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Financial planning chapter 8
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In a Business Week article, Mr. Ben Steverman discuses issues facing today’s youth. The article is titles “Advice for Young Investors.” The article discuses two individuals who are 22 years of age, both are just beginning their careers. One individual is attempting to pay off student loans quickly and then save money to travel. The other individual is attempting to purchase real estate and invest within the market. Mr. Steverman discusses ten important factors for which young investors need to consider when approaching the market. The first subject is the matter of cash, cash, and cash. Mr. Steverman states that individuals need to have readable access to a relatively large proportion of cash. It is recommended that young individual have access to ten thousand dollars worth of cash. However in today’s market it is recommended that individuals have readable access to an amount of cash that is in the range of fifteen to twenty thousand dollars. The need for readable access to cash is for the possibility that you may lose your job. The main reason of the readable cash is so that if an individual needs the cash for an emergency the individual will be able to access it at their own bank. This cash can be used for a wide array of things in the case of an emergency. If an individual losses their job, they will need to pay bills and purchase food. The amount of the money may differ if the individual is engaged into a family, as the family will have higher bills and needs for money. Secondly is the need for sufficient insurance. If you become disabled, disability insurance will cover your living expenses in the event that you become disabled. As today’s youth is more concerned with what is taking place in today and tomorrow, they are... ... middle of paper ... ...it is most recommended to take full advantage of that opportunity. While it is very important for young individuals to start to save and invest for their retirement, there are aspects that they should consider before jumping into investing into securities. Those subjects are cash, enough insurance, should you buy a home, how secure is your job, how much risk can you handle, equities are risky, get started, do everything, be flexible, and can you save and invest too much. These ten aspects should be looked at, analyzed, and taken into very critical thought before saving and investing into securities. Works Cited Steverman, Ben. "Advice for Young Investors - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. 7 Apr. 2009
This paper explores the characteristics of traditional and Roth IRAs, as well as the similarities and differences between both. The main characteristic of both IRAs is that both are considered tax shelters—a way for individuals to receive reduced tax liability by decreasing one’s taxable income. Traditional IRA’s are called “deductible” because contributions made with earned income, up to specified limits, are fully or partially deductible from income depending upon factors such as adjusted gross income and filing status. Upon withdrawal, the money is then taxed as ordinary income. Roth IRAs are the antithesis—the money that you contribute here is already taxed at your marginal tax rate and the withdrawals are generally not taxed. Only money that is considered investment income is taxed. Because of the income limits of Roth IRAs, some individuals choose first to contribute to traditional IRAs or employer-sponsored programs and subsequently convert to a Roth IRA. For younger individuals with lower incomes, Roth IRAs seem to be the better choice based on the below research. The money is taxed at a lower rate and then contributed. As one ages, tax rates are probable to rise and the cost of contributing increases as a result. Saving in full measure, below the legal limit and beginning this process at a young age seems the best option for a enjoyable retirement in years to come.
The company that I was assigned was Exelixis Inc. The organization is a small-cap growth company in the health care sector, and is expected to underperform the market over the next six months with very high risk (http://www.investing.money.msn.com). Based on the value line report for this security, short-term gains are feasible. Having a technical rating of 2, which was raised recently, it is likely that Exelixis Inc. will grow in the short term. However, long-term, this stock scores poorly with a rating of 4 for timeliness. This rating likely has to do with the large abatement the stock took back in 2000. The stock price had a peak of $47.50 and dropped dramatically to approximately $11.00 that same year. Ever since then, the stock price has yet to even come close to reaching the heights that it once had. This lack of augmentation is likely the reason for the low technical and safety ratings. The safety rating itself is a 5, meaning that the stock is as risky as any security can be.
...(which they do not control)” (Taleb). People should become more involved with the financial process. A person should save their money for the future instead of relying on investments to pay off. When investing they should choose things that are low risk and not take a large gamble.
