Financial Simulator


			Personal Finance Simulator 2012
			Version 22.3

			David E. Lee, DVM, MBA
			Associate Professor, Practice Management
			College of Veterinary Medicine
			University of Minnesota


			Disclaimer - This program is intended to illustrate basic concepts of personal finance. In the interest of simplicity, many elements have been ignored because of immateriality or irrelevance to the program's intended purpose, As such, the results generated may lack the accuracy desired for serious financial planning. The user is referred to a CPA, CFP, or other qualified professional for such purposes.





© 2010, Practice in Practice Management Case Studies, All rights reserved.


Personal Finance Simulator
Instructions*

Links across the top of the page walk you through the 8 steps needed to develop a personal budget

	1) Student Loan Debt	Calculate your monthly payment for any student loans you may have
	2) Salary	Predict your salary based on productivity. Other sources of income can be entered too.
	3) Credit Cards	Credit card debt can be a drain on your budget
	4) Auto Lease vs Buy	Determine whether a new car makes sense for you
	5) Home Expenses	A new home can be a good investment but a huge liability as well
	6) Retirement Savings	Saving for retirement is essential but challenging for many new grads
	7) Personal Savings	Saving for a rainy day is more than just an old adage!
	8) Summary	Estimate your monthly expenses for the categories provided. Be sure to enter your marital status and exemptions for tax purposes. Scroll down to the bottom to see if you have money leftover!


Beige cells require your input
Dark Blue cells are calculated from other sheets

	IMPORTANT:Input (beige) cells which do not apply should be left blank or you may enter a value of zero ("0"). Include all sources of income, including that from a spouse or partner on the salary page.
	* Students using this program with Dr. Wilson's course should also refer to his supplemental instructions
	"Reset" will return the values to their default
	"Print" will print the current sheet
	"Update" will recalculate the worksheets with any changes
	(clicking on another cell will do the same thing!)
© 2010, Practice in Practice Management Case Studies, All rights reserved.


Student Loan Calculator
Help

		Traditional Loans	Loan 1	Loan 2	Loan 3	Loan 4
	Input Data	Amount Borrowed:
		Annual Interest Rate
		Number of Years


	Output Data	Monthly Payment:
		Total Amount Paid:
		Total Interest Paid:

		IBR Monthly Payment		click here to calculate

© 2005, Practice in Practice Management Case Studies, All rights reserved.


Salary Calculator
Help


	Inputs:		Outputs:	Reality:

	Days per Week			Part-time positions are becoming common in veterinary medicine. While such hours may be necessary or desirable for personal reasons, part-time practice can make case continuity and professional growth more challenging. On the other hand, working long hours six or seven days a week for an extended period of time can contribute to burnout and be counterproductive in the long run.
	Hours/Day
	Vacation/Sick/CE Days/Year


		Days Worked per Year


	Appointments per 8 Hour Day			Experienced small animal clinicians in busy, efficient practices with proper staffing may see 20 or more cases in an average 8 to 10 hour work day. A new graduate may struggle with more than 12 per day for the first few months. Some practices prefer to see fewer cases (e.g. 8/day) but charge more for their time.


		Visits per Year


	Doctor ACT			Overall practice Average Client Transactions (ACTs) serve as an important metric of production. A small animal associate's Dr. ACT (total doctor revenue divided by number of doctor produced invoices) varies from a low of $120/case to a high of $225. The national average Dr. ACT is about $140. These numbers are significantly higher for emergency and referral practices where $250 to $500 are common numbers. The ACT for an entire practice is always lower because of sales of pet food, Rx refills, retail items, and any other OTC products.






		Sales Req per Year


	% of Production			According to NCVEI data from over 12,000 veterinary practices, over 50% of them have a production-based compensation component. Percentages in small animal practices vary from 18% to 22% of production plus benefits while large animal practices average about 25% plus benefits. Check on the willingness to negotiate this percentage, especially as your years of experience grow. Even more importantly, be sure that your contract indicates what services and products are included in your production and which are excluded.






		Possible Salary

	Other Income Including Spouse's/Partner's
				The average salary for new veterinary graduates is about $68K. Can you produce enough revenue for your employer to pay the salary you need? Don't forget to include your spouse's or significant other's income here so it flows through to total household income on future pages.


		Household Income


		Credit Card Calculator
Help


	Input Data		Balance:
			Annual Interest Rate
			Planned Monthly Payment


	Output Data		Minimum Monthly Payment Allowed
			Years to Zero Balance
			Total Amount Paid:
			Total Interest Paid:


© 2010, Practice in Practice Management Case Studies, All rights reserved.


Auto Loan Calculator
Help

			Lease vs. Buy

	Input Data	Price of Car
		Downpayment
		Annual Depreciation Rate
		Residual Value
		Amount Financed
		Annual Interest Rate
		Money Factor (Ask Dealer)		N.A.
		Number of Years

		Number of cars to lease or buy?
	Output Data	Depreciation Cost:		N.A.
		Lease Cost:		N.A.
		Total Monthly Payment:
		Total Amount Paid:
		Equity in Car at Termination	$0
		Total Cost of Deal:
		True Monthly Cost:




© 2010, Practice in Practice Management Case Studies, All rights reserved.


