| Course | BUSI 489 Capstone in Financial Planning (BUSI489) |
|---|---|
| Module/Week | 4 |
| Assignment | Targeted Financial Plan 4 |
| Paper type | Targeted financial plan section (investment and education planning) |
| Length | about 737 words, 3 double-spaced pages plus title page and references. Course guide: a targeted financial plan section for a hypothetical case client covering one or more planning content areas, prepared to be combined into the Comprehensive Financial Plan |
| Format | APA 7 student paper |
| Points | 100 |
| School | Liberty University Online |
| Program | BS in Business Administration |
| Where it sits | Module/Week 4 in Liberty's published BUSI 489 course guide; current sections can differ |
| Updated | October 2026 |
Free sample paper for BUSI 489 Week 4
Targeted Financial Plan 4: Investment and Education Planning for the Whitaker Household
[Student Name]
School of Business, Liberty University
BUSI 489: Capstone in Financial Planning
Targeted Financial Plan 4
[Instructor Name]
[Date]
The Whitaker household is a composite client standing in for the textbook's hypothetical case, which is not public; projections use stated assumptions and are illustrations, not guarantees, the research and the Scripture cited are real, and the structure follows Liberty's public course guide for BUSI 489.
Targeted Financial Plan 4: Investment and Education Planning for the Whitaker Household
Risk Profile and Time Horizons
The Whitakers completed a risk tolerance questionnaire that placed them in the moderate-to-high range: they are willing to accept market declines in exchange for growth, but a drop of more than a third would cause them real concern. Their retirement horizon is 20 years for Daniel, and their college horizons are 8 years for the older child and 11 for the younger. Money needed within five years, such as the emergency fund and the planned car purchase, belongs in cash, not investments. Separating the goals by horizon keeps a market decline from forcing the sale of stock funds to pay for a car or an emergency.
Current Holdings
| Account | Balance | Current holdings |
|---|---|---|
| Daniel's 401(k) | $142,000 | 60 percent active stock funds (0.85 percent average expense), 25 percent employer stock, 15 percent stable value |
| Grace's IRA | $28,000 | Money market fund |
| Brokerage account | $25,000 | Bond fund $12,000; three technology stocks $13,000 |
| 529 plans | $18,000 | Age-based portfolios ($11,000 older child, $7,000 younger) |
The brokerage balance reflects the $10,000 moved to savings in the first section.
Analysis of Current Holdings
Four problems stand out. First, costs: the 401(k)'s active funds charge about 0.85 percent a year, while the plan also offers index funds charging about 0.05 percent. On $142,000, that difference is about $1,100 a year, compounding for two decades. Sharpe (1991) used simple arithmetic to show that, because indexers and stock pickers together own the whole market, the stock pickers as a group cannot beat it, and their higher fees leave them behind. Second, concentration: a quarter of the 401(k) is in Daniel's employer's stock. Benartzi (2001) found that employees tend to extrapolate their company's past stock returns and allocate heavily to company stock, even though it ties their savings to the same firm that pays their salary. If the employer struggled, Daniel could lose his job and a large part of his retirement savings in the same year. Third, Grace's IRA has sat in a money market fund for years, a long-horizon account earning a short-term return. Fourth, the brokerage account's three technology stocks are a bet on one sector; Barber and Odean (2000) showed that the households in their brokerage sample who turned over their portfolios fastest ended up with the poorest results after costs.
Recommended Allocation
For the retirement accounts as a whole, the plan recommends 75 percent stocks and 25 percent bonds, consistent with the Whitakers' risk tolerance and 20-year horizon: 45 percent broad U.S. stock index, 20 percent international stock index, 10 percent small-company or value index and 25 percent investment-grade bond index. Brinson et al. (1986) traced most of the ups and downs in pension funds' quarterly returns to their long-run mix of asset classes, so getting the mix right matters more than selecting individual securities. Practical steps:
- In the 401(k), move from the active funds to the plan's index funds, hold the bond allocation here for tax reasons as the tax section explained, and reduce company stock to no more than 10 percent of the account.
- In Grace's IRA, invest in a target-date or balanced index fund matching the overall mix.
- In the brokerage account, hold a broad stock index fund; sell the three technology stocks gradually, using any losses to offset gains.
Benartzi and Thaler (2001) found that many plan participants spread contributions evenly across whatever funds a plan offers, which can produce an unintended mix; choosing the allocation deliberately avoids that trap.
Education Planning
Section one set the target at half of a four-year public in-state degree for each child, priced here at $30,000 a year in today's dollars, with costs rising 4 percent a year and investments earning 6 percent.
| Measure | Older child (enrolls in 8 years) | Younger child (enrolls in 11 years) |
|---|---|---|
| Half of projected four-year cost | about $87,200 | about $98,100 |
| Current 529 balance grown at 6 percent | about $17,500 | about $13,300 |
| Remaining gap at enrollment | about $69,700 | about $84,800 |
| Monthly saving needed | about $567 | about $455 |
Fully funding the goal would require about $1,022 a month, against the $200 the family now contributes.
A Realistic Compromise
The family cannot add $820 a month to college saving while paying off credit cards, rebuilding the emergency fund, adding insurance and raising retirement contributions. Because the children can borrow for college but the parents cannot borrow for retirement, the plan gives retirement priority. It recommends raising 529 contributions to $500 a month once the credit cards are paid, enough, with the existing balances, to fund a little over half of the goal, and covering what remains through merit aid, part-time work by the students themselves, monthly income during those years and, as a last resort, modest federal loans.
