Financial Planning: Retirement and Estate

Retirement planning = Determining how much money should be set aside each year for retirement and how to invest those funds Estate planning = Determining how your wealth will be distributed before or upon your death Cash inflows = Cash that you receive Cash outflows = Cash that you spend

Financial plan = Enhances your net worth Budgeting = Balances income and spending Liquidity = Deals with cash excesses or shortages Retirement planning = Affects how much cash you have available

Building Your Own Financial Plan = Enhances your net worth Budgeting = Allows you to plan how you will use the cash you receive in a given period Insurance planning = Part of a plan for your retirement and estate Liquidity management = Deals with managing cash excesses or shortages

<p>All Rights Reserved A Plan for Your Retirement and Estate = Includes insurance planning, retirement planning, and estate planning How Financial Plan Decisions Affect Your Cash Flows (1 of 13) = Explains how cash inflows and outflows relate to budgeting and liquidity management Tools for Financial Planning = Includes college tuition, car, house as part of budgeting decisions How Financial Plan Decisions Affect Your Cash Flows (2 of 13) = Discusses planning cash usage in a given period.</p> Signup and view all the answers

<p>Personal finance = the process of planning your spending, financing, and investing to optimize your financial situation Personal financial plan = a plan that specifies your financial goals and describes the spending, financing, and investing plans that are intended to achieve those goals Opportunity cost = what you give up as a result of a decision Financial advisor = a career opportunity</p> Signup and view all the answers

<p>Chapter Objective 1.1 = Explain how you benefit from personal finance Chapter Objective 1.2 = Identify the key components of a financial plan Chapter Objective 1.3 = Explain how financial planning affects your cash flows Chapter Objective 1.4 = Outline the steps involved in developing your financial plan</p> Signup and view all the answers

<p>Make your own financial decisions = Every spending decision has an opportunity cost Judge the advice of financial advisors = Make informed decisions Become a financial advisor = Many career opportunities available Personal finance knowledge = Optimizing your financial situation</p> Signup and view all the answers

<p>Physical therapy aides = 40% Skincare specialists = 40% Physician assistants = 38% Segmental pavers = 38%</p> Signup and view all the answers

<p>Physical therapy aides = $23,880 Skincare specialists = $28,640 Physician assistants = $90,930 Segmental pavers = $33,720</p> Signup and view all the answers

<p>Helpers for electricians = 38% Information security analysts = 37% Occupational therapy aides = 36% Health specialties = 36%</p> Signup and view all the answers

<p>Physician assistants = $90,930 Information security analysts = $86,170 Health specialties = $81,140 Physical therapists = $79,860</p> Signup and view all the answers

<p>Physical therapy aides = 40% Physician assistants = 38% Occupational therapy aides = 36% Medical secretaries = 36%</p> Signup and view all the answers

<p>Skincare specialists = $28,640 Helpers for electricians = $27,670 Occupational therapy aides = $26,850 Medical secretaries = $31,350</p> Signup and view all the answers

<p>Budgeting and tax planning = The process of forecasting future expenses and savings Managing your liquidity = Access to funds to cover short-term cash deficiencies Financing your large purchases = Decisions regarding how much credit to obtain Protecting your assets and income (insurance) = Safeguarding against financial loss</p> Signup and view all the answers

<p>Assets = What you own Liabilities = What you owe Net worth = Value of what you own minus the value of what you owe Liquidity = Access to funds to cover short-term cash deficiencies</p> Signup and view all the answers

<p>Money management = Decisions regarding how much money to retain in a liquid form Credit management = Decisions regarding how much credit to obtain to support spending Budget planning = The process of forecasting future expenses and savings Investing your money = Allocating funds among short-term investment instruments</p> Signup and view all the answers

<p>2011 = All Rights Reserved A Plan to Manage Your Liquidity (2 of 2) 2017 = All Rights Reserved A Plan for Your Budgeting and Tax Planning 2014 = All Rights Reserved A Plan to Manage Your Liquidity (1 of 2)</p> Signup and view all the answers

