Sample Plan - Free Financial Plan by Anasova - Report - Page 5

Your action steps:
You have some bad debt (debt at an interest rate over 5%).
Do not add to your expensive debt.
You must pay this debt off.
Paying off your bad debt is your most important action step.
You can immediately save $420 per year by re nancing some of your debt.
You should pay your debt down by re nancing it to a low rate rather than using your cash.
You should target $27,000 in cash.
This should be your base cash reserve.
Any less is risky. Any more might be inef cient.
Your current cash is $35,000.
I'll explore this more as we move through your report.
You should establish a line of credit for $63,000.
Your rate should be under 3%.
In the long-term you need to save 20% of your income. However for the short-term, over the next 12 months,
you must:
Start saving 16% of your income.
You need to continue to build your assets.
Do not pay down any of your good debt. (Debt at an interest rate under 5%).
Of course make the required payment but not a penny more.
Building your assets is more important than paying down your good debt, for now.
First, build up your assets. Later, I'll guide you when to pay down your good debt.
Do not pay down your student loans.
Do not pay down your mortgage.
For you, for now, 100% of your investments should be in the Vanguard Total World Stock index fund (ticker
symbol VT).
Until you have this base you do not need anything else.
First, you need a low-cost, super-diversi ed, tax-ef cient base.
Later, when you have built up more assets, I will guide you on other things to consider.
You must pay attention to my investment insights.
I ran the numbers. A traditional 60/40 portfolio is not likely to hit your objectives.
You are a strong candidate to re nance your mortgage.
I put my thoughts on ne-tuning your insurance in the detailed section of your report under "Protect Against
Bad Things".
Get a password protection app.
You must use an app to organize your nances. You need to be able to see all of your accounts in one place.
You must get a will. You should also have a living will and a health care power of attorney.
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