FIN 100 Personal Financial Planning

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FIN 100 Personal Financial Planning

• How to make good financial decisions and live
  comfortably

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Stress.
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Stress
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Why are you here?

• A Need to solve a current financial problem
• B Need to prepare for my financial future
• C Sounded like an interesting elective
• D Advisor signed me up
• E Family/friend recommended it

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What is financial success?

• Being financially comfortable, says Jonathan
  Clements of the WSJ.
• What does comfortable mean to you?
• Whats your definition?

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Doing It Wrong .
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Raise 5,000 Now or Die!

• Where do you get the funds?

• What of respondents indicated they did NOT have
• enough ready money to raise 5,000?
• 68
• 52
• 47
• 33
• 29

Bankrate.com, 5/13/99
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Raise 5,000 Now or Die!

• Where do you get the funds?
• Borrow (equity, family, friends) 45
• Withdraw from account 32
• Credit cards
  9
• Dont know
  8
• Not possible
  6

Plan for Emergencies!
Bankrate.com, 5/13/99
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Golden Years Spent in the Red

• Average credit card debt for 65-69 year olds was
  nearly 6K, 3x as much as 10 years ago.
• Paying minimum of 3 (180) monthly at 18
  requires nearly 4 years to pay off IF no new
  debt incurred.

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What blocks our way to success?

• Vague goals
• No planning
• Poor implementation
• No family agreement
• Its hard!

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Doing It Right
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Curtis Hensly 30 year old bachelor

• Started earning mowing lawns as kid
• Earned a bachelors and masters degree in
  forestry management
• Worked summers to create 25K nestegg when he
  graduated

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Doing it Right

• Lives frugally on 55K salary NO DEBT
• Saves 16 of paycheck into 401K plan
• Employer matches 6
• Has 200K in nestegg!
• Wants to retire by 55

WSJ, 7/7/04
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Lets Get Started Toward Financial Success