FIN 321 Personal Wealth Building

Financial Plan Exercise using Financial Planning Software

INSTRUCTIONS

Attached, please find the case study of James Wilson and Harold Newton. James and Harold are a married
same-sex couple that has been together for seven years; they both live in the house that Harold owns.

Harold inherited money from his mother in a generation-skipping trust; the trust allows for distributions for
health, education, maintenance, or support. For most years, Harold has not taken withdrawals from this
account. However, the trust reverts to Harold’s brother if he has no children at his death. Harold has a will that
leaves everything to his parents; Harold has a power-of-attorney and health care power-of-attorney that names
his father as attorney-in-fact. Harold runs a successful consulting practice out of his home. Harold states that
he is relatively aggressive, and his investment account is almost entirely (90%) equity investments.

James has no estate documents. James contributes $3,000/year to his 401(k), just enough to obtain the
maximum matching contribution offered by his employer. In contrast, Harold contributes $10,000 / year to his
SAR SEP IRA

James and Harold live a relatively extravagant lifestyle of dining out and vacations, funded primarily by
Harold’s income and assets. However, James still provides primary support for his basic living needs.

Neither James nor Harold has any life or disability insurance.

James is the beneficiary of Harold’s SAR SEP IRA.

James’ sister is the beneficiary of his 401(k)

The primary residence mortgage is a 5/1 ARM 30-year loan and was taken out exactly two years ago. Harold
has made 24 payments at a rate of 7.25%.

James is currently paying a 16.99% annual interest rate on his credit card debt.

GOALS

1. Save for retirement
2. Provide for each other in the event of death.

NEXT

Using the information attached about James and Harold, create a financial plan using MoneyGuide Pro (see
below and attached for directions.).

QUESTIONS

Based on your MondeyGuide Pro financial plan for James and Harold:

1. Summarize the MoneyGuide Pro recommendation in a three to five-page (900 to 1,500-word) report.
2. Do you agree with the recommendations?
3. Would you suggest they lower their risk tolerance?
4. How would you reallocate Harold’s investments? (currently, they are 90% equity)
5. How would you implement the recommendations? (prioritization, time, money)
6. In your opinion, how often should the financial plan of Harold and James be monitored?

Welcome to MoneyGuide Pro

Designed for advisors with the client in mind, MoneyGuidePro® provides sophisticated solutions and smart
assumptions to help advisors navigate the complex financial elements of their client’s lives.

View a 5-Minute Demonstration Video
Watch a 5-minute video and see how it works at Envestnet | MoneyGuide – Financial Planning Software
(moneyguidepro.com)

Here is your Registration Code

Your registration code is 99038. This registration code will be valid for the school year AY2022 to AY2023.

Setup and Sharing Instructions:

• You, and then each student, should go to http://learn.moneyguidepro.com to create a free account
• Click the Register button
• Read and agree to the license agreement
• Create a User ID and Password
• Use this Registration code (which is unique to your institution): 99038 (same code for faculty and

students).

A Few Limitations

Because our university licenses are free, students are not allowed to contact our Support Team directly via
phone, email, or chat. If they have questions, please ask them to contact their professor, and the professor or
program director can contact us if necessary. Students are more than welcome to attend our live webinar
training, view the pre-recorded videos, and read the user guides available within the Support Center upon
login. All data entered into these accounts will be deleted after the 6-month license period. See the Case
Study for more instructions.