Stock Market Analysis and Personal Finance Mr. Bernstein Financial Decisions and Goals, pp 6-18 September 2016

Stock Market Analysis & Personal Finance Mr. Bernstein Personal Financial Planning Determine Your Current Financial Situation Develop Your Financial Goals Identify Your Options Evaluate Your Alternatives Create and Use Your Financial Plan of Action Review and Revise Your Plan

Stock Market Analysis & Personal Finance Mr. Bernstein Risks to a Financial Plan In this course we will learn how to best manage: Inflation Risk Interest Rate Risk Income Risk Liquidity Risk Personal Health and Safety Risk

Stock Market Analysis & Personal Finance Mr. Bernstein Developing Personal Financial Goals Time Frames Short-Term (ie <1 year) Intermediate (ie 2-5 years) Long-Term (ie 5+ years)

Stock Market Analysis & Personal Finance Mr. Bernstein Developing Personal Financial Goals Life Cycle Young Single Adult Young Couple / No Children (DINKs) Couple with Young Children Single Parent with Children Middle Aged Adult Older Couple with Children Grown and Gone

Stock Market Analysis & Personal Finance Mr. Bernstein Developing Personal Financial Goals Young Single Adult (s/t, intermediate) Obtain Career Training Become Financially Independent Obtain Health Insurance Develop Savings Plan Manage Credit Carefully Couple with Young Children (more focus on l/t) Purchase a Home Start College Fund Begin Retirement Savings for all phases of a typical lifecycle see figure 1.2 on page 13

Stock Market Analysis & Personal Finance Mr. Bernstein Developing Personal Financial Goals Figure 1.2 from book

Stock Market Analysis & Personal Finance Mr. Bernstein Monthly Budget Young Single Adult Income categories Expense categories

Stock Market Analysis & Personal Finance Mr. Bernstein How does the Economy Affect Your Plans and Budgets? Measurements of Economic Conditions: GDP (Gross Domestic Product) Inflation and CPI Interest Rates Monetary Policy & Money Supply Fiscal Policy: Government Spending & Tax Rates Unemployment Rate