Day 6 of 6
Trusts and Distributions
Wills go through probate court (take 5% of $$) unless under $140,000. The court makes sure your wishes are distributed. Probate court takes 5% of the value of the house even though you still owe for it.
Marriage
• Common Law States - Oregon is one of them and once you are married ½ of all is owned by each.
• Community Property States (11 including CA, WA) – the assets that you have before you get married are solely yours and it’s 50/50 after being married.
Divorce is a D you know!
Prenuptial Agreement – A couple goes to an attorney to assure that the assets one has before you get married stay that way. It is legal in every state.
Trust
• Is a Will that can last for the “life in being + 21 years” (your child + 21 yrs)
• Doesn’t have to go through probate court
• Created by a attorney $500 - $1,000
• Irrevocable – cannot change
Provisions of a Trust
Most popular – 25% distribution amounts that Dan wrote up for his clients:
• 25% at age 35
• 25% at age 40
• 25% at age 45
• 25% at age 50
Most popular college provision amounts that Dan wrote up for his clients:
• Pay for a 4 year bachelors degree, pays 100%
• Grades 4.0 get $15,000 payout
• Grades 3.0 get $7,500 payout
Probate Court – open for public record (McCartney, Ford examples)
Guardian for children need to named in Trust
• Per Capita – brothers/family benefit from inheritance
• Per Stirpies – child to benefit from trust
Book that Dan mentioned throughout the course . . . Rickenbacker by W. David Lewis (back of book has info, Dan edited)
Day 5 - May 30, 2007
Taxes
• Gross Income - all of your income (revenue), all of the money you make
• Adjusted Gross Income: all revenue minus business expenses
• Taxable Income: is all revenue minus business expenses minus health care and medical (if greater than 2%) minus personal exemptions
Recommendation: Set aside 25% of revenue for taxes if you own a business
Capital Gains – are taxes when we sell something
Long term investments - 12 months or longer, taxed at maximum of 15%
Short term investments - less than 12 months, taxed as ordinary income (up to 33%)
• On Stocks – tax deferred until you sell it
• On Mutual Funds – tax deferred until you sell it
• On Real Estate – tax deferred until you sell it, a house sold with a $500,000 gain is tax free if you live in it for more than 2 years
Tax Deductibles
• IRAs – pension plans
• Tax Free Municipal bonds
• Tax Deferred Annuities, offered by insurance companies (OJ Simpson put his money into these, the rest goes to the victims families)
• Tax Credits - invest in low income housing (dollar for dollar offset for taxes owed)
• Writes Offs – uniforms, vehicles used for business, tools, etc.
Insurance
Personal Lines – insuring a person
Life Insurance – provides a lump sum of money for your family if you die
Formula to calculate how much life insurance to have is: ½ income for 10 years
Example: ½ your income x 10 or $20,000 x 10 = $200,000
Types
1. Term – a lump sum when you die
2. Whole Life – not recommended by Dan, agents make the most money from this type
• 10 year level premium term
• 15 year level premium term
• 20 year level premium term
3. Universal Life – invests in mutual funds
Health Insurance
• Health Maintenance Organization (HMO) - you pay co-pays, insurance pays balance, large businesses offer HMOs, most popular
• Personal Provider PPO - you pay higher co-pays, have more choices, co-insurance can apply
• Individual Major Medical
o Deductible could be $500 or $1,000 or $5,000
o Co-Insurance is 80/20 $5,000 – You pay the first $5,000 in a calendar year and 20% of every medical amount after that
Auto Insurance
PAP – personal auto policy, every state requires it
Suggested coverage in your policy:
• $100,000 per person/$300,000 per accident
• $100,000 property damage (anything in excess)
• Medical limit is capped at $5,000 to $15,000 – everyone is expected to have their own medical insurance
Is there a way for us to know what the premium should be before walking into the insurance office? Yes, research on the Internet, http://www.insurance.oregon.gov/publications.html
Homeowners Policy
HO1 – renter’s coverage
HO2 – small list covered: fire, theft, flood, wind
HO3 – everything except flooding, earthquakes
HO5 – everything and replacement costs (inflation guard – adjusts to new value on your home)
Dan says the best is Liberty Northwest Insurance for both Homeowners & Auto Insurance
How to shop for insurance premiums
250 Deductible
500 Deductible – recommends this, savings pays off after 2 ½ years
Wills & Trusts
Intestate – died without a will and will follow the state’s requirements
Example of Husband & Wife, Husband dies
Wife – how much do I collect?
