FIN 100 Personal Financial Planning

1. FIN 100 Personal Financial Planning How to make good financial decisions and live comfortably

3. Stress �

4. Why are you here? A: Need to solve a current financial problem B: Need to prepare for my financial future C: Sounded like an interesting elective D: Advisor signed me up E: Family/friend recommended it

5. What is financial success? Being financially comfortable, says Jonathan Clements of the WSJ. What does �comfortable� mean to you? What�s your definition?

6. Doing It Wrong �.

7. Raise $5,000 Now or Die! Where do you get the funds?

8. Raise $5,000 Now or Die! Where do you get the funds? Borrow (equity, family, friends) 45% Withdraw from account 32% Credit cards 9% Don�t know 8% Not possible 6%

9. Golden Years Spent in the �Red� Average credit card debt for 65-69 year olds was nearly $6K, 3x as much as 10 years ago. Paying minimum of 3% ($180) monthly at 18% requires nearly 4 years to pay off � IF no new debt incurred.

10. What blocks our way to success? Vague goals No planning Poor implementation No family agreement It�s hard!

11. Doing It Right �

12. Curtis Hensly � 30 year old bachelor Started earning mowing lawns as kid Earned a bachelor�s and master�s degree in forestry management Worked summers to create $25K nestegg when he graduated

13. Doing it Right� Lives frugally on $55K salary � NO DEBT Saves 16% of paycheck into 401K plan Employer matches 6% Has $200K in nestegg! Wants to retire by 55