1. Alexandra Shelton & Nico Hoon Financial Plan for Suzy K. Spartan

2. Summary Suzy K. Spartan is a student at Manchester University and will be graduating this month. She plans to move to Indianapolis to work at Eli Lilly as a chemical research assistant and will make $40,000 her first year there. Suzy receives many insurance benefits from Eli Lilly like, free life insurance for twice her salary and single employee healthcare insurance coverage for $50 per month. Suzy has a student loan debt of $50,000 and a credit card debt of $2,500. She has saved $5,000 this year and has $1,000 in her savings and checking account. In the future Suzy hopes to get married, have kids, and buy a house. If Suzy can afford it, she would like to travel internationally before settling down with a family.

3. Goals Short Term goals:  Get a gas efficient car, ($5,000 or under)  Pay off credit card debt of $2,500  Put 10% of salary into 401(k)  Donate 4% of gross income to charity each month Long Term goals:  Pay off student loans, ($50,000)  Travel internationally, if she can afford it  Buy a house and start a family

4. Retirement Full Retirement age is the age at which a person may first become entitled to full or unreduced retirement benefits. A person may start receiving benefits as early as 62 or as late as age 70 10-15% of all wages is good for retirement funds Suzy has a 401(k) and is investing 10% of her salary, which is $333.33 Eli Lilly is putting $166.66 into Suzy’s 401(k) Suzy’s 401(k) is already factored and will be taken out of her gross pay with her taxes

7. Budget

8. Net Worth- May

9. Net Worth- June

10. Identity Theft Identity theft is a dangerous thing that could happen to anyone, but with the right preventative measures it can be prevented. There are six steps that will help to avoid identity theft  Don’t carry your social security card in your wallet  Protect your pin numbers  Watch out for “shoulder surfers”  Collect mail promptly  Pay attention to your billing cycles  Keep your receipts

11. Debt Two major forms of debt that Suzy has is student loans and credit card debt.  $50,000 (student loan debt), it will cost $492.09 a month for 10 years to pay back this debt  If needed Suzy qualifies for the extended payment play, which allows her to pay back this debt over 25 years  $2,500 (credit card debt) with an annual interest of 17.54%  Suzy plans to pay this debt off as soon as she starts working

12. Insurance While working at Eli Lilly, Suzy gets some insurance benefits Free life insurance for twice of Suzy’s salary Single employee healthcare coverage for $50 per month Receives HDHP/PPO plan with a $2000 deductible Establish a HSA for $20 per month This is a low deductible

13. Estate Planning If Suzy passes away before she gets married or has children, all of her assets will go to her parents. If Suzy is married and has children, her assets will get divided up and will be giving to her husband and kids. Suzy should draw up a will after she gets a job and starts to bring in a bigger salary or right after she gets married.

14. Works Cited http://www.socialsecurity.gov/retire2/agereduction.htm http://www.transunion.com/personal-credit/identity-theft-and- fraud/how-to-prevent-identity-theft.page http://www.transunion.com/personal-credit/identity-theft-and- fraud/how-to-prevent-identity-theft.page https://www.wellsfargo.com/financial-education/basic- finances/manage-money/options/bank-account-types/ https://www.wellsfargo.com/financial-education/basic- finances/manage-money/options/bank-account-types/