• 0 children – shares 50/50 with parents
• 1 child – shares 50/50 (child gets ½ of $$ and debt at age 18)
• 2 or more – wife gets 1/3rd and children get 2/3rds divided amongst all children
To Create a Will
In the event of my death . . .
Two witnesses sign and it is legal
Day 4 - May 23, 2007
Topic for Day 4 of 6: Asset Allocation, Retirement, and Taxes
Airplane Story - Dan did not get his airplane because of 17 "squawks" which are defects. The owner (who had Dan convinced that he is the most honest person around) didn't disclose information about the airplane - which is lying.
Objectives of ASSET ALLOCATION
Aggressive Growth = 100% stocks, ages 18-35
Growth = 80% stocks & 20% bonds/real estate, ages 18-60
Growth & Income "Balance" = 60% stocks & 40% bonds, ages 55-60
Example of Asset Allocation for Grandparents age 65+
Living on Social Security, Conservative, Not Working
Rule to Investing is 60/40, 60% Fixed & 40% Mutual Funds
Fixed: CD's, Corporate Bonds, Real Estate, Reits, Emerging Market Debts
Mutual Funds: Large Cap, Foreign, MidCap, Bond Funds
Example of Asset Allocation for Parents 50+
Living on Wages earning
Rule to Investing is 80/20, 80% Stocks, 20% Fixed Income
80% Stocks: 30% Foreign, 25% Mid Cap, 20% Large Cap, 15% Small Cap, 10% Reit (Real Estate Investment Trusts)
20% Fixed Income: Reits, High Yield, Individual Bonds, Emerging Market Debt
RETIREMENT
Government Benefits:
Civil Service (retirement from working for the government: postal, president)
Social Security: 40 Quarters earning $50 or more (10 years) required to earn a benefit
Employer Plans:
Defined Benefit Pension Plan - predetermined when you are hired - example is $25,000 after 25 years of service
Profit Sharing Plan - % of your salary, example is 10% of what company invests in
401K Plans - Employer matches up to 5% of your salary
403B Non-Profit Organizations (Red Cross)
Individual Plans "Pension"
* SEP IRA - Simplified Employee Pension for entrepreneurs (dry wallers, brick layer)
* IRA - if you work for someone else but they don't have a retirement plan for you, this is a place you could create a retirement account
* Roth IRA - tax deferred until retirement, then it's not taxed when taken out at age 65, Dan favors this one
* Simple IRA - for small number of employees like three
Pensions
How do I know when I can retire? When the interest earned will run your budget.
$42,750.17 budget - $17,000 Social Security benefits - $12,000 Military Pension =
TAXES
Reduce taxes by: Municipal bonds, tax deductions, tax free, tax deferred (annuity), tax credits (investing in low income housing), write off's (work related equipment)
Is our tax system fair - the government struggles with making it equitable
Do we ever want to invest in something just because it has a tax benefit? NO
Should we try to offset Capital Gains (short & long term) and Capital Losses at the end of the tax year? NO (but get rid of "losers" not earning money)
Should we ever be dishonest when it comes to taxes? NO
Should we pay more than our fair share? NO
Married filing jointly - 0-$14,300 10%
$14,400 - $58,100 - 15%
$58,100 - 117,250 25%
We spend more money paying H&R block than we do paying for our military.
Dan likes a "Flat Tax" - employers take out 13%
Gross Income: all revenue
Adjusted Gross Income: all revenue - business expenses
Taxable Income: all revenue - business expenses - health care - medical - personal exemptions
All of this is on page one & two on your tax forms
Should Oregon have a State Sales Tax? Oregonians know that it could be raised, just as it is/was in other states.
Airplane Story - Dan did not get his airplane because of 17 "squawks" which are defects. The owner (who had Dan convinced that he is the most honest person around) didn't disclose information about the airplane - which is lying.
