Personal Finance Bill Klinger

Personal Finance Introductions Me You Syllabus Class procedures Class expectations A study showed that 83% of people who lost their job, lost it because of attendance or attitude. Check out money.cnn.com Personal Finance tab investor.vanguard.com

Financial Decisions Should I buy a car or pay off my credit card first? How big of a house can I afford? What should I invest in? Do I have enough insurance? Will I be able to retire early? Should I take the cash value or the annuity in the lottery?

Financial Planning Why bother? What is it? Do you need a financial advisor?

Financial Plan Budgeting and tax planning Managing liquidity Financing large purchases Insurance Investing Retirement and estate

Budgeting Start with after-tax income Identify expenses Remainder is saving Opportunity cost What you give up as a result of a decision What are the opportunity costs of Buying an expensive car? An unlimited data plan for your phone? Buying Starbucks coffee every day? How much do you save?

Cash Flow Income “Cash” Expenses Liquidity Retirement & Estate saving spending “Cash” Expenses deposits investments credit Liquidity Retirement & Estate loans premiums investments Financing Insurance Investing

Financial Plan Goals Current financial position Alternatives / Options Short Intermediate Long-term Current financial position Alternatives / Options Establish plan Track your finances Revise as conditions change