BUS-121: Financial Planning & Money Management

“Why should I think about retirement planning now? I have plenty of time!” That is what many younger adults ask themselves as they struggle to manage their current, day-to-day money management tasks. The answer is simple: If you don’t start planning now, your options become fewer and fewer and your choices become harder and harder. As we will learn in this presentation, more and more of the burden of providing an income in retirement is being placed squarely upon the shoulder of employees. It is not all bad news. In fact, the opportunities are there to create a substantial retirement income, especially if we start early and invest wisely. The pitfalls are also great, especially we fail to start early or invest poorly or as is often with case with too many individuals, do both. The good news if you do start early, you will be surprised at how little you need to sock away to have a substantial nest egg for your retirement. Start planning now! Start saving now!

We have a serious problem. Over the next 15 years, millions of Baby Boomers will be facing retirement and most all are simply not prepared for it. We discuss the implications of the coming tsunami wave of Baby Boomer retirees and what potential remedies we have to deal with it. Relax. It’s not as bad as the media make it out to be. We have dealt with serious problems in the past and we will deal with this one. Indeed, we are dealing with it at this very moment and things are not as bad as we thought they would be ... all for one major reason which we will reveal at the very end of the presentation.

No one enjoys thinking about a time when they will not be around anymore. Nevertheless, not dealing with estate planning can make your demise much more painful for your heirs. In this presentation, we discuss the various estate documents used in the estate planning process, including wills and trusts, as well as the important role of the competent legal professionals. We end with some advice about how to deal with a windfall. Thank you all for a great semester! We wish you the best of luck and success and hope to hear from you in the future about how this class helped you accomplish your financial goals in life.

It is said that real estate has created more millionaires in the United States than any other investment class. While this may be true -- it certainly seems plausible -- real estate is not without its risks. Ask those who bought that flipper condo in 2006. They lost their entire investment (their down payment) and still owe tens of thousands of dollars more than its current market value. In this presentation, we take a close look at real estate as an investment. We also take a quick look as some other investment alternatives and find that although these may be rewarding vehicles for some individuals, the vast majority of us are better off avoiding them altogether. Lastly, we cover Starting a Business, the Ultimate Investment! (It ain't fer everyone!)

Mutual funds truly are the “Investments for the Masses.” With as little as $25 to $50 per month, investors get professional money management and diversification, two great advantages. What are the disadvantages? Well, for starters, mutual fund investors get charged fees that the investors rarely understand. We briefly discuss the annual operating expenses and the various fee classes.

With over 12,000 mutual funds available, how and where do we start searching for the right one for us? It is not an easy task. We start by looking at just a sampling of the major categories of mutual funds, from the riskiest to the most conservative. In the next presentation, we will then focus on some of the major mutual fund families and look closely at a sample mutual fund.

In our final presentation, we then turn our attention to just a few of the major mutual fund families and their offerings and take a look at a sample mutual fund with a long track record. Lastly, we revisit dollar cost averaging and find that if we choose wisely, invest consistently, and remain patient, with a long time horizon, we might just be very wealthy one day. But remember: There are no guarantees!

There are three main theories of stock investing, fundamental analysis, technical analysis, and the efficient market theory. We examine all three and some of the various stock investing strategies as well as the concepts of asset allocation and rebalancing, and stock investing in retirement. We end this presentation with a discussion of the various sources of stock investments information.

When attempting to learn how to do something, does it not make sense to study those who are the experts at doing it? In this presentation, we introduce some of the "All Stars of Investing" and listen to what advice they can give us. We also take a look at a collection of famous myths and stupid sayings and try to learn from them what not to do! Lastly, we examine how can get started in a career in the stock market.

Stocks are exciting! Stocks are sexy! Stocks are risky! Welcome to our first presentation on stock investing. What are stocks? Why do corporations issue stock? Why do investors purchase stocks? We learn these and other fundamentals of stocks and stock investing, how investors purchase stocks, and the largest categories of stock types. Let's get started!

How can we say that stock investments have returned 8% to 10% over the long term? In the session, we discuss the various stock indexes that are used to measure the success (or lack thereof) of stock investing. We also learn how to compute some of the most popular and fundamental numerical measures of stock investments, including earnings per share, dividend yield, book value, market capitalization, and price-to-earnings ratio. We end by examining these numerical measures of some very well-known corporations.

What are the major investment asset classes? What returns can we reasonably expect from each over the long term? What risks are involved with each investment type? This presentation will answer these preliminary questions about the major investment types from a general perspective. We will then look at each in detail over the next several chapters.

Bonds are boring. Yep, there is no other way to get around that fact. But in the world of investing, boring can have many advantages. In general, bonds are reliable, consistent investments that during normal times, exhibit far less volatility than stocks and other riskier investments. (Volatility is the financial world's fancy way of saying, "You can lose a lot of money!") In this presentation, we delve into the world of bonds and you will learn why the famous industrialist Andrew Carnegie said, "Gentlemen prefer bonds."

No insurance can be more necessary and, at the same time, more evil than life insurance. For many decades, consumers groups and state insurance commissioners have advised consumers that they will almost always be better off choosing low-cost term life policies instead of high-cost whole life policies. Not surprisingly, for the same number of decades, the life insurance industry has steered people away from low-cost term life policies and toward costly whole life policies. Every few years, they change the name of whole life policies to confuse the public. The new spin is "permanent" life insurance. Don't be fooled. Get the facts in this presentation and learn why you are almost always better off if you "Buy Term and Invest the Difference."

Buying a home is a grueling ordeal! There is no other way to explain it. Yet, every year, hundreds of thousands of first-term home buyers enter the market and with a long-term perspective, they are usually well rewarded with both a home and a very good long-term investment. We investigate what you will encounter as you begin this journey. We will also discuss the effects of the 2000's housing bubble and disastrous aftermath. We end our discussion with learning how to calculate the principal and interest payments for fixed-rate mortgages and see that mortgage interest rates are the lowest they have been in decades.

The #1 Culture of Consumption Scandal in our country is our love affair with cars. After housing, your car is likely to be the item you spend most of your hard-earned dollars on. But do you know exactly how much your car is costing you? And you do understand your relationship with your motor vehicle? Your car is costing you more than money.

In this presentation, we build a typical homeowner's tax return. We cover the Form 1040, Schedule 1, and Schedule A, the homeowner's friend. We learn how to calculate gross income, adjusted gross income, taxable income, and income tax due. We see the effect of adjustments to income, the standard deduction or itemized deductions, and tax credits. What we hope you will see is that while the typical homeowner's tax return is not trivial, it is not as difficult to produce as you might have been led to believe. Let's get started!

We finish our chapter on taxes with discussions of tax resources, tax audits, and effective strategies for reducing your taxes. As we will see, one of the most effective methods for reducing taxes for upper-middle class taxpayers is to own a home. For those at the lower end of the home buying public, the tax savings from owning a home are not as great as the real estate professionals often make them out to be. For many at the lower end of the housing market, especially married couples, the Republican 2017 tax bill eliminated any tax savings from owning a home.

"In this world, nothing is certain but death and taxes." No one likes to pay taxes. While we can't help you avoid taxes altogether, there are various strategies for helping you pay fewer dollars in taxes. We start our discussion with the various types of taxes and we also learn how to calculate the effect of taxes on purchases. In other words, how much does it really cost you after you take into account the effect of taxes?

Welcome to our class! This first presentation is our introduction to the class. We present a definition and discuss the benefits of personal financial planning as well as how to develop a flexible financial plan. We end with a discussion of the influences on personal financial planning and present a road map that will take us through the entire semester.

One of the most common attributes of highly successful people is that they are goal oriented. We want to learn from them! In this presentation, we will learn how to create well-written goals that should help us attain the successes that all too often, people only dream about. We will also learn how to compute the future value of money and see that if we start young and are consistent, we can accumulate considerable sums simply by paying ourselves first each month ... before the cable payment, the cell phone payment, the credit card bill, the trash bill, the Saturday night fling, the daily trips to FiveBucks, etc.

This quick discussion will cover the financial aspects of career planning. One of the common misconceptions is that your career is the most important financial decision you will ever make. This is not true. Your career is important but it is not your most important financial decision. But if your career is not the most important financial decision, what is? What is the most important financial decision you will ever make? The answer will surprise you!

“Why should I think about retirement planning now? I have plenty of time!” That is what many younger adults ask themselves as they struggle to manage their current, day-to-day money management tasks. The answer is simple: If you don’t start planning now, your options become fewer and fewer and your choices become harder and harder. As we will learn in this presentation, more and more of the burden of providing an income in retirement is being placed squarely upon the shoulder of employees. It is not all bad news. In fact, the opportunities are there to create a substantial retirement income, especially if we start early and invest wisely. The pitfalls are also great, especially we fail to start early or invest poorly or as is often with case with too many individuals, do both. The good news if you do start early, you will be surprised at how little you need to sock away to have a substantial nest egg for your retirement. Start planning now! Start saving now!

Over the next 20 years, millions of Baby Boomers will be facing retirement and most all are simply not prepared for it. We discuss the implications of the coming tsunami of Baby Boomer retirees and what potential remedies we have to deal with it. Relax. It’s not as bad as the media make it out to be. We have successfully dealt with serious problems in the past and we will successfully deal with this one.

