TAILIEUCHUNG - Lecture Personal financial planning – Chapter 3: Beginning the planning process

Lecture Personal financial planning – Chapter 3: Beginning the planning process. Communication, data gathering, and goal setting are interrelated topics. Our objective is to begin the planning process smoothly so that goal establishment and data gathering occur correctly and the required information is received. | Chapter 3 Beginning the Planning Process Chapter Goals Start the financial planning process smoothly. Determine how human behavior influences the PFP process. More easily ascertain personal goals that people have. Employ the data-gathering process in common planning situations. Improve your communication skills. Develop desirable interviewing and counseling techniques. Behavioral Finance Behavioral finance: The study of human actions in financial matters. Behavioral financial planning strives to understand and improve people’s decision-making abilities so that they can more easily achieve the goals they set. Knowledge of people’s behavior patterns and how they influence PFP are required parts of curriculums such as the CFP® Certification. Cultural Background Cultural background: the social and ethnic and religious backgrounds that contribute to our beliefs, material possessions, values and goals. Peer group: a group of friends and associates with similar backgrounds. Our actions are influenced by our cultural backgrounds. We tend to measure ourselves against our peer group. The Life Cycle Age strongly influences our interests and preferences. Life cycle stages: Young: 18-42 Middle Aged: 43-67 Seniors: 68 and beyond Let’s consider each in turn. The Life Cycle, cont. Young: 18-42 Tend to place great emphasis on their current standard of living and fairly often on their career advancement. Savings are sometimes given lower priority. Risk tolerances can often be high. Borrowing is fairly common. With dependents, the major concerns may include: The accumulation of real assets for a home and its possessions. Life insurance to protect other household members. The Life Cycle, cont. Middle Aged: 43-67 Emphasize planning for retirement. Better defined career parameters. More consistent cost of living. Financial assets are accumulated and expended for children’s educations. Risk tolerance tends to decline. Debt as a percentage of assets generally declines.

• Kế toán - Kiểm toán
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Planning process
• Behavioral finance
• Behavioral financial planning
• Behavioral life cycle theory
• Characteristics of finance
• Finance tools
• Cash flow planning
• Flow planning
• Special circumstances planning
• Divorce planning
• Retirement planning
• Retirement assets
• Educational planning
• Establish educational goal
• Tax planning
• Income taxation
• Estate planning
• Identify assets
• Financial statements analysis
• Financial statements
• Financial investments
• Expected rate of return
• Financial leverage
• Interest rates
• Time value of money
• Present value