Objectives of ASSET ALLOCATION
Aggressive Growth = 100% stocks, ages 18-35
Growth = 80% stocks & 20% bonds/real estate, ages 18-60
Growth & Income "Balance" = 60% stocks & 40% bonds, ages 55-60
Example of Asset Allocation for Grandparents age 65+
Living on Social Security, Conservative, Not Working
Rule to Investing is 60/40, 60% Fixed & 40% Mutual Funds
Fixed: CD's, Corporate Bonds, Real Estate, Reits, Emerging Market Debts
Mutual Funds: Large Cap, Foreign, MidCap, Bond Funds
Example of Asset Allocation for Parents 50+
Living on Wages earning
Rule to Investing is 80/20, 80% Stocks, 20% Fixed Income
80% Stocks: 30% Foreign, 25% Mid Cap, 20% Large Cap, 15% Small Cap, 10% Reit (Real Estate Investment Trusts)
20% Fixed Income: Reits, High Yield, Individual Bonds, Emerging Market Debt
RETIREMENT
Government Benefits:
Civil Service (retirement from working for the government: postal, president)
Social Security: 40 Quarters earning $50 or more (10 years) required to earn a benefit
Employer Plans:
Defined Benefit Pension Plan - predetermined when you are hired - example is $25,000 after 25 years of service
Profit Sharing Plan - % of your salary, example is 10% of what company invests in
401K Plans - Employer matches up to 5% of your salary
403B Non-Profit Organizations (Red Cross)
Individual Plans "Pension"
* SEP IRA - Simplified Employee Pension for entrepreneurs (dry wallers, brick layer)
* IRA - if you work for someone else but they don't have a retirement plan for you, this is a place you could create a retirement account
* Roth IRA - tax deferred until retirement, then it's not taxed when taken out at age 65, Dan favors this one
* Simple IRA - for small number of employees like three
Pensions
How do I know when I can retire? When the interest earned will run your budget.
$42,750.17 budget - $17,000 Social Security benefits - $12,000 Military Pension =
TAXES
Reduce taxes by: Municipal bonds, tax deductions, tax free, tax deferred (annuity), tax credits (investing in low income housing), write off's (work related equipment)
Is our tax system fair - the government struggles with making it equitable
Do we ever want to invest in something just because it has a tax benefit? NO
Should we try to offset Capital Gains (short & long term) and Capital Losses at the end of the tax year? NO (but get rid of "losers" not earning money)
Should we ever be dishonest when it comes to taxes? NO
Should we pay more than our fair share? NO
Married filing jointly - 0-$14,300 10%
$14,400 - $58,100 - 15%
$58,100 - 117,250 25%
We spend more money paying H&R block than we do paying for our military.
Dan likes a "Flat Tax" - employers take out 13%
Gross Income: all revenue
Adjusted Gross Income: all revenue - business expenses
Taxable Income: all revenue - business expenses - health care - medical - personal exemptions
All of this is on page one & two on your tax forms
Should Oregon have a State Sales Tax? Oregonians know that it could be raised, just as it is/was in other states.
Day 3 - Investments - May 16, 2007
Investments - Mutual Funds
1. How do we find the good ones?
Skim the top 5% performing funds – this is what you want to own
Add them to a “watch list”
2. Morningstar.com
• Screen
• Fund Category
• 3 month rank within category
• 12 month rank within category
• 3 year rank within category
Morningstar example $10 per month – in Dan’s acct
Domestic stock – in US
No sector – real estate, etc.
Best performance for 12 months
Best performance for 3 years
46 choices
Schneider Value is Dan’s favorite Mutual Fund but it has a $20,000 minimum investment
3. Create a Watch List
• Create a “Watch list” for stocks and don’t invest your money into anything that is not on your watch list (top 5% stocks)
• Dan tracks his investments in Microsoft Money 2000 – handout was a “Portfolio Report”
• 4 week return 5.5% Artisan Mid Cap Value (Dan believes that the trend happens in 4 weeks – this is what to invest in)
How much money do we put into our Investments?
