Solutions For Personal Finance, Turning Money into Wealth, 9th Edition Keown (All Chapters included)
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Course
Personal Finance
Institution
Personal Finance
Complete Solutions Manual for Personal Finance, Turning Money into Wealth, 9th Edition by Arthur J. Keown ; ISBN13: 9780137672042. Full Chapters included Chapter 1 to 17.
1.The Personal Financial Planning Process.
2.Measuring Your Financial Health and Making a Plan.
3.Understanding and Appreciat...
Personal Finance
Turning Money into Wealth
9th Edition
by Arthur J. Keown
Complete Chapter Solutions Manual
are included (Ch 1 to 17)
** Immediate Download
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** All Chapters included
, CHAPTER 1
THE FINANCIAL PLANNING PROCESS
CHAPTER CONTEXT: THE BIG PICTURE
This chapter introduces the financial planning process and is the first chapter in the four-chapter
section entitled “Part 1: Financial Planning.” This section of the text introduces the financial
planning process, demonstrates the use of quantitative tools for measuring financial well-being,
explains the importance of considering the time value of money in the financial planning process,
and shows the impact of taxes on financial decisions. Chapter 1 establishes the foundation of the
text by convincing students of the need for financial planning, the steps to be followed, and the
benefits to be gained. Basic “principles” of financial management logic are introduced and serve
to integrate the remainder of the text.
CHAPTER SUMMARY
This chapter establishes the importance of financial planning as a continuing process for achieving
current and future financial, or lifestyle, objectives. A five-step process for personal financial
planning is introduced. Setting financial goals is established as the cornerstone of the financial
plan. The three stages of the financial life cycle provide a framework for considering the evolution
of a financial plan in response to changing goals. Finally, the relationships among education,
earnings potential, career choice, and career management are established. The chapter concludes
by introducing the ten principles that guide financial planning and integrate the remainder of the
text.
LEARNING OBJECTIVES AND KEY TERMS
After reading this chapter, students should be able to accomplish the following objectives and
define the associated key terms:
1. Explain why personal financial planning is so important.
2. Describe the five basic steps of personal financial planning.
a. liquidity
3. Set your financial goals.
a. estate planning
b. inflation
4. Explain how career management and education can determine your income level.
1
, 2 Keown v Personal Finance, Ninth Edition
5. Identify and explain how skills acquired in this course will help you get a job and advance in it.
6. Explain the personal finance lessons learned in the recent pandemic.
7. List the ten principles of personal finance.
CHAPTER OUTLINE
I. Facing Financial Challenges
A. How might student loan debt affect your future?
B. Why isn’t personal financial planning easy?
C. What can you accomplish as a result of this text and course?
1. Manage the unplanned
2. Accumulate wealth for special expenses
3. Save for retirement
4. “Cover your assets”
5. Invest intelligently
6. Minimize your payments to Uncle Sam
II. The Personal Financial Planning Process
A. Step 1: Evaluate Your Financial Health
B. Step 2: Define Your Financial Goals
1. Specifically define and write down your financial goals
2. Attach a cost to each goal
3. Set a date for when the money is needed to accomplish the goal
C. Step 3: Develop a Plan of Action
1. Flexibility
2. Liquidity
3. Protection
4. Minimization of taxes
D. Step 4: Implement Your Plan
E. Step 5: Review Your Progress, Reevaluate, and Revise Your Plan
III. Establishing Your Financial Goals
A. What are the time horizons for financial goals?
1. Short term
2. Intermediate term
3. Long term
B. Why is it important to prioritize, rank, and reevaluate goals so that they become the
cornerstone of your financial plan?
C. The Life Cycle of Financial Planning
1. Stage 1: The Early Years—A Time of Wealth Accumulation (through age 54)
2. Stage 2: Approaching Retirement—The Golden Years (ages 55–64)
3. Stage 3: The Retirement Years (ages 65 and over)
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