AAEC 2104- Final Exam Guide - Comprehensive Notes for the exam ( 27 pages long!)
29 Mar 2018
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Topics in financial planning: taxes, budget, goals, loans, amd, security investments, savings, ira. Constantly changing: laws and regulations, life events, changing goals. Consumer debt: credit cards, student/car loans (~10%) The financial planning process: evaluate your current financial condition, define your financial goals, develop a plan of action, implement your plan, review your progress, re-evaluate your situation/goals and revise your plan. Define your financial goals short term (less than 1 year) intermediate (1-10 years) long term (over 10 years) Flexible: plan for life changes and the unexpected. Liquidity: accessing cash quickly and easily. Protection: prepare for the unexpected with insurance. Managing taxes: keep more of what you earn. Have 3 reasons for doing something or for not doing something. The early years: expenses > income. The earning years: starting in the work force. The golden years: prime earning years. The retirement years: expenses are probably > income, nothing happens without a plan. Principles of financial planning: the best protection is knowledge.
