1. Phase 3 Exam Review 30 M/C, 30 T/F Questions Chapters 13 - 18 Personal Financial Planning FIN 235

2. Chapter 13: Investments A. Saving v-v Spending and Investing B. Importance of Goals and Time Horizons in planning investment strategy C. Difference between securities and other type of investments 1.Interest, Dividends, Capital Gains D. Defining Income and Cash Flow from Real Estate investments. E. Risk, Returns, and the Investment pyramid.

3. Chapter 14: Stocks and Bonds A. Acquiring shares in Public v-v Private Held Companies B. What are negotiable instruments C. Advantages of stock ownership from risk perspective 1.Importance of alpha measures 2.Dividend yields D. Use of proxies E. Types of Bonds 1.Callable, Mortgage, Debentures

4. Chapter 15: Mutual Funds A. Mutual Fund, Fund Families, Investment Companies B. Advantages of Mutual Funds C. Importance of Net Asset Values for open-ended mutual funds D. Difference between Open-ended and Closed end funds. E. Investment Objectives of REITs

5. Chapter 16: Real Estate and Other High Risk Investments A. Liquidity and Real Estate B. Importance of Depreciation for rental properties C. Establishing Value using Discounted Cash Flow method D. Measuring Cash Flow in RE investments E. Components of Real Estate F. Rationales for Speculating in Real Estate and High Risk Investments

6. Chapter 17: Retirement Planning A. Recommended percentages of income from retirement assets and social security. B. Estimating social security benefits 1.Eligibility requirements C. Comparing regular IRAs to Roth IRAs D. Difference between Defined Contribution and Defined Benefits plans 1.Contributory v-v Noncontributory plans

7. Chapter 18: Estate Planning A. Important Terms / Concepts 1.Probate 2.Estate Planning 3.Intestate 4.Joint Tenancy with right of survival 5.Contingent Beneficiaries 6.Durable Power of Attorney