A Christian Perspective
The Teacher in Ecclesiastes advises dividing one's portion among seven, or even eight, because no one knows what trouble may come (English Standard Version Bible, 2001/2016, Ecclesiastes 11:2). Diversification is that ancient advice in modern form. Grable et al. (2012) and Lytton et al. (2012) treat investment and education planning as steps toward the family's goals rather than ends in themselves, a reminder that money set aside for children is held in trust for them.
References
Barber, B. M., & Odean, T. (2000). Trading is hazardous to your wealth: The common stock investment performance of individual investors. The Journal of Finance, 55(2), 773-806. https://doi.org/10.1111/0022-1082.00226
Benartzi, S. (2001). Excessive extrapolation and the allocation of 401(k) accounts to company stock. The Journal of Finance, 56(5), 1747-1764. https://doi.org/10.1111/0022-1082.00388
Benartzi, S., & Thaler, R. H. (2001). Naive diversification strategies in defined contribution saving plans. American Economic Review, 91(1), 79-98. https://doi.org/10.1257/aer.91.1.79
Brinson, G. P., Hood, L. R., & Beebower, G. L. (1986). Determinants of portfolio performance. Financial Analysts Journal, 42(4), 39-44. https://doi.org/10.2469/faj.v42.n4.39
English Standard Version Bible. (2016). Crossway. (Original work published 2001)
Grable, J. E., Klock, D. D., & Lytton, R. H. (2012). The case approach to financial planning: Bridging the gap between theory and practice (2nd ed.). The National Underwriter Company.
Lytton, R. H., Grable, J. E., & Klock, D. D. (2012). The process of financial planning: Developing a financial plan (2nd ed.). The National Underwriter Company.
Sharpe, W. F. (1991). The arithmetic of active management. Financial Analysts Journal, 47(1), 7-9. https://doi.org/10.2469/faj.v47.n1.7
What the BUSI 489 Week 4 instructions ask
In week four BUSI 489 assigns chapters 10 and 11 of Grable et al., an appendix of Lytton et al., a presentation and a lecture note, and two items come due: Discussion Board Forum 1 and Targeted Financial Plan 4, worth 100 points. The targeted plan applies the textbook's sample client to another slice of the eventual comprehensive plan, and it must draw on the risk profile, cash flow and goals established in the earlier sections. Investment and education recommendations are where those earlier decisions meet: every dollar invested for college is a dollar not saved for retirement or held in reserve, so the section should make the trade-offs visible.
How this BUSI 489 Week 4 example is built
The section opens with the clients' risk profile and time horizons. A table shows current holdings by account, followed by an analysis of four problems: high fund costs, concentration in company stock, cash sitting idle in the IRA and an undiversified brokerage account. A recommended allocation follows, with reasons drawn from research on what drives portfolio returns and what erodes them. The education section projects each child's college costs with stated inflation and return assumptions, calculates the monthly saving each goal requires, and compares it with what cash flow allows. The section closes with a compromise plan and a short reflection on diversification from Ecclesiastes. All figures tie back to section one.
BUSI 489 Week 4 grading rubric: where the points go
Investment and education sections are graded on whether recommendations follow from the client's risk tolerance, time horizon and goals; whether the analysis of current holdings is accurate; whether projections state their assumptions and calculate correctly; and whether the plan fits the cash flow established earlier. Instructors look for terms such as asset allocation, diversification, expense ratio, concentration risk, time horizon, 529 plan and future value used correctly. Recommending specific fund types and percentages, rather than general advice to diversify, shows professional judgment. Showing the gap between an education goal and what the budget allows, and proposing a reasoned compromise, earns more than assuming every goal can be met. Stating fees in dollars persuades clients.
BUSI 489 Week 4 help: mistakes that cost points
Begin with the client's risk tolerance and time horizon for each goal, since they drive everything else. List current holdings by account and look for costs, concentration and idle cash. Recommend an allocation in percentages and fund types, and explain how to get there with as few taxable sales as possible. For education, state every assumption, cost today, cost inflation, investment return and years to enrollment, and show the arithmetic for the monthly saving needed. If the goal does not fit the budget, say so and offer options. Keep figures consistent with the tax and cash flow sections. Show the client the trade-off in one sentence.
Related BUSI 489 sample papers
Other BUSI 489 weeks
- BUSI 489 Week 1: Targeted Plan 1: Financial Position
- BUSI 489 Week 2: Targeted Plan 2: Income Tax Planning
- BUSI 489 Week 3: Targeted Plan 3: Insurance Needs
- BUSI 489 Week 5: Targeted Plan 5: Retirement
- BUSI 489 Week 6: Targeted Plan 6: Estate Planning
- BUSI 489 Week 7: Forum 2: Advice and Conflicts
- BUSI 489 Week 8: Comprehensive Financial Plan
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BUSI 489 Week 4 questions, answered
What is BUSI 489 Targeted Financial Plan 4?
Worth 100 points in the fourth week, it is the targeted section that in this sample covers the case household's investment allocation and college funding.
Where can I find a free BUSI 489 Week 4 sample paper?
Read a complete BUSI 489 Week 4 targeted plan here, with a review of holdings, a recommended allocation, college cost projections and a funding compromise.
How much should a family save monthly for college?
It depends on the target, years to enrollment, cost inflation and investment return; in this sample, funding half of two children's in-state costs would take about $1,000 a month.
Why limit company stock in a 401(k)?
Holding much of a retirement account in an employer's stock ties both a worker's paycheck and savings to one company, so a single failure can cost both at once.
What else is due in BUSI 489 Module/Week 4?
Forum 1 falls in the same week: a thread answering the instructor's topic and two responses to classmates, all drawing on personal experience and the course readings and presentations.
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