1. MONEY MANAGEMENT TEST PREP

2. Social Security Income Based on average income of working years Average income $40k Average income $60k Average income $95 k Who earns the > social security income?

3. Strategies Saving and investing 1 must financial plan

4. Financial plans Age 25 Age 35 Age 45 Age 55 Age 65 Different stages of life Financial plans adjusted----goals

5. Traditional IRA $30K ANNUAL INCOME $3K TRADITIONAL IRA CONTRIBUTION TAXABLE INCOME $27K

6. EMERGENCY FUND 4- 12 MONTHS INCOME FUNDS SHOULD BE INSURED AND LIQUID

7. FINANCIAL GOAL PAY OFF $5K CREDIT CARD IN 2 YEARS--------------WELL STATED BUY A HOUSE----WHEN? BUY A $15K CAR IN HOW LONG??

8. CAPITAL GAINS –HOLD AN INVESTMENT FOR LONGER THAN 1 YR-----PAY LOWER % CAPITAL GAIN TAX –HOLD AN INVESTMENT SHORTER THAN 1 YEAR PAY HIGHER % CAPITAL GAIN TAX

9. CAPITAL GAIN STOCK GAIN JAN 1-DEC 26 $50K PAY > CAPITAL GAIN TAX FEB 2--- FOLLOWING YEAR FEB 22 $50K PAY < CAPITAL GAIN TAX

10. EXCISE TAX CIGARETT GASOLINE HOTELS STATE AND FRDERAL GOVT IMPOSES TAX

11. DEBT RATIO RELATIONSHIP BETWEEN DEBT AND NET WORTH LOWER RATIO BETTER OFF FINANCIALLY THE PERSON IS JOE THE PLUMBER

12. BUDGET VARIANCE WINTER SNOW MAYOR NYC– NEEDS TO PAY SANATION WORKERS TO PLOW SAVED $25K FOR SNOW NEEDS $40K GETS CASH FROM- CUTTING BACK LIBRARY HOURS