Financial Planning Caroline Cronin

College Information University of New Hampshire Tuition: $46,000 4 years: $184,000 % I will pay: 25% = $46,000 % my parents will pay: 25% = $46,000 % covered by loans: 50% = $92,000

College Loan Information Loan Amount: $92,000 Interest Rate: 3.76% https://studentaid.ed.gov/sa/types/loans/interest-rates 10 year loan 15 year loan R = $920.99 per month for 10 years R = $669.50 per month for 15 years Savings (in interest) for 10 year loan: $9,991.20 $669.50(12 months)(15 years) - $920.99(12 months)(10 years) = $9,991.20

Career Information RN (Registered Nurse) in Dallas, Texas Entry-Level Salary: $58,033 per year Five years after graduation: $81,096 per year https://smartasset.com/taxes/income-taxes#DKj1aUqSfB http://www1.salary.com/TX/Dallas/Staff-Nurse-RN-salary.html

Car Information 2017 Toyota Camry LE: $23,070 http://www.toyota.com/configurator/#!/build/step/model/year/2017/series/camry/model/2532 Predawn Gray Mica Exterior, Ash Fabric Interior, 2.5L 4-Cyl. Engine, 6-Speed Automatic

Car Loan Information Loan Amount: $23,070 Loan 1 Loan 2 2.64% APR for 60 months (5 years) 1.49% APR for 36 months (3 years) R = $410.86 per month for 5 years R = $655.66 per month for 3 years https://www.bankofamerica.com/auto-loans/auto-loan-rates/ https://www.usaa.com/inet/pages/bank_loan_auto_main?adid=sem%7cg%7cbnk%7ccsl%7ccar_loan%7cgen%7csrmk%7cawareness%7cext%7c99345824%7cVQ16-c%7cVQ6-85592991662&gclid=CjwKEAiA7ejCBRDlp8uF6ezPnjoSJAAPED7MBfr-wtjamQwHSrthLV4qWyh5rJ1dpm4qiFUslsrwdRoCK4rw_wcB&akredirect=true

Car Loan Information Loan 1 Loan 2 Total Cost of Loan = $24,651.60 Total Cost of Loan = $23,603.76 Monthly Payment: $410.86 Monthly Payment: $655.66 Number of years: 5 years Number of years: 3 years ($410.86)(12 months)(5 years)=$24,651.60 ($655.66)(12 months)(3 years)=$23,603.76 Which is loan offer is best? The second loan, 1.49% APR for 3 years, rather than the first loan, 2.64% APR for 5 years, is the better option because its lower interest rate and shorter term results in me paying less money overall.

House Information Cost: $175,000 Savings over 5 years: $40,548 10% of Gross Income ($81,096(0.1)=$8,109.6 saved each year After 5 years, $40,548 is saved ($8,109.6(5 years)=$40,548) What I can afford: $202,740 Down Payment will be my savings over 5 years Down Payment is 20% of home cost (20% of home cost = $40,548 $40,548/0.2=$202,740) 3940 Hawthorne Ave APT 5, Dallas, Texas 75219 -1 bed -2 baths -872 square feet -carport -pool http://www.zillow.com/homes/3940-Hawthorne-Ave-APT-5-Dallas-TX-75219_rb/ Cost: $175,000

House Information Loan: $140,000 ($175,000-$35,000=$140,000) Cost: $175,000 20% Down Payment: $35,000 ($175,000(0.2)=$35,000) Down Payment I could afford: $40,548 By only paying $35,000 for the down payment, I save $5,548 Loan: $140,000 ($175,000-$35,000=$140,000)

Mortgage Information Loan Amount: $140,000 Mortgage 1 Mortgage 2 3.959% APR Fixed (15 years) 5.391% APR Fixed (30 years) R = $1,032.69 per month for 15 years R = $785.36 per month for 30 years Total Cost of Loan = $185,884.20 Total Cost of Loan = $282,729.60 Savings for 15 year versus 30 year mortgage: $96,845.40 ($282,729.60-$185,884.20=$96,845.40) https://www.wellsfargo.com/mortgage/rates/

Mortgage Information Number of years it will it take if $200 is added to monthly payment for 30 year mortgage: 18.91 years New Monthly Payment (30 year): $985.36 ($785.36+$200.00=$985.36) By adding $200 to my monthly payment for the 30 year mortgage, I would save $59,131.71 $282,729.60 (Total cost of 30 year loan) - $223,597.89 (Total cost of loan with $200 added to monthly payment)

General Expenses Car Insurance - $135 per month https://www.valuepenguin.com/average-cost-of-insurance Home insurance - $132 per month https://www.valuepenguin.com/average-cost-of-insurance Food - $319.69 per month https://smartasset.com/mortgage/the-true-cost-of-living-in-dallas Gas - $88.60 per month http://www.dallasgasprices.com/map_gas_prices.aspx?z=11&lat=32.810646&long=-96.822014&sid=2097&ft=A http://www.fool.com/investing/general/2015/01/25/the- average-american-drives-this-much-each-year-ho.aspx MPG: 22/33 Median: 27.5 MPG Gas Price: $2.17 per gallon Average person drives 13,474 miles annually (13,747 miles/12 months=1,122.83 miles per month) 1,122.83 miles per month/27.5 MPG=40.83 gallons per month 40.83 gallons per month($2.17 per gallon)=$88.60 per month

General Expenses Utilities (heat/electricity/water/garbage) - $139.29 per month https://smartasset.com/mortgage/the-true-cost-of-living-in-dallas Internet/email/phone - $45.36 per month https://smartasset.com/mortgage/the-true-cost-of-living-in-dallas Property taxes - $318.79 per month https://smartasset.com/mortgage/the-true-cost-of-living-in-dallas 2.186% of property value = $3,825.50 per year/12 months = $318.79 per month Cell phone - $73.00 https://www.reference.com/technology/average-monthly-cellphone-bill-94fb6916ceeef8e9 Total = $1,251.73 per month for general expenses

IRA Information Amount I hope to retire with : $1,500,000 Assuming 9.50%* rate of return of the US stock market as measured by the S&P 500 Monthly Payment for 30 years: $737.81 R = $737.81 per month for 30 years *http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

Summary Five years after graduating college, I will have paid off my car loan of $23,070, but will still have to pay off my college loan for five years and house loans for ten more years. Assuming my salary remains consistent over the next sixteen years, when my loans are paid off my net monthly income after paying my general expenses and adding to my retirement savings would be about $3,129.96. With this money I would be able to meet any unexpected expenses, spend it on leisure or choose to put additional money towards my savings each month. In reality, I would most likely receive a pay increase which would increase my monthly income.