The amount of money is the most critical decision in investing
(ex. Put your $$ on the fastest horse in the race to get the most money out of your bet)
Mutual Fund % Divisions for Investments and Mutual Fund Names
30% - Schneider
25% - Fairhome
20% - Oakmark Global
15% - Kinetic Small
10% - T Rowe Price – global
(75% of money is on the fasting and best growing fund - fastest “horse”)
How do I become a millionaire another way? With the 50/40 RULE
Invest $50,000 by the time you are 40 yrs old and don’t touch it for 25 years
Save $100 month earning 8% interest starting at age 25
Look below to see what you can get with $50,000 invested at 14.4% interest at age 40
Age 40 = $50,000
Age 45 = $100,000
Age 50 = $200,000
Age 55 = $400,000
Age 60 = $800,000
Age 65 = $1,600,000
StockCharts.com – technical analysis for investing money, Monday Indicator, 20 graphs that tell you the state of the market, the tab “ChartSchool” to learn
Stock Short Definition: When someone shorts a stock [sometimes called "selling short"], they borrow shares of a company from an investor and sell those borrowed shares at the current market price. The hope is that the stock price will fall so the short seller can repurchase the stock at a lower price and pay back the person they borrowed from. Example: You decide to short 10 shares of a stock that costs $50. You enter a short order with your broker, who borrows the stock from another one of his or her clients. Once you have the borrowed shares, you sell them. Since you didn't own those shares, you are going to have to pay the owner back in a short amount of time. The stock price falls to $40, so you purchase the shares. This costs you $400 [10 shares x $40 per share] and give them back to the original owner. Since you sold their shares for $50 earlier, you made $500 [10 shares you borrowed x $50 per share]. Your profit is the difference between the two, in this case, $100 [because $500 - $400 = $100].
Futures & Options – Example was “Ranching Family”
500 cattle going to market in September, it is May now
Is there a way to lock in $1.90 “option” to sell in Sept (paid $3,000)
Last year it was $1.40 in Sept (busy)
Sept arrives and $1.40 happens, “option” is cashed in at $1.90
OR Sept arrives and $2.10 happens (let “option” expire)
“Future” is betting what the price will be in Sept
Criteria to evaluate a mutual fund company (following it is not as easy as looking on websites listed below)
• Earnings Decreases
• Earnings Surprise
• PEG ratio – want less than 1
• PE’s
Favorite Investment Websites of Dan’s, if he likes the company he puts it on a “Watch List” sorted by 4-week
• Zacks – the favorite hangout of Dan’s
• Zacks.com – the favorite hangout of Dan’s, it’s free, when out of RVYCF sign up for newsletter
• Red stocks – will continue to lose money
• Standard & Poor – independent, has list of funds
• ValueLine
• CNBC
Losing Money – Taking “Heat”
Chloe & Jack invested in Trust Deeds – lost $10,000
Investments were
1. $10,000 - 14.4%
2. $10,000 – 12.4%
3. $10,000 – 10.4%
4. $10,000 – 8.4%
5. $10,000 – lost which just go with the territory, investments take time to work
Chloe & Jack would collect $423,000 from a $50,000 investment after 20 years so a $10,000 loss was no big deal
1. How do we find the good ones?
Skim the top 5% performing funds – this is what you want to own
Add them to a “watch list”
2. Morningstar.com
• Screen
• Fund Category
• 3 month rank within category
• 12 month rank within category
• 3 year rank within category
Morningstar example $10 per month – in Dan’s acct
Domestic stock – in US
No sector – real estate, etc.
Best performance for 12 months
Best performance for 3 years
46 choices
Schneider Value is Dan’s favorite Mutual Fund but it has a $20,000 minimum investment
3. Create a Watch List
• Create a “Watch list” for stocks and don’t invest your money into anything that is not on your watch list (top 5% stocks)
• Dan tracks his investments in Microsoft Money 2000 – handout was a “Portfolio Report”
• 4 week return 5.5% Artisan Mid Cap Value (Dan believes that the trend happens in 4 weeks – this is what to invest in)
How much money do we put into our Investments?
The amount of money is the most critical decision in investing
(ex. Put your $$ on the fastest horse in the race to get the most money out of your bet)
Mutual Fund % Divisions for Investments and Mutual Fund Names
30% - Schneider
25% - Fairhome
20% - Oakmark Global
15% - Kinetic Small
10% - T Rowe Price – global
(75% of money is on the fasting and best growing fund - fastest “horse”)
How do I become a millionaire another way? With the 50/40 RULE
Invest $50,000 by the time you are 40 yrs old and don’t touch it for 25 years
Save $100 month earning 8% interest starting at age 25
Look below to see what you can get with $50,000 invested at 14.4% interest at age 40
Age 40 = $50,000
Age 45 = $100,000
Age 50 = $200,000
Age 55 = $400,000
Age 60 = $800,000
Age 65 = $1,600,000
StockCharts.com – technical analysis for investing money, Monday Indicator, 20 graphs that tell you the state of the market, the tab “ChartSchool” to learn
Stock Short Definition: When someone shorts a stock [sometimes called "selling short"], they borrow shares of a company from an investor and sell those borrowed shares at the current market price. The hope is that the stock price will fall so the short seller can repurchase the stock at a lower price and pay back the person they borrowed from. Example: You decide to short 10 shares of a stock that costs $50. You enter a short order with your broker, who borrows the stock from another one of his or her clients. Once you have the borrowed shares, you sell them. Since you didn't own those shares, you are going to have to pay the owner back in a short amount of time. The stock price falls to $40, so you purchase the shares. This costs you $400 [10 shares x $40 per share] and give them back to the original owner. Since you sold their shares for $50 earlier, you made $500 [10 shares you borrowed x $50 per share]. Your profit is the difference between the two, in this case, $100 [because $500 - $400 = $100].