This article focuses on six of the most common mistakes that people make when planning for retirement and how they can be avoided. It further discusses how to utilize a company matched 401k plan and some of the penalties for withdrawing money early. This article also provides information and steps that should be taken to diversify investments and balance a portfolio.The author, Jeremy Vohwinkle, has spent a number of years helping individuals make sound financial decisions as an investor, financial planner, and retirement planning specialist. In addition to working with individual clients, he provides articles, resources, and educational materials that benefit those who are seeking financial advice.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
This statement from the Green Party Manifesto claims that “Disability is a social phenomenon” and “While many individuals have physical or sensory impairments or learning difficulties or are living with mental health problems, it is the way society responds to these which creates disability” (2010). The aim of this paper is to consider the strength of this view. With the help of modern and contemporary sociological theory surrounding disability and health, it will look at both the medical and social models of disability with the aim to conclude whether disability is a problem that needs to be addressed by medical professionals alone or by society as a whole. The medical model defines disability as “any restriction or lack of ability (resulting from an impairment of an individual) to perform an activity in the manner or within the range considered normal for a human being, for example, to climb stairs or walk to the shops (WHO 1981).... ...
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
Parents may not feel comfortable enough with their own financial situation to discuss personal finance with their children (Williams, 2009). Additionally, the parents, or other influencers, may not have a full grasp of certain concepts of financial literacy. In an article by Carlin and Robinson (2010) it was noted that “many retirement-age adults lack the financial literacy to understand the basic features of their retirement plans.” Financial literacy through socialization and practice may not be enough for students; whether it be “disadvantaged” youths who often lack a high quality of life at home, or youths whose parents have stable jobs with retirement
The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus...
Students should be required to take a personal finance in high school to further there education with financial skills.Many students could benefit from the class if they pay attention.Annamaria Lusardia There are 34 states that include personal finance within there curriculum upsaid“we need to teach the basics of economics and finances so people can make financial decisions in a changing world.” There is only 13 states that require students to take a personal finance course or include the subject in a economics course
I am a 19 year-old college student attending Grand Canyon University and majoring in Business Administration currently maintaining a 4.0 and credit status of a junior. During my first year here I have become involved in various business clubs to broaden my view of the world along with meeting new individuals to broaden my network. Through this experience one thing has been reoccurring throughout each one of these clubs and that is the idea that investing is dangerous and risky and should be avoided until you have money to spare. This misconception about investing is a major cause for millennials to stray away from the stock market to safer methods of saving like just putting all
Throughout this course, I am amaze by how much I’m learning about what it was and it is to be disable in today society. But just like any other crisis, it’s crazy what people with disability went through in the passed and how far they have come and. Form perceiving disability as liability to the public and rejecting people with disability in schools, work places and communities, to accepting them open heartily and having laws that helps protect the form discrimination. Staying with the topic of disability, I would like to look at both the positive and negative impact on not only an individual living with a disability but also what the family have to go throw. Many people have views about the disabled but do not have them from first hand experience. As human, it is part of our nature to be judge mental. We sometime judge without even know them or putting ourselves in their predicament, but experiencing disability first hand, I’ll say it has it ups and down.
They observed that millennials have less trust in banks and financial institutions because of the Great Recession. Millennials are more educated when it comes to financing big purchases compared to previous generations. The research also shows that 80% of millennials believe they should start saving for retirement as soon as possible. Most millennials were making their break in the “real world” when the Great Recession broke out, not only did this affect their trust in financial institutions, but it also made them take financial matters into their own hands. Millennials financial stability is on the rise and growing at a much faster rate than their counter generations. Millennials are becoming more diverse with their investment options and especially taking into consideration the need to save for their future. This article exemplifies this case for millennials and their
It is no doubt that money is something that is needed in everyone’s lives. Our clothes, food, health insurance, education, and so many more require money. Many individuals understand the significance and benefits of money. When you have good income and financial resources, you will be given freedom and choices in this life. There are some people who love to gain dsemore money and there are also some people who loathe spending money even on necessary things. These are called money attitudes, in other words, people’s personalities towards money. There are studies and researches on people’s attitudes towards money because it influences them financially and it can determine whether they can achieve financial success or not. There are three basic
Personal financial planning is important because it helps you prepare financially for the future. My first short-term financial goal is to have an 8-month emergency savings account. This class helped me understand the important steps needed to achieve my financial goals. “Successful financial planning requires specific goals combined with spending, saving, investing, and borrowing strategies based on your personal situation and various social and economic factors, especially inflation and interest rates” (Kapoor, Dlabay & Hughes, 2012). First I evaluated my spending habits. This allowed me to see where I was