FIN 310 FIN 310
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This 3 page Class Notes was uploaded by Tiffani Notetaker on Tuesday September 6, 2016. The Class Notes belongs to FIN 310 at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months taught by J. Parsons in Fall 2016. Since its upload, it has received 6 views. For similar materials see Personal Financial Management in Finance at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months.
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Date Created: 09/06/16
NOTES FROM 8/29/16 FIN 310-04 *Blue Chip Stocks: Thought to be over a long run, stable, large profitable, misconception however i.e. Kodak, GM, Exxon Mobil* Principles 1-10 for Personal Financial Planning Process 1. The Best Protection is Knowledge o Protection against danger of a bad investment advisor o Understand the importance of planning for your future o Make intelligent investments Know good changes in economy Interest rates o Apply to your situation 2. Nothing Happens Without a Plan o The things that do are not necessarily good o Do not avoid planning for the future 3. The Time Value of Money o Compound interest Interest paid on interest o Time is your ally 4. Taxes Affect Personal Finance Decision o Saving money throughout life Espec. Business running o Tax credits 5. Stuff Happens, or the Importance of Liquidity o “rainy day fund” o Cash reserve Most don’t have enough to satisfy liquidity o Should be a goal when getting income 6. Waste Not, Want Not--Smart Spending Matters o Budgeting o Spending wisely o Needs vs. wants Needs: Gas Food Shelter Health Insurance Wants: Vacations Designer clothes o Don’t go into debt for wants Spending money you don’t have NOTES FROM 8/29/16 o For needs, sometimes getting into debt has to happen Fairly good debt Student loans o No impulse purchasing o Do your homework Market pricing search for best price 7. Protect Yourself Against Major Catastrophes o Don’t do this on your own Unlike principle number five Get outside help: insurance o Robberies, personal health, death in family, chronic illness o Know when we really do need the insurance 8. Risk and Return Go Hand in Hand o Investing o Risk and return Risk is unavoidable Risk: chance of losing money, maybe all Guaranteed risk of losing money just by inflation No investing just save it in a bank o Take on the risk you’ll need it o The higher the risk, the higher the return o The lower the risk, the lower the return o Beware of investments that sound too good to be true They are 9. Mind Games, Your Financial Personality, and Your Money o Emotions take over money Fear Greed Same in investing o Investing If stocks go down Don’t get emotionally tied to the money o If so you may panic Causing a sell out Buy out It’s not always you o It’s the market o Ride it out 10. Just Do It! o Taking charge o Taking Initiative at a job Have automatic payroll deduction Women’s Issues o Have money set aside for +7 yrs. of retirement NOTES FROM 8/29/16 Women on average live 7 years longer than men o Women are charged more for certain products or services (the pink tax) Compounds the problem Must save even higher, even more i Chapter 2 Measuring Your Financial Health and Making a Plan Making a Plan=budget Balance sheet (accounting) o Snapshot moment in time (i.e. at the end of the year) Assets o Financial value of what you own Liabilities o What you owe to others Assets - Liabilities =Net worth o Can be negative or positive Look at assets o Categories o Come up with monetary value Monetary assets o $ cash or easily converted into cash o Checking and savings o Account balances o Art of deposits o CDs Investment Assets o Stock to bonds, life insurance, mutual bond, 1-5 yr. CD Retirement Plans o Pensions towards the vesting o Traditional IRA Tax for investing upfront up to $5500 (as of right now,) then pay ^ during retirement o Raw Tax Break at End Tax benefits when in but when out, no Find out the balance Housing and Real Estate o Fair market value Appraisers A person be willing to pay you Take without being pressured iPersonal Finance Turning Money into Wealth 7 Edition, Arthur J. Keown.
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