AFF 502 Chapter Notes - Chapter 1: Credit Union, Up To Date, Certified Financial Planner
1 Jun 2017
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A series of decisions on how much money you need at some future time in order to meet your goals, and how you will get that money. Two sources of money: some money now (which earns more money as you invest it overtime) and have money by working (you consume some of that money as well = net amount is savings). The saved money goes into the investment pot with the previous savings and earns investment income. Financial goal: existing savings + investment income for n years on the existing savings + (earnings . Consumption each year) + investment income on the annual savings. The level of interest rates and inflations, trends in consumer spending, and expectations about future incomes, all affect personal financial planning. Today we find ourselves in a world of 2% inflation. Now, however, incomes are falling, unemployment is widespread and seemingly permanent for a growing number of people.
