MPA C APSTONE C LASS 2016 F INANCIAL F UTURE. F INANCIAL T OPICS Borrowing Decisions Mortgages and interest rates Dealing with the banker Credit Ratings.

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Presentation transcript:

MPA C APSTONE C LASS 2016 F INANCIAL F UTURE

F INANCIAL T OPICS Borrowing Decisions Mortgages and interest rates Dealing with the banker Credit Ratings Paying off student loans Saving Decisions 401K allocations Saving and IRA’s Roth versus traditional IRA’s Inflation

F INANCIAL I NTERMEDIATION

I NFORMATION Bloomberg Wall Street Journal New York Times The Economist

F INANCIAL M ARKETS AND C URRENT C ONDITIONS Debt versus equity Credit Markets (Bonds) Equity Markets (Stocks) Foreign Exchange Markets Commodity Markets

D EBT Compensated with interest Priority in the case of a bankruptcy No rights to participate in profits

E QUITY Ownership in company Compensation through dividends and capital gains Residual claimant in the case of bankruptcy

M ORTGAGES Bankrate.com Interest Rates Fixed Adjustable Time to Maturity Points Loan Amortization Private Mortgage Insurance

R EAL E STATE AND C REDIT M ARKETS Zillow Federal Reserve Economic Data US Treasury Corporate Bonds Municipal Bonds

M ANAGING C REDIT Prime Rate FICO score Credit cards Credit history Debt service ratio

I NFLATION Consumer Price Index Current rate of inflation Real interest rate

S AVINGS AND T AXES Capital Gains 401K and employer contributions Regular IRA’s Roth IRA’s

401K A LLOCATIONS Debt Equity Real Estate

I MMEDIATE Actively manage your 401K Learning money Buy some part of a company Treasury Direct Buy and hold Real Estate