SOLUTION MANUAL Personal Finance, 14th Edition By E. Thomas Garman, Chapter 1 - 17 Latest Version Update

SOLUTION MANUAL

Personal Finance, 14th Edition

By E. Thomas Garman, Chapter 1 - 17

,TABLE OF CONTENTS
Q Q Q



PartQI:QFINANCIALQPLANNING.

1.QUnderstandingQPersonalQFinance.

2.QCareerQPlanning.
3.QFinancialQStatements,QGoals,QandQBudgets.

PartQII:QMONEYQMANAGEMENT.
4.QManagingQIncomeQTaxes.

5.QManagingQCheckingQandQSavingsQAccounts.

6.QBuildingQandQMaintainingQGoodQCredit.

7.QCreditQCardsQandQConsumerQLoans.
8.QVehiclesQandQOtherQMajorQPurchases.

9.QObtainingQAffordableQHousing.
PartQIII:QINCOMEQANDQASSETQPROTECTION.

10.QManagingQPropertyQandQLiabilityQRisk.
11.QPlanningQforQHealthQCareQExpenses.
12.QLifeQInsuranceQPlanning.

PartQIV:QINVESTMENTS.
13.QInvestmentQFundamentals.

,14.QInvestingQinQStocksQandQBonds.
15.QMutualQandQExchange-TradedQFunds.

16.QRealQEstateQandQHigh-RiskQInvestments.
17.QRetirementQandQEstateQPlanning.




Solution and Answer Guide Q Q Q
GARMAN/FOX,Q PERSONALQ FINANCEQ 14E,Q CHAPTERQ 1:Q THINKINGQ LIKEQ AQ FINANCIALQ PLANNER


TABLEQOFQCONTENTS
AnswersQtoQChapterQConceptQChecks ..................................................................................... 2
WhatQDoQYouQRecommendQNow?........................................................................................... 4
Let’sQTalkQAboutQIt ................................................................................................................................................... 5
DoQtheQMath ................................................................................................................................ 6
FinancialQPlanningQCases ............................................................................................................ 8
ExtendedQLearning ..................................................................................................................... 10

, ANSWERSQTOQCHAPTERQCONCEPTQCHECKS
LO1.1QRecognizeQtheQkeysQtoQachievingQfinancialQsuccess.
1. ExplainQtheQfiveQstepsQinQtheQfinancialQplanningQprocess.

Answer:QThereQareQfiveQfundamentalQstepsQtoQtheQpersonalQfinancialQplanningQprocess:
Q(1)QevaluateQyourQfinancialQhealthQtoQyourQeducationQandQcareerQchoice;Q(2)QdefineQy
ourQfinancialQgoals;Q(3)QdevelopQaQplanQofQactionQtoQachieveQyourQgoals;Q(4)Qimpleme
ntQspendingQandQsavingQplansQtoQmonitorQandQcontrolQprogressQtowardQyourQgoals;Qa
ndQ(5)QreviewQyourQfinancialQprogressQandQmakeQchangesQasQappropriate.

2. DistinguishQamongQfinancialQsuccess,QfinancialQsecurity,QandQfinancialQhappiness.

Answer:QFinancialQsuccessQisQtheQachievementQofQfinancialQaspirationsQthatQareQdesire
d,Qplanned,QorQattempted.QSuccessQisQdefinedQbyQtheQindividualQorQfamilyQthatQseeksQi
t.QFinancialQsuccessQmayQbeQdefinedQasQbeingQableQtoQliveQaccordingQtoQone’sQstanda
rdQofQliving.QFinancialQsecurityQisQthatQcomfortableQfeelingQthatQyourQfinancialQresourc
esQwillQbeQadequateQtoQfulfillQanyQneedsQyouQhaveQasQwellQasQyourQwants.QFinancial
QhappinessQisQtheQexperienceQyouQhaveQwhenQyouQareQsatisfiedQwithQmoneyQmatters.
QPeopleQwhoQareQhappyQaboutQtheirQfinancesQwillQseeQaQspilloverQintoQpositiveQfeelin
gsQaboutQlifeQinQgeneral.

3. SummarizeQwhatQyouQwillQaccomplishQstudyingQpersonalQfinance.

Answer:QSeveralQthingsQcanQbeQaccomplishedQbyQstudyingQpersonalQfinance.QRecognizeQh
owQtoQmanageQunexpectedQandQexpectedQfinancialQevents.QPayQasQlittleQasQpossibleQinQi
ncomeQtaxes.QUnderstandQhowQtoQeffectivelyQcomparisonQshopQforQvehiclesQandQhomes.Q
ProtectQwhatQweQown.QInvestQwisely.QAccumulateQandQprotectQtheQwealthQthatQweQmayQc
hooseQtoQspendQduringQourQnon-workingQyearsQ(e.g.,Qretirement)QorQdonate.

4. WhatQareQtheQbuildingQblocksQtoQachievingQfinancialQsuccess?

Answer:QTheQbuildingQblocksQforQachievingQfinancialQsuccessQincludeQaQfoundationQofQ
regularQincomeQthatQprovidesQtheQmeansQtoQsupportQyourQlifestyleQandQsaveQforQdesir
edQgoalsQinQtheQfuture.QTheQfoundationQsupportsQaQbaseQofQvariousQbankingQaccounts
,QinsuranceQprotection,QandQemployeeQbenefits.QThenQweQcanQestablishQgoals,QaQrecord
keepingQsystem,QaQbudget,QandQanQemergencyQsavingsQfund.QWeQwillQalsoQmanageQva
riousQexpensesQsuchQasQhousing,Qtransportation,Qinsurance,QandQtheQpaymentQofQtaxes.
QWeQwillQalsoQneedQtoQhandleQcredit,Qsavings,QandQeducationalQcosts.QFinally,QweQinve
stQinQvariousQinvestmentQalternativesQsuchQasQmutualQfunds,Qstocks,QandQbonds,Qoften
QforQretirement.QAsQaQresultQofQallQtheseQbuildingQblocks,QweQareQmoreQaptQtoQhave
QaQfinanciallyQsuccessfulQlife.

LO1.2QUnderstandQhowQtheQeconomyQaffectsQyourQpersonalQfinancialQsuccess.
1. SummarizeQtheQphasesQofQtheQbusinessQcycle.