	Home Expenses Calculator
Help


	Input Data	Cost of Home
		Downpayment
		Annual Interest Rate
		Number of Years


	Output Data	Monthly Payment:
		Est. Property Taxes (1%)
		Insurance
		Maintenance
		Total Monthly Costs
		Total Amount Paid:
		Total Interest Paid:
		Tax Benefits per year
		Purchase Home? (Y/N)

© 2010, Practice in Practice Management Case Studies, All rights reserved.


		Retirement Savings Calculator
Help


	Input Data		Current Age
			Retirement Age
			Expected Annual Household Income	(from salary worksheet)
			Expected Rate of Return before Retirement
			Expected Rate of Return during Retirement
			Expected salary increase per year (%)
			Retirement Income as Percent of Working Income
			Annual Social Security Benefits after Retirement (estimate)	Social Security Calculator
			Value of Current Retirement Savings

	Output Data		Salary at Retirement (in future dollars)
			Retirement Income Needed per Year
			Social Security Receipts
			Retirement Income Unmet
			Savings Needed at Retirement (in future dollars)
			Future Value of Current Retirement Savings
			Amount you still need to save

			Amount to save per month

© 2010, Practice in Practice Management Case Studies, All rights reserved.


Personal Savings Calculator
Help


	Input Data	Interest Rate
		Number of Years
		Amount Saved per Month



	Output Data	Amount Saved
		Interest Received


© 2010, Practice in Practice Management Case Studies, All rights reserved.

Estimated Annual Expenses
Help


				Monthly	Annual
	Debt/Loans
		College Loans¹
		Loan 1
		Loan 2
		Loan 3
		Loan 4
		IBR
		Total College Loans
		Car Payment²
		Credit Cards³
	Housing
	Homeowners
		Mortgage⁴
		Property Taxes⁴
		Insurance⁴
		Home Repairs & Maint.⁴
	Renters
		Rent
		Maint. & Supplies
		Renters Insurance Premium
	Utilities
		Monthly Base Telecomm
		Long Distance/Cell
		Cable/Satellite TV
		Gas/Electricity
		Water/Garbage/Sewage
	Automobile
		Gas
		Insurance
		Repairs and Maintenance
		License/Registration
		Mass Transit
	Food
		Groceries
		Meals out
	Child Care
		Daycare/Nanny
		Private Education Tuition
		Childrens Clothing
		Diapers
		Other
	Insurance
		Health
		Life
		Disability Ins (click for quote)
		Prof Lblty (if unpaid by employer)
	Uninsured Medical Expenses
		Medical & Copays
		Dental (annual exam & prophy)
		Optometrist/Contact Lenses
		Prescription/OTC Drugs
		Pet Insurance (click for quote)
		Other
	Entertainment	Movies/Dining/TGIF
	Clothes	Dress like a doctor!
	Miscellaneous
		Job Search Expenses
		Pet Food
		Pet Care (inc Med Costs)
		Personal Hygiene/Hair/Cosmetics
		Books, Newspapers, Magazines
		Vet Cont Education
		Gifts/Flowers
		Charitable Contributions
		Travel to Visit Family
		Vacation
		Cleaning and Laundry
		Other Tuition
		Text Books
		Expenses I may have forgotten

Total Expenses

	Contributions to Savings
		Retirement⁵
		Other⁶

Total Fixed and Variable Household Expenses

	Household Income⁵:
	Adjusted Gross Income:
	Marital Status for Tax Purposes			S=Single, M=Married
	Children for Tax Purposes
	Total Exemptions
	Deductions
	Taxable Income
	State Taxes (click for info)
	Federal
		FICA/Medicare (7.65% of Gross)
		Federal Income Tax

Total Taxes

Net Income (gross wages less taxes)
				Monthly	Annually
Income in excess of expenses

Note:

1. From Student Loans Worksheet			4. From Home Expenses Worksheet
2. From Auto Lease vs. Buy Worksheet			5. From Salary Worksheet
3. From Credit Cards Worksheet			6. From Personal Savings Worksheet







© 2010, Practice in Practice Management Case Studies, All rights reserved.

2010 Tax Schedule:
						Standard Deduction:

						Adj Gross Income
						Number of Exemptions

						AGI
						Taxable Income
						Deduction for Exemptions
Your situation:	Taxable Income	Tax	Plus	Of the amount over	Equals	Standard Deduction


















Single Schedule
Taxable income is over	But not over	The tax is	Plus	Of the amount over		Standard Deductions - 2010
$ -	$ 8,375	$ -	10%			Personal Exemption	3650
$ 8,375	$ 34,000	$ 838	15%			Single Standard	5700
$ 34,000	$ 82,400	$ 4,681	25%			Married	11400
$ 82,400	$ 171,850	$ 16,781	28%
$ 181,850	$ 373,650	$ 41,827	33%
$ 373,650		$ 108,421	35%
Married Filing Jointly
Taxable income is over	But not over	The tax is	Plus	Of the amount over
$ -	$ 16,750	$ -	10%
$ 16,750	$ 68,000	$ 1,675	15%
$ 68,000	$ 137,300	$ 9,363	25%
$ 137,300	$ 209,250	$ 26,688	28%
$ 209,250	$ 373,650	$ 46,834	33%
$ 373,650		$ 101,086	35%


Taxable income is over	But not over	The tax is	Plus	Of the amount over