Solution Manual and Answer Guide for Personal Finance, 14th Edition By (E. Thomas Garman, 2024) Verified Chapters 1 - 17, Complete Newest Version

SOLUTION MANUAL

Personal Finance, 14th Edition

By E. Thomas Garman, Chapter 1 - 17

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Part I: FINANCIAL PLANNING.
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1. Understanding Personal Finance.
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2. Career Planning.
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3. Financial Statements, Goals, and Budgets.
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Part II: MONEY MANAGEMENT.
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4. Managing Income Taxes.
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5. Managing Checking and Savings Accounts.
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6. Building and Maintaining Good Credit.
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7. Credit Cards and Consumer Loans.
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8. Vehicles and Other Major Purchases.
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9. Obtaining Affordable Housing.
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Part III: INCOME AND ASSET PROTECTION.
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10. Managing Property and Liability Risk.
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11. Planning for Health Care Expenses.
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12. Life Insurance Planning.
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Part IV: INVESTMENTS.
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13. Investment Fundamentals.
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,14. Investing in Stocks and Bonds.
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15. Mutual and Exchange-Traded Funds.
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16. Real Estate and High-Risk Investments.
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17. Retirement and Estate Planning.
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Solution and Answer Guide BG BG BG




GARMAN/FOX, PERSONAL FINANCE 14E, CHAPTER 1: THINKING LIKE A FINANCIAL PLANNER
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TABLE OF CONTENTS BG BG




Answers to Chapter Concept Checks .......................................................................................... 2
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What Do You Recommend Now?................................................................................................ 4
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Let’s Talk About It ....................................................................................................................................................... 5
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Do the Math .................................................................................................................................. 6
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Financial Planning Cases............................................................................................................... 8
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Extended Learning ...................................................................................................................... 10
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, ANSWERS TO CHAPTER CONCEPT CHECKS BG BG BG BG




LO1.1 Recognize the keys to achieving financial success.
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1. Explain the five steps in the financial planning process.
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Answer: There are five fundamental steps to the personal financial planning process: (1) evalu
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ate your financial health to your education and career choice; (2) define your financial goals; (3
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) develop a plan of action to achieve your goals; (4) implement spending and saving plans to
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monitor and control progress toward your goals; and (5) review your financial progress and m
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ake changes as appropriate.
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2. Distinguish among financial success, financial security, and financial happiness.
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Answer: Financial success is the achievement of financial aspirations that are desired, planne
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d, or attempted. Success is defined by the individual or family that seeks it. Financial success m
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ay be defined as being able to live according to one’s standard of living. Financial security is
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that comfortable feeling that your financial resources will be adequate to fulfill any needs you
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have as well as your wants. Financial happiness is the experience you have when you are sati
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sfied with money matters. People who are happy about their finances will see a spillover into
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positive feelings about life in general.
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3. Summarize what you will accomplish studying personal finance.
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Answer: Several things can be accomplished by studying personal finance. Recognize how to ma
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nage unexpected and expected financial events. Pay as little as possible in income taxes. Underst
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and how to effectively comparison shop for vehicles and homes. Protect what we own. Invest wis
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ely. Accumulate and protect the wealth that we may choose to spend during our non-
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working years (e.g., retirement) or donate.
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4. What are the building blocks to achieving financial success?
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Answer: The building blocks for achieving financial success include a foundation of regular inc
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ome that provides the means to support your lifestyle and save for desired goals in the future
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. The foundation supports a base of various banking accounts, insurance protection, and empl
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oyee benefits. Then we can establish goals, a recordkeeping system, a budget, and an emerge
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ncy savings fund. We will also manage various expenses such as housing, transportation, insur
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ance, and the payment of taxes. We will also need to handle credit, savings, and educational c
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osts. Finally, we invest in various investment alternatives such as mutual funds, stocks, and bo
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nds, often for retirement. As a result of all these building blocks, we are more apt to have a fi
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nancially successful life. BG BG




LO1.2 Understand how the economy affects your personal financial success.
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1. Summarize the phases of the business cycle. BG BG BG BG BG BG




Answer: The business cycle entails a wavelike pattern of rising and falling economic activity as
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measured by economic indicators like unemployment rates or the gross domestic product. The
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