Planeacion De Finanzas Personales

TABLE OF CONTENTS

Executive Summary………………………………………………………………………………………………………….3

Economical activity ………………………………………………………………………………………………………….3

AFORES……………………………………………………………………………………………………………………………4

Insurance………………………………………………………………………………………………………………………..5

Taxes……………………………………………………………………………………………………………………………….6

Budget…………………………………………………………………………………………………………………………….7

Financing………………………………………………………………………………………………………………………..9

Credit cards…………………………………………………………………………………………………………………….9

Mortgages…………………………………………………………………………………………………………………….11

Credit line………………………………………………………………………………………………………………………13

Investing ……………………………………………………………………………………………………………………….14

Conclusion……………………………………………………………………………………………………………………..15

References…………………………………………………………………………………………………………………….15

Executive summary

The personal finance is a professional area that provides giddiness regarding financial decisions such as selecting a mortgage, acquiring credit cards or even hiring insurance.

There are many factors that involved in the choosing of the options for every financial product needed, and in the present paper those factor will be listed in order to select the best option in retirement funds, insurances ,credit cards, credit lines and mortgages.

And that information will be integrated into a budget projected five years from now.

Economical activity

In the past six months from November 2014 until April 2015, the economy has been affected for several issues that have the potential to affect the behavior of personal finances. Those events are integrated by the dramatic decrease of the global oil price and the increment in the exchange rate dollar-peso.

The overproduction in oil by the major producers in the world lead to a war of prices that put to Mexico in a hard situation because the 31% of the government income comes from the oil exports so this lead to a public budget cut .In this particular case there is risk that the housing programs may be affected for such cut, and that will affect the personal finances of people who is pretending to acquire a house.

Another factor that can affect personal finances is the depreciation of the Mexican peso against the American dollar, because it affects the final price of several goods that are fixed in US currency, such as imported products and traveling costs.

Afore

Base salary for comparison purposes $12,000.00 MXN

Mandatory contribution 6.05 %

Annually contribution to AFORE $ 9360.00 MXN

Initial saver age 22 years

Retirement age 65 years

SURA

Estimated net return rate 12.09 %

Fee 1.11 %

Risk classification AA-AAA

Amount of saving at maturity $1,828,060.00 MXN

360 days volatility 5.97%

VaR 0.80 %

BANAMEX

Estimated net return rate 11.01%

Commission 1.05 %

Risk classification AAA

Amount of saving at maturity $1,773,259.00 MXN

360 days volatility 5.35 %

VaR -1.50 %

GNP

Estimated net return rate 10.93%

Fee 1.11 %

Amount of saving at maturity $779,595.00 MXN

Risk classification not available

360 days volatility 5.42 %

VaR 1.23 %

My election will be to invest in SURA´s AFORE because they offer a good return of the investment, and also have acceptable risk indicators such as the VaR and volatility .All the AFORES where compared in the SB4 which is the classification for people saving before 36 years old, and in this rank the returns are higher that the offered for elder savers.

Insurance

Car insurance

This type of insurance becomes necessary because there is a risk of having a car accident in which material and personal damages may occur, so it is needed to be covered against this possibility

Taking into account the type of car that I am planning to have in further years (a compact model such as Chevrolet spark) the best price I can get is from MAPFRE with an annual cost of $6975.00 and the possibility of divide it in 12monthly payments interest free.

This is the price for the extended plan in which you are covered for civil responsibility in terms of goods and people, also provides legal consult, traffic assistance; oversea coverage and total lose in case of accident, fire, country risk and natural disasters.

With an additional fee of 1174.00 MXN they offer to cover the deductible in case of accident and to provide a replacement car.

Life insurance

This type of insurance covers a certain amount of money in case of an event that affects the life, such as death, total or partial in capacitance to work.

The one offered by BANAMEX covers an amount of $700,000.00 MXN for a fee of $200.00 MXN monthly.

Health insurance

This insurance helps to cover the expenses derivate from clinical procedures y case of accident or deceases.

GNP SEGUROS offers a plan named AMBAR FLEXIBLE in which for a fee of $466.00 MXN monthly they cover medical expenses for a total amount of $65,000,000.00 MXN

Each of the mentioned above insurances are highly needed in order to protect the patrimony and wellness of ourselves and the people around us and I will be hiring the three of them.

Taxes

ISR impuesto sobre la renta

The ISR is a tax applied to the income result of the remunerated work and the rate to be paid depends in a range with a superior and inferior limit listed in the next chart followed by the estimation of the payment of such tax.

Losimpuestos.com

Refrendo vehicular

This is a tax applied to the possession of car plates, and it is paid for every car owner independently to the value of the car which another tax called tenencia. In Queretaro the cost of the “refrendo” is for $464.00 MXN in 2015 while there is no charge for the tenencia.

Budget

Actual budget 2015

INCOME Anual Monthly

Salary 1 $ 120,000 $ 10,000

TOTAL INCOME $ 120,000 $ 10,000

EXPENSES % CATEGORY Anual Monthly

Food 11.0% Supermarket $ 14,400 $ 1,200

Home 35.9% Rent $ 36,000 $ 3,000

Home Gas $ 300 $ 25

Home Light $ 3,600 $ 300

Home Water $ 1,200 $ 100

Home Telephone/internet $ 6,000 $ 500

Education 16.5% Tuiton $ 21,600 $ 1,800

Entertainment 7.3% Party $ 2,400 $ 200

Entertainment Restaurant $ 3,600 $ 300

Entertainment Movies $ 3,600 $ 300

Personal 11.0% Shoes/Clothes $ 12,000 $ 1,000

Personal Cellphone $ 2,400 $ 200

Services 9.2% Cleaning $ 12,000 $ 1,000

Transportation 9.2% Gas $ 9,600 $ 800

Transportation Maintenance $ 2,400 $ 200

TOTAL EXPENSES $ 131,100 $ 10,925

INCOME-EXPENSES $ (11,100) $ (925)

Budget for 5 years in the future

Income distribution

Financing

Credit card

Product :BANORTE FACIL

User Type: persona fisica

Minimum Monthly income: $3,000.00 MXN

Annuity: $120.00 MXN

Average interest rate: 16.08%

CAT: 18.3 %

Benefits

Thief or lose insurance

Travel accident insurance

Minimum payment charged to checks accounts

Automatic charge of services

VISA membership

Family assistance

Fixed interest rate

Explora BANORTE program for travel offers

Product :BANCOMER AFINIDAD UNAM

User Type: persona fisica

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