Introduction to Financial Planning (PDF | 650KB)
Introduction to Financial Planning (PDF | 650KB)
Introduction to Financial Planning (PDF | 650KB)
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Why Personal <strong>Financial</strong><br />
<strong>Planning</strong> Makes Sense<br />
Mark Vanderberg<br />
Paul French
<strong>Introduction</strong><br />
• Session One: Managing Your Money<br />
• Session Two: Protecting Yourself<br />
• Session Three: Investments
Managing Your Money: A<br />
• Human Capital<br />
Holistic Perspective<br />
• Life Phases<br />
• Life Styles<br />
• Career Goals and<br />
Objectives<br />
• <strong>Financial</strong> Capital<br />
• <strong>Financial</strong> Literacy<br />
• Current vs Future<br />
Consumption<br />
• Wants vs Means<br />
• Time Value of Money
Inves<strong>to</strong>r Behavior is the<br />
DOMINANT<br />
Fac<strong>to</strong>r affecting Real<br />
Lifetime Returns
Chasing performance is not a goal<br />
Trying <strong>to</strong> time the markets is not a goal<br />
Having your investments perform better than<br />
your neighbor is not a goal
Chasing performance is not a goal<br />
Trying <strong>to</strong> time the markets is not a goal<br />
Having your investments perform better than<br />
your neighbor is not a goal<br />
Creating wealth that you do not outlive in<br />
retirement, that will send your kids <strong>to</strong><br />
college, and that will provide something<br />
for those you must one day leave behind.<br />
That is a goal.
Chasing performance is not a goal<br />
Trying <strong>to</strong> time the markets is not a goal<br />
Having your investments perform better than<br />
your neighbor is not a goal<br />
Creating wealth that you do not outlive in<br />
retirement, that will send your kids <strong>to</strong><br />
college, and that will provide something<br />
for those you must one day leave behind.<br />
That is a goal.<br />
To do that, you need <strong>to</strong> plan
Road Map <strong>to</strong> <strong>Financial</strong> Health<br />
• Step One: Where are you<br />
now<br />
• Step Two: Where do you<br />
want <strong>to</strong> be<br />
• Step Three: Develop a<br />
Road Map<br />
• Step Four: Begin the<br />
Journey<br />
• Step Five: Check Your<br />
Progress
Life Phases<br />
• Early Years<br />
• Golden Years<br />
• Retirement Years
Early Years<br />
• Job and Career<br />
• Family<br />
• Taxes<br />
• Unexpected Events
Principles Every Young Person<br />
Should Know<br />
1. Know your take-home pay.<br />
2. Pay yourself first.<br />
3. Start saving young.
Principles Every Young Person<br />
4. Compare interest rates.<br />
Should Know<br />
5. Don’t t borrow what you<br />
can’t t repay.<br />
6. Budget your money.
Principles Every Young Person<br />
7. Money doubles by the<br />
“Rule of 72”.<br />
Should Know<br />
8. High returns equal high<br />
risks.<br />
9. Don’t t expect something<br />
for nothing.
Principles Every Young Person<br />
10. Map your financial<br />
future.<br />
Should Know<br />
11. Your credit past is your<br />
credit future.<br />
12. Stay insured.
Reference<br />
• Books<br />
• Personal Finance: Turning Money In<strong>to</strong> Wealth- Arthur J. Keown<br />
• Wall Street Journal Guide To Understanding Personal Finance<br />
• The Only Other Investment Guide You’ll Never Need- Andrew Tobias<br />
• Smart Couples Finish Rich- David Bach<br />
• Asset Allocation: Balancing <strong>Financial</strong> Risk- Roger C. Gibson<br />
• Magazines<br />
• Money Magazine<br />
• Kiplinger Personal Finance<br />
• Smart Money<br />
• Websites<br />
• http://www.billshrink.com/blog/16-depression<br />
depression-era-money-saving-tips/#more-2240<br />
• www.360financialliteracy.org<br />
• www.morningstar.com
Questions Rule of 72 = MC2
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