Futures & Options – Example was “Ranching Family”
500 cattle going to market in September, it is May now
Is there a way to lock in $1.90 “option” to sell in Sept (paid $3,000)
Last year it was $1.40 in Sept (busy)
Sept arrives and $1.40 happens, “option” is cashed in at $1.90
OR Sept arrives and $2.10 happens (let “option” expire)
“Future” is betting what the price will be in Sept
Criteria to evaluate a mutual fund company (following it is not as easy as looking on websites listed below)
• Earnings Decreases
• Earnings Surprise
• PEG ratio – want less than 1
• PE’s
Favorite Investment Websites of Dan’s, if he likes the company he puts it on a “Watch List” sorted by 4-week
• Zacks – the favorite hangout of Dan’s
• Zacks.com – the favorite hangout of Dan’s, it’s free, when out of RVYCF sign up for newsletter
• Red stocks – will continue to lose money
• Standard & Poor – independent, has list of funds
• ValueLine
• CNBC
Losing Money – Taking “Heat”
Chloe & Jack invested in Trust Deeds – lost $10,000
Investments were
1. $10,000 - 14.4%
2. $10,000 – 12.4%
3. $10,000 – 10.4%
4. $10,000 – 8.4%
5. $10,000 – lost which just go with the territory, investments take time to work
Chloe & Jack would collect $423,000 from a $50,000 investment after 20 years so a $10,000 loss was no big deal
Day 2 - Balance Sheets & Mortgages - May 9, 2007
Smart Home Mortgage
Whatever your mortgage is, increase your payment by 1/3 to pay it off in 17 years (13 years sooner). Continue to SAVE and invest that payment amount for the next 13 years for your retirement. This is a great way to have 1/2 million $$ by age 60.
Balance Sheets
Businesses complete balance sheets once per year, so should you.
Assets (own) - Liabilities (owe, debt incurred for something purchased) = Net Worth
Balance Sheets are for tracking YOUR Net Worth
What's cool about a balance sheet? It figures what your net worth growth rate is (how fast your $$ is growing).
Liquid Assets: checking, savings, emergency funds in money market accounts, cash
Personal Assets: Residence (home), furnishings, vehicles
Retirement Assets: 401K, IRA, Pension
Investment Assets: Mutual funds, bonds, real estate, stocks
Debt: Mortgage
Dan's Advice: Create a Financial Notebook with the above information included in it. Purchase 3 Ring Binder, Tabbed Dividers, 3 Hole Punch
Jay Leno's 101 plan - all of his Tonight's Show money is NOT spent, it's saved and invested. He lives on his "extras" like personal appearances. Rich people have SAVED their money!
Investments
1/2 of the Stocks on the New York Stock Exchange are owned by people, 1/2 are owned by companies. When you begin a company, eventually an IPO - Initial Public Offering of shares can be presented to Wall Street. Shares are offered to people to purchase (called stocks) to invest in this company. Dan's advice, invest in Mutual Funds (many stocks in a portfolio operated by a manger).
see morningstar.com for Investment Information
Bonds - period 3
Municipalities - city's request to get money for water or sewer.
Guaranteed Interest Contract - guarantees of interest
Whatever your mortgage is, increase your payment by 1/3 to pay it off in 17 years (13 years sooner). Continue to SAVE and invest that payment amount for the next 13 years for your retirement. This is a great way to have 1/2 million $$ by age 60.
Balance Sheets
Businesses complete balance sheets once per year, so should you.
Assets (own) - Liabilities (owe, debt incurred for something purchased) = Net Worth
Balance Sheets are for tracking YOUR Net Worth
What's cool about a balance sheet? It figures what your net worth growth rate is (how fast your $$ is growing).
