personal finance 4 - 1144 Words

1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points) I put money into a financial reserve for college. I will not touch the money till then. I can add but not subtract from it. 2. How many months worth of expenses do you think your financial reserve should include? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) As many as I can have saved up into it. Depends on wether I am working, and what my income is. Cause I could lose a job. 3. Would you rather have a savings account that offered simple interest, or an account that offered compound interest? Why? (3-6 sentences. 2.0 points) It would†¦show more content†¦Also referred to as shareholders equity.In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocaon planning to structure a desired risk and return profile for an investors portfolio. Investopedia explains Equity The terms meaning depends very much on the context. In finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owners equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company. 11. If you were a new investor who wanted to invest in stock, would you prefer to invest in registered public stock, or unregistered private stock? Why? (2-4 sentences. 1.0 points) I would incest in unregisteredShow MoreRelatedPersonal Finance Unit 41202 Words   |  5 PagesBrittany James FIN 1100 Module 4 Home Work Assignments [Answer all questions in details] 1.|Matthew Boyd asks for your help! He has saved $10,000 and wants to invest in common stock. Choose one of the long-term or short-term techniques described in this chapter and - long term technique: Dollar cost averaging †¢ explain how that method could help Matthew achieve his investment goals. - this method Dollar cost averaging is a long-term technique used by investors whoRead MoreFp101 Week 1 Dq Answers1559 Words   |  7 Pagesby clicking on Reply:   Refer to Figure 1-1 of Personal Finance. List the five steps in the personal financial planning process. Share one or two questions you may ask yourself when you are in Step 1.   According to Figure 1-1 of Personal Finance, the five steps in the personal financial planning process are: Step 1 – Analyze your current finances, Step 2 – Develop goals, Step 3 – Identify and evaluate strategies to achieve your goals, Step 4 – Establish and implement your plan, Step 5Read MorePersonal Financial Planning1579 Words   |  7 Pages | | |2011-2012 Academic Year | ADM 3445 (FR01B) Personal Financial Planning Course Outline Instructor: E. Otuteye Term: Winter 2012 Office: SH 362 Day(s): W Phone: 506 458-7354 Time: 7:00-9:50pm Email: otuteye@unb.ca Classroom: SH 161 Office hours: Th, F 2:00 – 3:00;Read MorePersonal Budgeting1059 Words   |  5 PagesPersonal Budget Summary and Findings ACC 547/Taxation Michael De Marco Personal Budget Summary and Findings Memo DATE: October 1, 2012 TO: Henry and Mary Jones FROM: RE: Follow-up on Financial Planning Meeting It was a pleasure to meet with both of you to discuss your personal finances, your financial dreams, and concerns. As we discussed, being in control of your personal finances, and not your finances being in control of you, is very important. When you are in control of yourRead MoreTraditional Methods Of Managing Personal Income1641 Words   |  7 PagesThere are three traditional methods of managing personal income. 1. Budgeting, 2. Keeping a spending history, and 3. Doing nothing (also known as living from paycheck to paycheck). Budgeting involves setting what percent of future income is to be spent on which categories of expenses, and then recording all purchases in order to track how well spending is staying within the predefined limits. The process sounds very simple, however, it is difficult, in my opinion, to stick with a budget for veryRead MorePersonal Financial Goals And Objectives Essay1044 Words   |  5 Pagesnecessary when you are further from the set goal. When it comes to money, most individuals would love to manage their personal finances so that they achieve maximum satisfaction from each available currency. To achieve this goal, you must first identify the financial goals and set priorities. Personal financial planning is the process through which individual manages their finances to achieve maximum satisfaction. It does not matter if you are self-employed, highly paid executive or newly employedRead MoreAssessment of Personal Financial Wellness of Teachers1115 Words   |  5 Pagesdaily cash inflows and outflows in personal finances will help make tough situations less stressful and easier to handle. Cash (1996) Among five risk stressors in life ( relationships, work, health , crime/violence, amp; personal finance), personal finance was rated as the number one source of stress, concerns about personal finance are five times higher than those regarding health. Garman et al (1996) research has indicated a relation between personal finance stress and backache, alcoholism,Read MoreThe Importance Of The American Dream1628 Words   |  7 Pageswhich a private employer guaranteed a pension based upon years of service and compensation. To no surprise, these plans are ailing, or disappearing as well. As late as the 1980 s, 60% of US employers offered this benefit; today that number stands at 4%. To those who have all of their eggs in this basket, the outcome is clear; retirement will not be the golden years they had hoped for. The expectation of Social Security or a pension providing the funds needed for retirement are rapidly dwindling, nowRead MorePersonal Statement : Personal Finan ce1607 Words   |  7 PagesPersonal Finance Personal finance decision is a very important decision as it involves management of day-to-day finances of an individual or his family. Personal finance includes not only obtaining, budgeting, saving, and spending monetary resources over time but also taking into account various financial risks and future life events. It includes all activities which an individual is concerned about like investment, insurance, tax, debt servicing, mortgages etc. Financial planning involves analysingRead MoreFinancial Literacy Is The Key For Managing Money895 Words   |  4 Pagesstudents score on a standardized personal finance test. The results generated in this studied showed 6,700 U.S. high school students scored an average of 52 percent on this test. But, this was not the worst thing found in the study by the researchers at University of Nebraska. The worst thing found was a gender gap in the results of this personalized finance test. With boys scoring more than girls in 20 of 23 subjects in the test. Subjects areas in this personalized finance test consisted of budgeting