Phase 1 exam review 2 5 m c 25 t f questions 3 time value of money problems chapters 1 5
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Phase 1 Exam Review 2 5 M/C, 25 T/F Questions 3 Time Value of Money Problems Chapters 1 - 5 PowerPoint PPT Presentation


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Phase 1 Exam Review 2 5 M/C, 25 T/F Questions 3 Time Value of Money Problems Chapters 1 - 5. Personal Financial Planning FIN 235. Chapter 1 Personal Financial Planning in Action. Keys to Personal Financial Success Objectives: Financial & Career Planning Tax Planning Risk Management

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Phase 1 Exam Review 2 5 M/C, 25 T/F Questions 3 Time Value of Money Problems Chapters 1 - 5

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Phase 1 exam review 2 5 m c 25 t f questions 3 time value of money problems chapters 1 5

Phase 1 Exam Review25M/C, 25 T/F Questions3 Time Value of Money ProblemsChapters 1 - 5

Personal Financial Planning

FIN 235


Chapter 1 personal financial planning in action

Chapter 1Personal Financial Planning in Action

  • Keys to Personal Financial Success

    • Objectives:

      • Financial & Career Planning

      • Tax Planning

      • Risk Management

    • Importance of spending less than you earn

    • Effects of Inflation (CPI measure), GDP

  • Time Value of Money Problems (4 Extra Credit)


Chapter 2 career planning

Chapter 2Career Planning

  • Importance of Career Planning

    • Links to life time income potential

    • Identifying Career opportunities

    • Importance of resume and cover letters

      • Key phrases – targeting cover letter

    • Managing credit profile

    • Continuing Education


Chapter 3 financial statements budgets

Chapter 3Financial Statements, Budgets

  • Importance of Goals and Personal Values

    • Setting Financial Goals (being specific)

      • Spending

      • Capital Accumulation

      • Risk Management

    • Personal Balance Sheet

      • Assets

      • Liabilities

      • Net Worth = Assets - Liabilities

    • Cash Flow Statement

      • Income

      • Expenses

        • Fixed

        • Variable

    • Disposable Income vs. Discretionary Income


Chapter 4 managing income taxes

Chapter 4Managing Income Taxes

  • Tax Terminology

    • Progressive

    • Regressive

    • Marginal Rates vs. Average Rate

    • Treatment of Short-Term vs. Long-term Gains

    • Managing Tax Burden

      • Deductible expenses: itemizing vs. Standard Deduction

    • Use-it or Loose-It accounts

    • Tax Forms: 1040EZ, 1040A, 1040, 1040X


Chapter 5 managing checking savings

Chapter 5Managing Checking & Savings

  • Importance of Liquidity

  • Mutual S&Ls, Credit Unions

  • Meeting Daily Money Needs

    • Debit cards: immediate deductions from checking account

    • Credit cards: deferred payments

    • Demand deposit (Checking, NOW)

    • Time deposits (CD’s)

  • Monetary Assets

  • Liability limits for lost credit cards

    • $50 <= 2 days, $500 <= 60 days

  • FDIC Insurance limits ($250K)


Time value of money

Time Value of Money

  • Future value of an amount saved

    • FV = Amount x (1 + i)n

  • Present value of an amount to be received

    • PV = Amount ÷ (1 + i)n

  • Future value of a series of equal deposits

    • FVA = Deposit x FVIFA (future value interest factor for an annuity)

    • FVIFA = [ (1 + i)n – 1] ÷ I

  • i = Annual rate ÷ number of compound periods per year

  • n = Number of years x number of compound periods per year


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