<p>Industrial organizational psychologist = $83,580 Personal care aides = $19,190 Home health aides = $20,820 Interpreters and translators = $45,430</p> Signup and view all the answers

<p>Insulation workers = 47% Diagnostic medical sonographers = 46% Genetic counselors = 41% Physical therapy assistants = 41%</p> Signup and view all the answers

<p>Masons = Construction workers who build structures like walls and buildings using bricks or stones Occupational therapy assistants = Work under the direction of occupational therapists to provide rehabilitative services to people with mental, physical, emotional, or developmental impairments Personal care aides = Assist clients with daily living activities in their home or in a care facility Interpreters and translators = Convert information from one language to another for communication between people who speak different languages</p> Signup and view all the answers

<p>Reduction in new job opportunities = Fewer chances for employment for job seekers Elimination of some jobs = Job loss for some workers Lower salaries for existing jobs = Decrease in income for employed individuals Value of many assets declined = Reduction in worth of investments and properties</p> Signup and view all the answers

<p>Industrial organizational psychologist = Workplace behavior and productivity enhancement Diagnostic medical sonographers = Performing ultrasound imaging procedures for medical diagnosis Genetic counselors = Providing information and support to individuals with genetic disorders or at risk of inherited conditions Physical therapy assistants = Assisting physical therapists in providing treatment and rehabilitation services to patients</p> Signup and view all the answers

<p>Home health aides = Assisting elderly or disabled individuals with daily tasks at home Insulation workers = Installing materials to help control temperature and sound in buildings Occupational therapy assistants = Aiding patients in developing or recovering skills needed for daily living and working Personal care aides = Supporting clients in personal hygiene, meal preparation, and medication management</p> Signup and view all the answers

<p>Facing detention according to the UAE Federal Penal Code</p> Signup and view all the answers

<p>Record checks in your checkbook as you write them</p> Signup and view all the answers

<p>Debit cards tied to your checking account</p> Signup and view all the answers

<p>A cheque being returned due to insufficient funds</p> Signup and view all the answers

<p>Physical cheque deposits</p> Signup and view all the answers

<p>Fees charged by the bank</p> Signup and view all the answers

<p>Savings institutions</p> Signup and view all the answers

<p>UAE central bank</p> Signup and view all the answers

<p>Credit unions</p> Signup and view all the answers

<p>Commercial banks</p> Signup and view all the answers

<p>To reflect changes in economic conditions</p> Signup and view all the answers

<p>Commercial banks</p> Signup and view all the answers

<p>The bank is responsible for paying the amount, not the purchaser.</p> Signup and view all the answers

<p>Certificate of deposit</p> Signup and view all the answers

<p>2.5%</p> Signup and view all the answers

<p>Traveler's check</p> Signup and view all the answers

<p>The guarantee of return even in case of bank bankruptcy</p> Signup and view all the answers

<p>Interest rates on deposits and loans</p> Signup and view all the answers

<p>To compensate investors for accepting more risk</p> Signup and view all the answers

<p>As a result of the risk premium added by financial institutions</p> Signup and view all the answers

<p>It increases as firms must pay a higher premium to sell securities</p> Signup and view all the answers

<p>Because individuals with limited incomes can less afford losses</p> Signup and view all the answers

<p>More willing</p> Signup and view all the answers

<p>To earn a profit from the interest rate spread</p> Signup and view all the answers

<p>Focusing on safe investments, even if they offer lower returns</p> Signup and view all the answers

<p>Avoid all risks</p> Signup and view all the answers

<p>Relationship between maturities of risk-free debt securities and annualized yields</p> Signup and view all the answers

<p>Financial publications like the Wall Street Journal</p> Signup and view all the answers

<p>By accepting deposits and providing loans to individuals and firms</p> Signup and view all the answers

<p>Choosing safe investments even if they offer lower returns</p> Signup and view all the answers