Introducing Personal Finance Walt Woerheide

Chapter 1

Learning Objectives (part 1 of 2) Define the six steps of the personal financial planning process Describe the five strategies to managing one's finances Identify the various types of financial planners and how they are compensated Define what is meant by human capital

Learning Objectives (part 2 of 2) Describe how to select a job or a career Find a job using the Internet Decide among two or more job offers based on both salary and location

The Six Steps of the Personal Financial Planning Process (part 1 of 2) Define your current situation Define where you want to go Identify the barriers to getting where you want to go

The Six Steps of the Personal Financial Planning Process (part 2 of 2) Develop a written plan Implement the plan Regularly review and revise the plan

Examples of the Miscues of Life (part 1 of 2) Premature Death Divorce Health Problems Unemployment

Examples of the Miscues of Life (part 2 of 2) Casualty and Theft Losses Being Sued Significant Investment Losses

Five Strategies of Financial Planning Annual Saver Lifetime Saver Annual Balanced Lifetime Balanced Lifetime Spending

Who is a Financial Planner? (part 1 of 2) Certified Financial Planner ™ (CFP) Chartered Financial Consultant (ChFC) Certified Public Account with a specialization in financial planning (CPA)

Who is a Financial Planner? (part 2 of 2) Lawyer Insurance Agent (Chartered Life Underwriter (CLU)) Stockbroker

How are financial planners paid? Fee based Commission based Combination fee & commission

What questions should one ask a financial planner? (part 1 of 2) What experience do you have? What are your qualifications? What services do you offer? What is your approach to financial planning? Will you be the only person working with me?

What questions should one ask a financial planner? (part 2 of 2) How will I pay for your services? How much do you typically charge? Could anyone besides me benefit from your recommendations? Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career? Can I have it in writing?

What is human capital? The ability of the individual to generate income from work-related activities. For many people, and particularly college students and recent graduates, it is their largest single asset. It is expensive to acquire (in most cases), and has unusually high rates of return.

Using the Internet for Career Information and Job Opportunities (part 1 of 2) Key trends in employment Checking out salaries Locating career fairs

Using the Internet for Career Information and Job Opportunities (part 2 of 2) Advertising one’s self Cost-of-Living Comparisons Internships and Coops

How to find things on the Internet Guess at the address (.org,.edu,.com,.gov) If full address is defective, may have rearranged site (Lop off links one by one) Search engines ( Tricks to use with search engines (quotations, plus signs & minus signs)