success?
1) Evaluate your Financial health:
What their current financial situation. How much money they make and how much
they spend as well as prepare personal balance sheet & Income statement to evaluate
how much they worth.
2) Define your financial goals:
i. Writing down personal financial goals.
ii. Attaching cost to each written goal.
iii. Determine when the money needed to accomplish the goal.

7. Continue…
3) Develop a plan of action:
A good plan of action has some characteristics...
i. Flexibility
ii. Liquidity
iii. Protection
iv. Minimization of taxes

8. Continue…
4) Implement the financial action plan:
It is important to carefully farmout the plan. we need to implement the action plan to
achieve goals.
Keep in mind that your financial plan is not the goal; it is the tool you use to achieve
your goals.
5) Review Your Progress, Reevaluate, and Revise Your Plan

9. Q2. What financial goals (short term, intermediate, and long term) would you
determine to be the most important to Jimmy and Bethany considering their
current life cycle stage?
1. Short term:
 Buy a television
 Taking a vacation
 Pay bills, Purchase health insurance
 Planning that take 1 year.

10. Continue…
2. Medium term:
 Save fund for college for an older child.
 Save for major home improvement.
 Save for Down payment on house.
 Pay Off outstanding Major debts.
 Finance a vacation (Wedding) etc.

11. Continue…
3. Long term
 Purchase second home for retirement.
 Create a large retirement fund.
 Start your Own business.

12. Q3. What four common concerns should guide the development of their
financial plan? How do these relate to Principles 4, 5, and 7?
1. Flexibility:
Financial plan must be flexible to respond to a change in situation of the life and
unexpected events like Loosing a job. A financial plan that doesn’t allow one to
access his/her money whenever required is not a good financial plan.
2. Liquidity:
Ability to get your cash quickly and without price change. A good plan make sure
that you have access to your money at any time you need it.
3. Protection:
Insurance offers protection against catastrophes loss like flood, Earthquake, major
illness and death.
4. Minimization of taxes:
A good financial plan must take taxes into account which helps to legally reduce
amount of taxes

13. Continue…
 Principle 4: Taxes affect financial decisions
 Principle 5: Stuff happens , importance of liquidity
 Principle 7: Protect yourself against catastrophes

14. Q4. Why is Principle 10 the most important principle? Why is it equally
relevant to financial and career planning?
Principle 10: Just Do it: