Personal Financial Planning [14 ed.] 1305636619, 9781305636613

Table of contents :
Cover
Brief Contents
Contents
Preface
About the Authors
Part 1: Foundations of Financial Planning
Ch 1: Understanding the Financial Planning Process
Learning Goals
1-1: The Rewards of Sound Financial Planning
1-2: The Personal Financial Planning Process
1-3: From Goals to Plans: A Lifetime of Planning
1-4: The Planning Environment
1-5: What Determines Your Personal Income?
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 2: Using Financial Statements and Budgets
Learning Goals
2-1: Mapping Out Your Financial Future
2-2: The Balance Sheet: How Much are You Worth Today?
2-3: The Income and Expense Statement: What We Earn and Where It Goes
2-4: Using Your Personal Financial Statements
2-5: Cash in and Cash Out: Preparing and Using Budgets
2-6: The Time Value of Money: Putting a Dollar Value on Financial Goals
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationship Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 3: Preparing Your Taxes
Learning Goals
3-1: Understanding Federal Income Tax Principles
3-2: It's Taxable Income That Matters
3-3: Calculating and Filing Your Taxes
3-4: Other Filing Considerations
3-5: Effective Tax Planning
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Part 2: Managing Basic Assets
Ch 4: Managing Your Cash and Savings
Learning Goals
4-1: The Role of Cash Management in Personal Financial Planning
4-2: Today's Financial Services Marketplace
4-3: A Full Menu of Cash Management Products
4-4: Maintaining a Checking Account
4-5: Establishing a Savings Program
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 5: Making Automobile and Housing Decisions
Learning Goals
5-1: Buying an Automobile
5-2: Leasing a Car
5-3: Meeting Housing Needs: Buy or Rent?
5-4: How Much Housing Can You Afford?
5-5: The Home-Buying Process
5-6: Financing the Transaction
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Part 3: Managing Credit
Ch 6: Using Credit
Learning Goals
6-1: The Basic Concepts of Credit
6-2: Credit Cards and Other Types of Open Account Credit
6-3: Obtaining and Managing Open Forms of Credit
6-4: Using Credit Wisely
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 7: Using Consumer Loans
Learning Goals
7-1: Basic Features of Consumer Loans
7-2: Managing Your Credit
7-3: Single-Payment Loans
7-4: Installment Loans
Summary
Key Terms
Answers Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Part 4: Managing Insurance Needs
Ch 8: Insuring Your Life
Learning Goals
8-1: Basic Insurance Concepts
8-2: Why Buy Life Insurance?
8-3: How Much Life Insurance is Right for You?
8-4: What Kind of Policy is Right for You?
8-5: Buying Life Insurance
8-6: Key Features of Life Insurance Policies
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 9: Insuring Your Health
Learning Goals
9-1: The Importance of Health Insurance Coverage
9-2: Health Insurance Plans
9-3: Health Insurance Decisions
9-4: Medical Expense Coverage and Policy Provisions
9-5: Long-Term-Care Insurance
9-6: Disability Income Insurance
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 10: Protecting Your Property
Learning Goals
10-1: Basic Principles of Property Insurance
10-2: Homeowner's Insurance
10-3: Automobile Insurance
10-4: Other Property and Liability Insurance
10-5: Buying Insurance and Settling Claims
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Part 5: Managing Investments
Ch 11: Investment Planning
Learning Goals
11-1: The Objectives and Rewards of Investing
11-2: Securities Markets
11-3: Making Transactions in the Securities Markets
11-4: Becoming an Informed Investor
11-5: Online Investing
11-6: Managing Your Investment Holdings
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 12: Investing in Stocks and Bonds
Learning Goals
12-1: The Risks and Rewards of Investing
12-2: Investing in Common Stock
12-3: Investing in Bonds
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 13: Investing in Mutual Funds, ETFs, and Real Estate
Learning Goals
13-1: Mutual Funds and Exchange-Traded Funds: Some Basics
13-2: Types of Funds and Fund Services
13-3: Making Mutual Fund and ETF Investments
13-4: Investing in Real Estate
Summary
Key Terms
Answers to Test Yourself
Key Financial Relationships
Key Financial Relationships Problem Set
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Part 6: Retirement and Estate Planning
Ch 14: Planning for Retirement
Learning Goals
14-1: An Overview of Retirement Planning
14-2: Social Security
14-3: Pension Plans and Retirement Programs
14-4: Annuities
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Ch 15: Preserving Your Estate
Learning Goals
15-1: Principles of Estate Planning
15-2: Thy Will Be Done . . .
15-3: Trusts
15-4: Federal Unified Transfer Taxes
15-5: Calculating Estate Taxes
15-6: Estate Planning Techniques
Summary
Key Terms
Answers to Test Yourself
Financial Planning Exercises
Applying Personal Finance
Critical Thinking Cases
Appendix A: Table of Future Value Factors
Appendix B: Table of Future Value Annuity Factors
Appendix C: Table of Present Value Factors
Appendix D: Table of Present Value Annuity Factors
Appendix E: Using a Financial Calculator
Index