Personal Financial Planning Final Exam || 100% Accurate Answers.
Babe Ruth Rule correct answers always have three plans for achieving your financial goals
Goal Credit Score correct answers 700
post-mortem step of the financial planning process correct answers review your progress and
revise your plans to reach your goals
biggest enemy of trying to improve financial condition correct answers procrastination
why should financial plans be flexible and liquid correct answers stuff happens
estimate what percent of your salary to be take home pay correct answers 75 percent
what does a balance sheet tell you correct answers what you own (assets) and how you have paid
for it (liabilities and net worth)
what factors guide all financial plans correct answers flexibility, liquidity, protection, and
maximizing earnings left after paying taxes
how can you measure tangible assets correct answers can I touch it an use it in everyday life
what are the main uses of a monthly budget correct answers 1) determining how much money
you will be able to save and invest each month
2) figuring out how to reduce your spending without hurting your lifestyle too much
3) estimating the maximum monthly car loan payment you will be able to afford
,how much money should you have as personal savings after you graduate correct answers one to
two months of living expenses
what is net worth correct answers the amount something is worth minus the amount you still owe
on it
what are important questions a financial advisor will ask you correct answers what do you own
and what do you owe
what is the fastest way to improve your financial position correct answers reduce your spending
without hurting your lifestyle too much
risk return correct answers chance of losing money you invest but also a chance of getting money
back
what does it mean to pay yourself first correct answers save or invest money from your paycheck
as soon as you receive it
diversification can also be said by correct answers dont put all your eggs in one basket
what is an assets under management fee correct answers an annual fee equal to 'x' amount of the
money you have invested with him
1,000 at 12% interest for 42 years will yield correct answers $163,987
a strong record keeping system allows you to correct answers know exactly how much youre
spending, track expenses, and know where youre spending your financial resources
a CD with 10,000 for 5 years at 4% quarterly interest will yield correct answers 12,200-12,300
, always use at least three sources of info to get the 'big picture' is what financial principle correct
answers knowledge is power
evaluating your financial health consists of correct answers determining your worth, preparing a
balance sheet, preparing an income statement, and determining where your money comes from
and where it goes
regularly saving a little money when you are young can correct answers result in a large final
payoff
monthly payments for a 35,000 student loan at 7% for 10 years in correct answers $350-450
why do most Americans keep financial records correct answers to prepare their income taxes
wants 30,000 in taxable account after 10 years: 6% annual interest, is in 15% marginal tax
bracket. yearly investment needs to be correct answers 2,200-2,300
550 for 72 months at 7.5% interest. can afford a loan of correct answers 31,810
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off
their car loan in three years, their gross household income is $5,700 per month, and they receive
$95 per month in interest income from their investments. They have listed the following items
from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
Babe Ruth Rule correct answers always have three plans for achieving your financial goals
Goal Credit Score correct answers 700
post-mortem step of the financial planning process correct answers review your progress and
revise your plans to reach your goals
biggest enemy of trying to improve financial condition correct answers procrastination
why should financial plans be flexible and liquid correct answers stuff happens
estimate what percent of your salary to be take home pay correct answers 75 percent
what does a balance sheet tell you correct answers what you own (assets) and how you have paid
for it (liabilities and net worth)
what factors guide all financial plans correct answers flexibility, liquidity, protection, and
maximizing earnings left after paying taxes
how can you measure tangible assets correct answers can I touch it an use it in everyday life
what are the main uses of a monthly budget correct answers 1) determining how much money
you will be able to save and invest each month
2) figuring out how to reduce your spending without hurting your lifestyle too much
3) estimating the maximum monthly car loan payment you will be able to afford
,how much money should you have as personal savings after you graduate correct answers one to
two months of living expenses
what is net worth correct answers the amount something is worth minus the amount you still owe
on it
what are important questions a financial advisor will ask you correct answers what do you own
and what do you owe
what is the fastest way to improve your financial position correct answers reduce your spending
without hurting your lifestyle too much
risk return correct answers chance of losing money you invest but also a chance of getting money
back
what does it mean to pay yourself first correct answers save or invest money from your paycheck
as soon as you receive it
diversification can also be said by correct answers dont put all your eggs in one basket
what is an assets under management fee correct answers an annual fee equal to 'x' amount of the
money you have invested with him
1,000 at 12% interest for 42 years will yield correct answers $163,987
a strong record keeping system allows you to correct answers know exactly how much youre
spending, track expenses, and know where youre spending your financial resources
a CD with 10,000 for 5 years at 4% quarterly interest will yield correct answers 12,200-12,300
, always use at least three sources of info to get the 'big picture' is what financial principle correct
answers knowledge is power
evaluating your financial health consists of correct answers determining your worth, preparing a
balance sheet, preparing an income statement, and determining where your money comes from
and where it goes
regularly saving a little money when you are young can correct answers result in a large final
payoff
monthly payments for a 35,000 student loan at 7% for 10 years in correct answers $350-450
why do most Americans keep financial records correct answers to prepare their income taxes
wants 30,000 in taxable account after 10 years: 6% annual interest, is in 15% marginal tax
bracket. yearly investment needs to be correct answers 2,200-2,300
550 for 72 months at 7.5% interest. can afford a loan of correct answers 31,810
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off
their car loan in three years, their gross household income is $5,700 per month, and they receive
$95 per month in interest income from their investments. They have listed the following items
from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