No one enjoys thinking about a time when they will not be around anymore. Nevertheless, not dealing with estate planning can make your demise much more painful for your heirs. In this presentation, we discuss the various estate documents used in the estate planning process, including wills and trusts, as well as the important role of the competent legal professionals. We end with some advice about how to deal with a windfall. Thank you all for a great semester! We wish you the best of luck and success and hope to hear from you in the future about how this class helped you accomplish your financial goals in life.

It is said that real estate has created more millionaires in the United States than any other investment class. While this may be true -- it certainly seems plausible -- real estate is not without its risks. Ask those who bought that flipper condo in 2006. They lost their entire investment (their down payment) and still owe tens of thousands of dollars more than its current market value. In this presentation, we take a close look at real estate as an investment. We also take a quick look as some other investment alternatives and find that although these may be rewarding vehicles for some individuals, the vast majority of us are better off avoiding them altogether. Lastly, we cover Starting a Business, the Ultimate Investment! (It ain't fer everyone!)

Mutual funds truly are the “Investments for the Masses.” With as little as $25 to $50 per month, investors get professional money management and diversification, two great advantages. What are the disadvantages? Well, for starters, mutual fund investors get charged fees that the investors rarely understand. We briefly discuss the annual operating expenses and the various fee classes.

With over 11,000 mutual funds available, how and where do we start searching for the right one for us? It is not an easy task. We start by looking at just a sampling of the major categories of mutual funds, from the riskiest to the most conservative. In the next presentation, we will then focus on some of the major mutual fund families and look closely at a sample mutual fund.

In our final presentation, we then turn our attention to just a few of the major mutual fund families and their offerings and take a look at a sample mutual fund with a long track record. Lastly, we revisit dollar cost averaging and find that if we choose wisely, invest consistently, and remain patient, with a long time horizon, we might just be very wealthy one day. But remember: There are no guarantees!

Stocks are exciting! Stocks are sexy! Stocks are risky! Welcome to our first presentation on stock investing. What are stocks? Why do corporations issue stock? Why do investors purchase stocks? We learn these and other fundamentals of stocks and stock investing, how investors purchase stocks, and the largest categories of stock types. Let's get started!

How can we say that stock investments have returned 8% to 10% over the long term? In the session, we discuss the various stock indexes that are used to measure the success (or lack thereof) of stock investing. We also learn how to compute some of the most popular and fundamental numerical measures of stock investments, including earnings per share, dividend yield, book value, market capitalization, and price-to-earnings ratio. We end by examining these numerical measures of some very well-known corporations.

There are three main theories of stock investing, fundamental analysis, technical analysis, and the efficient market theory. We examine all three and some of the various stock investing strategies as well as the concepts of asset allocation and rebalancing, and stock investing in retirement. We end this presentation with a discussion of the various sources of stock investments information.

When attempting to learn how to do something, does it not make sense to study those who are the experts at doing it? In this presentation, we introduce some of the "All Stars of Investing" and listen to what advice they can give us. We also take a look at a collection of famous myths and stupid sayings and try to learn from them what not to do! Lastly, we examine how can get started in a career in the stock market.

It is time for the best part of the class, investments! In this presentation, we introduce some fundamental concepts of investing and how to get started investing. Our second presentation will then present an overview of the various major types of investments. Which investment or investments are the best for you? That is a difficult question to answer. In the next several presentations, we will learn the advantages and strengths and the disadvantages and weaknesses of the major investment types and you can decide for yourself. As famed investor Warren Buffet is fond of saying, “Investing is simple, but it ain’t easy!”

What are the major investment asset classes? What returns can we reasonably expect from each over the long term? What risks are involved with each investment type? This presentation will answer these preliminary questions about the major investment types from a general perspective. We will then look at each in detail over the next several chapters.

Bonds are boring. Yep, there is no other way to get around that fact. But in the world of investing, boring can have many advantages. In general, bonds are reliable, consistent investments that during normal times, exhibit far less volatility than stocks and other riskier investments. (Volatility is the financial world's fancy way of saying, "You can lose a lot of money!") In this presentation, we delve into the world of bonds and you will learn why the famous industrialist Andrew Carnegie said, "Gentlemen prefer bonds."

No insurance can be more necessary and, at the same time, more evil than life insurance. For many decades, consumers groups and state insurance commissioners have advised consumers that they will almost always be better off choosing low-cost term life policies instead of high-cost whole life policies. Not surprisingly, for the same number of decades, the life insurance industry has steered people away from low-cost term life policies and toward costly whole life policies. Every few years, they change the name of whole life policies to confuse the public. The new spin is "permanent" life insurance. Don't be fooled. Get the facts in this presentation and learn why you are almost always better off if you "Buy Term and Invest the Difference."