Liquid Assets: checking, savings, emergency funds in money market accounts, cash
Personal Assets: Residence (home), furnishings, vehicles
Retirement Assets: 401K, IRA, Pension
Investment Assets: Mutual funds, bonds, real estate, stocks
Debt: Mortgage
Dan's Advice: Create a Financial Notebook with the above information included in it. Purchase 3 Ring Binder, Tabbed Dividers, 3 Hole Punch
Jay Leno's 101 plan - all of his Tonight's Show money is NOT spent, it's saved and invested. He lives on his "extras" like personal appearances. Rich people have SAVED their money!
Investments
1/2 of the Stocks on the New York Stock Exchange are owned by people, 1/2 are owned by companies. When you begin a company, eventually an IPO - Initial Public Offering of shares can be presented to Wall Street. Shares are offered to people to purchase (called stocks) to invest in this company. Dan's advice, invest in Mutual Funds (many stocks in a portfolio operated by a manger).
see morningstar.com for Investment Information
Bonds - period 3
Municipalities - city's request to get money for water or sewer.
Guaranteed Interest Contract - guarantees of interest
Day 1 Review
Budget – In the last class we learned:
• How to adjust a budget
• The four Ds that lead to financial failure. What are they?
• How you manage your money is more important that the amount of money you make.
• We learned that if you can’t manage your monthly budget; you can’t save any money!! If you can’t save your money, you can never become wealthy.
• We learned that we are proud to own our own intellectual property that no one can take from us.
• We learned how to calculate how much money is required at a given interest rate to give us a return equal to your annual budget. What was the formula for that?
• We learned that everything in our life should have socially redeeming value including the television we watch.
• Wealthy people don’t rob banks they own them.
• We learned that if you can’t pay cash for it you have not earned the right to have it.
• We learned to pay our charge cards off in full each month.
• What was Dan’s Smart Home Mortgage all about?
• How to adjust a budget
• The four Ds that lead to financial failure. What are they?
• How you manage your money is more important that the amount of money you make.
• We learned that if you can’t manage your monthly budget; you can’t save any money!! If you can’t save your money, you can never become wealthy.
• We learned that we are proud to own our own intellectual property that no one can take from us.
• We learned how to calculate how much money is required at a given interest rate to give us a return equal to your annual budget. What was the formula for that?
• We learned that everything in our life should have socially redeeming value including the television we watch.
• Wealthy people don’t rob banks they own them.
• We learned that if you can’t pay cash for it you have not earned the right to have it.
• We learned to pay our charge cards off in full each month.
• What was Dan’s Smart Home Mortgage all about?
Day 1 - Budgets - April 11, 2007
Guest Speaker, "Dan"
A Retired Certified Financial Planner
and Registered Investment Advisor
Notes:
Dan shared his "Intellectual Property" to guide your money making decisions
100 people - 16 die (mortality) = 84
18 will be retired, with only 2 financially independent
The other 16 rely on RFC (Relatives, Family, Charity)
Parts of a Financial Plan
1. Budget
2. Balance Sheet
3. Investments
4. Retirement
5. Taxes
6. Insurance
7. Estate Planning: Wills & Trusts
Four Things Leading to Financial Failure
1. Debt
2. Death
3. Divorce
4. Drugs (Cigarettes cost $150 month x 12 x 30 years = $203,909.78 over a lifetime)
Socially Redeeming Values - associate yourself with these
Skill Sets - you need a set of skills to market yourself
Career Paths - Information available in CIS
Budget Talk - the worksheet is your "Intellectual Property"
Discretionary Income - you get to choose how the $$ is spent (clothing, lawn care)
Non discretionary - you can't change how the $$ is spent (mortgage, insurance, repairs)
KFY - Keep For Yourself
$1,500 x 12 months = $18,000 / .0625 interest = $288,000 return on investment
$4,092.35 x 12 months = $49,108.20 / .0721 interest = $681,112.34 return on investment
How much money should you have in an Emergency Fund? Three months income
Your parents want to lower investment risk. You should advise them to: Adjust their Asset Allocation
The rule of 72 means: Divide an interest rate into 72 and it tells you how long it will take for your money to double, Divide the number of years into 72 and it tells you how much interest you have to earn to double your money
Your sister knows you are the only one in the family that passed a Personal Money Management course. She's now looking to you for financial advice and she asks you. "What should I invest in first?" You reply with "Come see me when your credit cards are paid in full."
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