1 / 12

Unit 1: The Financial Planning Process

Unit 1: The Financial Planning Process. I can…. Learning Objectives I can explain why personal financial planning is so important. I can describe the five basic steps of personal financial planning. I can set short, intermediate, and long term goals.

ogden
Download Presentation

Unit 1: The Financial Planning Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 1: The Financial Planning Process

  2. I can… • Learning Objectives • I can explain why personal financial planning is so important. • I can describe the five basic steps of personal financial planning. • I can set short, intermediate, and long term goals. • I can explain how career management and education can determine income level. • I can calculate monthly income using hourly, overtime, and commission based rates. • I can create a resume. • I can create a cover letter. • I can explain appropriate interview attire for a male and female. • I can list what to do before, during, and after an interview.

  3. Financial planning allows you to accomplish the following: • Manage the unplanned • Plan to deal with the unexpected • Allows you to bounce back from a hard knock instead of going down for the count • Accumulate wealth for special expenses • Maps out strategies for travel, a big wedding, college for you or your children, or buying a home • Save for retirement • You do not want to be penniless at 65 • Planning will help you live a life of retirement ease.

  4. Financial planning allows you to accomplish the following (cont.): • “Cover your assets” • Protect what you’ve got • Invest intelligently • Providing basic principles of investment for smart investing • Minimize your payments to Uncle Sam: • Helps you legally reduce the amount of tax you have to pay

  5. The five basic steps to personal financial planning… • Step 1: Evaluate Your Financial Health • Step 2: Define Your Financial Goals • Step 3: Develop A Plan of Action • Flexibility • Liquidity • Protection • Minimization of Taxes • Step 4: Implement Your Plan • Step 5: Review Your Progress, Reevaluate, and Revise Your Plan

  6. Establishing Goals • Short-term- can be accomplished in a one year period • Example: new shoes, television, taking a vacation • Intermediate term- may take from 1 year to 10 years to accomplish • Saving for college, a new car, a home, a wedding • Long term- takes more than 10 years to accumulate money • A second home, retirement

  7. Financial Life Cycle • Stage 1: Early Years- time for wealth accumulation (through age 54) • Stage 2: Approaching Retirement- the Golden Years (ages 55-64) • Stage 3: The Retirement Years (age 65 and older)

  8. Estate planning- planning for your eventual death and the passage of your wealth to your heirs • Inflation- an economic condition in which rising prices reduce the purchasing power of money

  9. What are your financial goals?

  10. Bellringer • Write the question and answer on a scratch piece of paper. We will turn these in later. • How do YOU feel career choices impact your financial health? Explain using 2 or more sentences.

  11. Research Shows…

  12. Research Shows…

More Related