Answer to Question #109655 in Management for Laurent

Question

“Use the S.M.A.R.T. planning model and information in this section to evaluate Alice’s goals (below). a. pay off student loan b. buy a house and save for children’s education c. accumulate assets d. retire e. travel around the world in a sailboat. Discuss your evaluations" (p.23). Prepare a two page (double-spaced) essay. Cite references to material that you use in preparing the essay.

Answer 1

Using the S.M.A.R.T. Planning Model to Evaluate Alice’s Goals Evaluation

In most cases, the S.M.A.R.T. planning model is used to view the financial planning process of Alice. In this case, Alice aims to achieve specific goals such as; paying the student loan, purchasing a house and saving for children's education, assets accumulation, retirement, and travelling globally using a sailboat (Bjerke, & Renger, 2017). However, Alice’s Goals Evaluation of finance requires S.M.A.R.T. planning model to achieve her goals. The planning model entails setting goals, which are; Specific, Measurable, Achievable, Realistic, and Time-bound. The evaluation is discussed as follows:

Specific

Specific goal setting in Alice's Goal Evaluation is an essential aspect of life. The goals outlined by Alice are concrete in that, after her college graduation, she aimed to earn some income to cater for her living overheads. Alice's daily needs include clothes, house rents, food, gas, entertainment, as well as paying off her £53,00 student loan within two years. Moreover, after achieving her short-term goals, her intermediate goals are to buy a house and accumulate assets for family upkeep within an interlude of two to ten years. She also has a goal to save her money surplus for the educational expenses of her children. Besides, she has a dream of annual surplus salary saving. Alice also has a long-term goal of retiring at her old age and drive the gross income from their accrued assets. Additionally, she would like to sail in a boat around the world after her retirement.

Measurable

Alice’s sets goals are measurable since she can define her goals systematically and appropriately. According to how she defines her goals, she cannot work on attaining her intermediate goals such buying a house and saving for her future family before attaining the short-term goal like; paying off a student loan and various living expenses.

Attainable/Achievable

The goals set by Alice are attainable since her expenses can be reduced when she receives a second part-time job. Moreover, she can decide to take risk of playing poker in Las Vegas to achieve her goals. Besides, if she chose for high risks, she might fail in her goals and as well give up in other alternatives.

Realistic

According to how Alice has outlined her overall goals, they are realistic and pertinent, since her crucial life needs lie between short term and intermediate goals, while her old age expectations are her long-term goals. 

Timely

Alice's goals are mentioned according to the time to be achieved, which include short-term goals, intermediate goals, or long-term goals. Therefore, she would provide her living expenses and if possible, pay her student loan during her short-term goals. In her intermediate goals, she would accumulate assets, buy a house, save for her children's education, and other expenses within two to ten years. Finally, her long-term goals are to retire, redeem income from her investments, and travel in a sailboat around the world.

Conspicuously, the above discussion describes the S.M.A.R.T. Panning Model of Alice’s Goals Evaluation. The conversation precises that her goals are specific, measurable, achievable, realistic, and timely.

Reference

Bjerke, M. B., & Renger, R. (2017). Being smart about writing SMART objectives. Evaluation and program planning, 61, 125-127.