FHCE 5200 Lecture Notes - Lecture 3: Unsecured Debt, Tax Rate, Fiduciary

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 5200
• Professor: G O E T Z

Document Summary

Fiduciary -> easier to do what is best for the client under this standard. Suitability -> system might be a little harder to do what is best for client, cannot recommend the very best option. When looking at case studies determine the 2 answers based on that family"s needs (stable or unstable) If both people could lose their job anytime 8-9 months savings would be good. Is it"s a professor with a secure job they really don"t need any emergency fund at all. If you have a high stability you should move your unsecured debt to secured and get a lower interest rate. If you have a low stability should move secured debt to unsecured debt so creditors can"t take away your things like your home or car. Option 1. put money in mortgage you would save 4 cents about 3 cent return. Option 2. put money in 401k save 40 cents, 7 cent return plus an employer match potentially.