Solution Manual for Personal Financial Planning 15th Edition by Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Personal Financial Planning 14th Edition By Randy Billingsley; Lawrence J. Gitman; Michael D. Joehnk
Personal Financial Planning 14th Edition By Randy Billingsley; Lawrence J. Gitman; Michael D. Joehnk
All for this textbook (17)
Written for
Personal Financial Planning 14th Edition By Randy
All documents for this subject (3)
Seller
Follow
kushboopatel6867
Reviews received
Content preview
Test Bank For Personal Financial Planning 14th Edition By
Randy Billingsley; Lawrence J. Gitman; Michael D. Joehnk
Main Goals of personal finance planning - ANSWER: - the process of managing your
money to achieve personal economic satisfaction
- Increase effectiveness in obtaining, using, and protecting financial resources
- Increase control of one's financial affairs
- Improve personal relationships
- Gain a sense of freedom from financial worries
What is a financial plan? - ANSWER: An action plan that identifies ways to achieve
financial goals
Time value of money - ANSWER: - Every financial decision involves giving up
something to obtain something else
Personal opportunity costs - ANSWER: Time
Health
Leisure
Steps in the planning process - ANSWER: o Determine current financial situation
o Develop your financial goals
o Identify alternative courses of action
o Evaluate alternatives
Consider: - ANSWER: • Life situation
• Personal values
• Economic factors
Asess: - ANSWER: - Risk
- Time value of money
- Opportunity cost
Create and implement your ________ - ANSWER: financial action plan
_______ and revise the financial plan - ANSWER: Review
Sources for financial planning - ANSWER: o Books
o Magazines
o Etc
Steps in career planning - ANSWER: o Asses and research personal goals, abilities and
career fields
, o Research the employment market and identify specific employment opportunities
o Develop a resume and cover letter; apply for available positions
o Interview for available positions; asses your interview performance
o Evaluate financial and other factors of positions you are offered
o Plan and implement a program for career development
Tax deferred employee benefits - ANSWER: o Taxed at some future time
o IRA (tax deductible now, taxable later)
Calculate net worth - ANSWER: Assets - liabilities = Net worth
Define insolvent - ANSWER: o Can't pay bills
o Net worth negative
Gross salary: what's taken? - ANSWER: o Net salary = gross take-home pay
o Social Security
o Medicare
o Income Tax
Why do we have taxes? - ANSWER: For the government to use for government
funded programs
What types of taxes are there? - ANSWER: o Property
o Income
o Estate
o Inheritance
o Sales
o Excise
Marginal tax rate - ANSWER: Highest bracket that is paid
Itemized deductions - ANSWER: o Charitable contributions
o Mortgage interest
o Property taxes
o Some medical expenses- Medical equipment
Emergency fund - ANSWER: 3 - 6 months
Calculate return on investment - ANSWER: Current return / face value
- Capital gain for difference
Greatest return on investments - ANSWER: o Highest grow rate: stocks
o COMMON STOCKS
Least liquid investment - ANSWER: o Real estate
o 2-3% return/growth per year
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
