Solution manual for personal finance 14th edition by e thomas garman raymond e forgue

SOLUTION MANUAL
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Personal Finance, 14th Edition
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By E. Thomas Garman, Chapter 1 - 17
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,TABLE OF CONTENTS M M M




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 M M M


GARMAN/FOX,M PERSONALM FINANCEM 14E,M CHAPTERM 1:M THINKINGM LIKEM AM FINANCIALM PLANNER


TABLE OF CONTENTS
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AnswersMtoMChapterMConceptMChecks........................................................................................ 2
WhatMDoMYouMRecommendMNow? ............................................................................................. 4
Let’sMTalkMAboutMIt ..................................................................................................................................................... 5
DoMtheMMath ................................................................................................................................. 6
FinancialMPlanningMCases ............................................................................................................. 8
ExtendedMLearning ...................................................................................................................... 10

, ANSWERS TO CHAPTER CONCEPT CHECKS
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LO1.1MRecognizeMtheMkeysMtoMachievingMfinancialMsuccess.
1. ExplainMtheMfiveMstepsMinMtheMfinancialMplanningMprocess.

Answer:MThereMareMfiveMfundamentalMstepsMtoMtheMpersonalMfinancialMplanningMprocess:M(1)M
evaluateMyourMfinancialMhealthMtoMyourMeducationMandMcareerMchoice;M(2)MdefineMyourMfinancia
lMgoals;M(3)MdevelopMaMplanMofMactionMtoMachieveMyourMgoals;M(4)MimplementMspendingMandMs
avingMplansMtoMmonitorMandMcontrolMprogressMtowardMyourMgoals;MandM(5)MreviewMyourMfinan
cialMprogressMandMmakeMchangesMasMappropriate.

2. DistinguishMamongMfinancialMsuccess,MfinancialMsecurity,MandMfinancialMhappiness.

Answer:MFinancialMsuccessMisMtheMachievementMofMfinancialMaspirationsMthatMareMdesired,Mpla
nned,MorMattempted.MSuccessMisMdefinedMbyMtheMindividualMorMfamilyMthatMseeksMit.MFinancialM
successMmayMbeMdefinedMasMbeingMableMtoMliveMaccordingMtoMone’sMstandardMofMliving.MFinan
cialMsecurityMisMthatMcomfortableMfeelingMthatMyourMfinancialMresourcesMwillMbeMadequateMtoM
fulfillManyMneedsMyouMhaveMasMwellMasMyourMwants.MFinancialMhappinessMisMtheMexperienceMy
ouMhaveMwhenMyouMareMsatisfiedMwithMmoneyMmatters.MPeopleMwhoMareMhappyMaboutMtheirMfi
nancesMwillMseeMaMspilloverMintoMpositiveMfeelingsMaboutMlifeMinMgeneral.

3. SummarizeMwhatMyouMwillMaccomplishMstudyingMpersonalMfinance.

Answer:MSeveralMthingsMcanMbeMaccomplishedMbyMstudyingMpersonalMfinance.MRecognizeMhowMt
oMmanageMunexpectedMandMexpectedMfinancialMevents.MPayMasMlittleMasMpossibleMinMincomeMtaxe
s.MUnderstandMhowMtoMeffectivelyMcomparisonMshopMforMvehiclesMandMhomes.MProtectMwhatMweM
own.MInvestMwisely.MAccumulateMandMprotectMtheMwealthMthatMweMmayMchooseMtoMspendMduring
MourMnon-workingMyearsM(e.g.,Mretirement)MorMdonate.


4. WhatMareMtheMbuildingMblocksMtoMachievingMfinancialMsuccess?

Answer:MTheMbuildingMblocksMforMachievingMfinancialMsuccessMincludeMaMfoundationMofMregula
rMincomeMthatMprovidesMtheMmeansMtoMsupportMyourMlifestyleMandMsaveMforMdesiredMgoalsMin
MtheMfuture.MTheMfoundationMsupportsMaMbaseMofMvariousMbankingMaccounts,MinsuranceMprote

ction,MandMemployeeMbenefits.MThenMweMcanMestablishMgoals,MaMrecordkeepingMsystem,MaMbud
get,MandManMemergencyMsavingsMfund.MWeMwillMalsoMmanageMvariousMexpensesMsuchMasMhous
ing,Mtransportation,Minsurance,MandMtheMpaymentMofMtaxes.MWeMwillMalsoMneedMtoMhandleMcre
dit,Msavings,MandMeducationalMcosts.MFinally,MweMinvestMinMvariousMinvestmentMalternativesMsuc
hMasMmutualMfunds,Mstocks,MandMbonds,MoftenMforMretirement.MAsMaMresultMofMallMtheseMbuildi
ngMblocks,MweMareMmoreMaptMtoMhaveMaMfinanciallyMsuccessfulMlife.

LO1.2MUnderstandMhowMtheMeconomyMaffectsMyourMpersonalMfinancialMsuccess.
1. SummarizeMtheMphasesMofMtheMbusinessMcycle.

Answer:MTheMbusinessMcycleMentailsMaMwavelikeMpatternMofMrisingMandMfallingMeconomicMactivi
tyMasMmeasuredMbyMeconomicMindicatorsMlikeMunemploymentMratesMorMtheMgrossMdomesticMpr