In the United States of America, health care is a thorny issue that divides our nation. Our cost per person is approximately twice that of all other industrialized countries. Any attempts to try to contain the costs or change the system are met with fierce resistance. The problem is not going away so let us hope that we can begin to have a responsible dialog and work together to find solutions. (Ha, ha, ha, ha, ha, ha, ha, ha! Sorry, I can't help being cynical. Oh, by the way, please remember: Don't give sick!)

"Insurance: The Necessary Evil" is something you normally only hear if you work in the insurance industry. However, no description could be more appropriate. Insurance is both absolutely necessary and potentially very detrimental to our financial well-being. In the next three chapters, we will learn the reasons we need – and don't need – insurance and why we must always keep our backs to the wall when we deal with the insurance industry. This first presentation discusses homeowners and renters insurance.

What You Don't Know About Your Automobile Insurance Can Hurt You! Your insurance agent tells you that you have "full coverage" automobile insurance and you now believe that no matter what happens, you will be covered by your insurance company. This is a dangerous myth! No insurance offers unlimited coverage. In this presentation, you will learn the limits to your bodily injury and property liability coverage, the most important form of automobile insurance. We will also discuss some other important aspects of automobile insurance including uninsured and underinsured motorist provisions, and collision and comprehensive coverage.

If you are like most Americans, the largest expense item on your cash flow statement will be your rent or mortgage payment. We discuss the advantages and disadvantages of renting versus owning. The choice is not always clear, no matter what the real estate industry says.

Buying a home is a grueling ordeal! There is no other way to explain it. Yet, every year, hundreds of thousands of first-term home buyers enter the market and with a long-term perspective, they are usually well rewarded with both a home and a very good long-term investment. We investigate what you will encounter as you begin this journey. We will also discuss the effects of the 2000's housing bubble and disastrous aftermath. We end our discussion with learning how to calculate the principal and interest payments for fixed-rate mortgages and see that mortgage interest rates are the lowest they have been in decades.

Do you believe that you would be happy if you were rich? We explore this idea as well as discuss just a few of the Culture of Consumption scandals that permeate our country. Along the way, you may learn some tricks about how to save money, sometimes serious amounts of money. It all comes down to the fundamental question: Do we own our possessions or do our possessions o

The #1 Culture of Consumption Scandal in our country is our love affair with cars. After housing, your car is likely to be the item you spend most of your hard-earned dollars on. But do you know exactly how much your car is costing you? And you do understand your relationship with your motor vehicle? Your car is costing you more than money.

What is credit? What is consumer credit? What are the benefits and detriments of using credit. Forgive me for taking on the role of Southern Baptist Fire-'n'-Brimstone Backwoods Preacher but I literally see red when we get to this chapter. There is an entire industry whose main aim is to stick their needle into your arm and suck your blood ... for the rest of your life! Learn how to protect yourself from their wily schemes and strategies. We also learn a method to safely build your credit score for those who have no credit history or have an unfavorable bad credit history.

What is a credit score and how is your credit score calculated? How can you help protect yourself from identity theft? What are the warning signs of debt problems and what is bankruptcy and when is it an appropriate course of action? We discuss these and other topics and conclude with an example of a typical consumer debt problem and show exactly how long and how much it will take to erase the debt.

Do you reconcile your checking account with your bank or credit union? If you are like the majority of Americans, you do not. In this chapter, we will learn how to reconcile your account along the other issues related to banking. We will discuss banks versus credit unions, deposit versus non-deposit institutions, savings and checking accounts, as well as a few other unusual ways that people manage their money.

"In this world, nothing is certain but death and taxes." No one likes to pay taxes. While we can't help you avoid taxes altogether, there are various strategies for helping you pay fewer dollars in taxes. We start our discussion with the various types of taxes and we also learn how to calculate the effect of taxes on purchases. In other words, how much does it really cost you after you take into account the effect of taxes?

In this presentation, we build a typical homeowner's tax return. We cover the Form 1040, Schedule 1, and Schedule A, the homeowner's friend. We learn how to calculate gross income, adjusted gross income, taxable income, and income tax due. We see the effect of adjustments to income, the standard deduction or itemized deductions, and tax credits. What we hope you will see is that while the typical homeowner's tax return is not trivial, it is not as difficult to produce as you might have been led to believe. Let's get started!

We finish our chapter on taxes with discussions of tax resources, tax audits, and effective strategies for reducing your taxes. As we will see, one of the most effective methods for reducing taxes for upper-middle class taxpayers is to own a home. For those at the lower end of the home buying public, the tax savings from owning a home are not as great as the real estate professionals often make them out to be. For many at the lower end of the housing market, especially married couples, the Republican 2017 tax bill eliminated any tax savings from owning a home.

For most all individuals, the two most important financial planning documents are the cash flow statement (a.k.a. income statement, income and expense statement, budget) and the net worth statement (a.k.a. balance sheet). In the chapter, we learn how to create these two documents. Keep them updated! Keep them current! They should serve you well for years to come.