个人理财英文版第一章.ppt

Chapter 1Personal FinancialPlanning in ActionCopyright 2010 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw-Hill/IrwinPersonal Financial Planning Objectives1.Identify social and economic influences on personal financial goals and decisions2.Develop personal financial goals3.Assess personal and financial opportunity costs associated with financial decisions4.Implement a plan for these decisions1-2Financial PlanningProcess of managing your money to achieve personal economic satisfactionFinancial Plan:Formalized report Summarizes current financial situationAnalyzes financial needsRecommends future financial activities1-3Advantages of Financial PlanningIncreased effectiveness in obtaining,using,and protecting financial resourcesIncreased control of your financial affairsImproved personal relationshipsSense of freedom from financial worries1-4Life situation and personal valuesFinancial planning in our economyDomestic economic influencesGlobal InfluencesInflationInterest ratesObjective 1Identify Social and Economic Influences on Personal Financial Goals and Decisions1-5Life Situation and Personal ValuesAdult life cycleLife Situation Factors:Marital status,household size,employmentExhibit 1-1 (page 5)Major events:Graduation,marriage,divorceBirth or adoption of childCareer or health changesValues:The ideas and principles you consider correct,desirable,and important1-6Financial Planning in Our EconomyDomestic InfluencesEconomys influence on financial planningBusiness,labor&governmentThe Federal Reserve“.Sets the nations monetary policy to promote the objectives of maximum employment,stable prices and moderate long-term interest rates.”1-7Financial Planning in Our EconomyGlobal FactorsU.S economy affected by foreign investors and competition from foreign companiesLevel of imports/exports affects available supply of dollarsLevel of foreign investment affects domestic money supplyMoney supply affects consumer interest rates1-8Financial Planning in Our Economy InflationInflation=in the general level of pricesReduces buying power of the dollarMost harmful to those on fixed incomesInflation rates vary“Hidden inflation”CPI=a measure of inflation1-9Financial Planning in Our EconomyInterest RatesInterest Rate=the cost of moneyAffected by supply and demand Risk premium:Length of time funds in useExpected inflationUncertaintyMajor impact on financial planning1-108 Basic Financial Planning Activities ObtainingChapter 1 Planning Chapters 2,3 SavingChapter 4 BorrowingChapter 5 SpendingChapter 6,7 Managing RiskChapter 8-10 InvestingChapter 11-13 Retirement/Estate PlanningChapter 141-11Time Frames for Achieving Financial Goals:Short-term goals.w/in 1 yearIntermediate goals .2-5 yearsLong-term goals .5 yearsFinancial Needs Goals:Consumable-product goals.Food,clothingDurable-product goals .Car,appliancesIntangible-purchase goals .Education,healthObjective 2Develop Personal Financial Goals1-12Goal-Setting GuidelinesEffective Goals should be:RealisticStated in specific,measurable termsBased on a time frameAction-oriented1-13Objective 3Assess Personal and Financial Opportunity Costs of Financial DecisionsOpportunity cost=what you give up making a choiceThe trade-off of a decisionNot always measurable in dollars;may be timeConsider lost opportunities resulting from your decisions1-14Opportunity Costs and Financial Trade-OffsPersonalOpportunity Costs(time,effort,health)FinancialOpportunity Costs(Interest,liquidity,safety)FinancialAcquisitions(car,home,college education,investments,insurance,retirement fund)1-15Time Value of MoneyIncrease in an amount of money as a result of interest earnedSaving today=more money tomorrowSpending today=lost interestSaving and spending decisions involve considering the trade-offs Current needs can make spending worthwhile1-16Calculating interest earned:Principal=amount of savingsAnnual interest rateLength of time money on deposit(in years)Simple interest:Time Value of MoneyInterest CalculationsAmt in Amt in SvgsSvgsXAnnual Interest RateTime PeriodInterestX=1-17$500 on deposit at 6%annual interest for 6 months:Principal=$500Interest rate=6%Time period=(6/12 months)Time Value of MoneyInterest Calculation Example$500X6%1/2$15X=1-18Future Value The increased value of money from interest earned Amount to which current savings will increase Total amount available in the future“Compounding”1-19Future ValueExample Future ValueOriginal Amount in SavingsInterest Earned=+$100 deposited for 1 year at 6%per yearFuture Value=$100+($100 X.06 X 1)Future Value=$100+$6=$1061-20Future Value TablesExhibit 1-3A=FV of a Single AmountMultiply Table Factor by amount depositedAll Future Value factors 1.0Example:$650 invested at 8%for 10 yearsFactor=2.159FV=$650 X 2.159=$1,403.351-21Future ValueSeries of DepositsExhibit 1-3B“Annuity”=series of equal deposits at equal intervals earning a constant rateExample:Deposit$50 per year at 7%for 6 yearsExhibit 1-3B factor=7.153Future Value=$50 x 7.153=$357.651-22Present ValueThe current value of a future amount based on a certain interest rate and time periodThe current value of an amount desired in the futureHow much to deposit now to obtain a desired total in the future“Discounting”1-23Present Value TablesExhibit 1-3C=PV of a single amountMultiply Table Factor by amount depositedAll Future Value factors 1.0Example:You want$1,000 five years from nowYou can earn 5%on your moneyPresent Value=$1,000 X 0.784=$7841-24Present Valueof a Series of DepositsExhibit 1-3DDetermine how much you need to deposit now in order to withdraw a specific amount for a desired number of yearsExample:You want to withdraw$400/year for 9 yearsYour money is earning 8%per yearDeposit=$400 X 6.247=$2,498.801-25The 6-Step Financial Planning Process1-261.Determine current financial situation2.Develop financial goals3.Identify alternative courses of actionContinue same course of actionExpand current situationChange current situationTake a new course of actionObjective 4Implement a Plan for Making Personal Financial and Career Decisions1-274.Evaluate alternativesConsequences of choicesEvaluate risksFinancial Planning information sources5.Create and implement financial action plan6.Review and revise planObjective 4Implement a Plan for Making Personal Financial and Career Decisions1-28 Financial Planning in Action1-29Career Choice and Financial Planning1.The life work one selects=key to financial well being and personal satisfaction2.Career choices have risks and opportunity costs3.Career choices require periodic re-evaluation of trade-offs related to personal,social and economic factors4.Changing personal and social factors require continuous assessment of your work situation1-30感谢亲观看此幻灯片，此课件部分内容来源于网络，感谢亲观看此幻灯片，此课件部分内容来源于网络，如有侵权请及时联系我们删除，谢谢配合！如有侵权请及时联系我们删除，谢谢配合！