Lecture 1 introduction to personal financial planning. Includes a range of recommendations to achieve goals over a specific time frame: need to action recommendations. Current position what do they have now: assets, liabilities, income , expenditure, super, insurance. What is their risk tolerance: type of investments. Assess risk v. volatility (uncertainly of the market) - need to know tolerance to these: self risk insurance needs. Emphasis on the client and personal financial planning holistic, not just transaction based. Economic environment of 1980s and substantive changes in government policy. Poor levels of domestic saving: 1980"s high interest rates + high inflation, credit card problem. Advisors need an awareness of the impact of economic environment & global economy: Economies are cyclical in nature and essentially the business cycle is divided into 4 phases: Boom (peak) - high employment and economic growth, increase in inflationary conditions. Contraction (downswing) - economic growth starts to slow, level of unemployment begins to rise, falling retail sales.