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Material
SOLUTION MANUAL w
w
Personal Finance, 14th Edition
ww ww ww
w w By E. Thomas Garman, Chapter 1 - 17
ww ww ww ww ww ww ww
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Material
TABLE OF CONTENTS ww ww w w
Part I: FINANCIAL PLANNING.
ww w w w w
1. Understanding Personal Finance. ww ww
2. Career Planning. ww
3. Financial Statements, Goals, and Budgets.
ww ww ww ww
Part II: MONEY MANAGEMENT.
ww ww ww ww
4. Managing Income Taxes. ww ww
5. Managing Checking and Savings Accounts.
ww ww ww ww
6. Building and Maintaining Good Credit.
ww ww ww ww
7. Credit Cards and Consumer Loans.
ww ww w w ww
8. Vehicles and Other Majory Purchases.
ww ww w w ww
9. Obtaining Affordable Housing. ww ww
Part III: INCOME AND ASSET PROTECTION.
ww w w w w ww w w
10. Managing Property and Liability Risk.
ww ww ww w w
11. Planning for Health Care Expenses.
ww w w w w w w
12. Life Insurance Planning.
ww ww
Part IV: INVESTMENTS.
ww ww ww
13. Investment Fundamentals. ww
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Material
14. Investing in Stocks and Bonds. w w w w w w w w
15. Mutual and Exchange-Traded Funds. ww ww ww
16. Real Estate and High-Risk Investments.
ww w w w w w w
17. Retirement and Estate Planning. ww ww w w
SolutionandAnswerGuide w w w
GARMAN/FOX, w w PERSONAL w w w w FINANCE w w w w 14E, w w CHAPTER w w w w 1: w w THINKING w w w w LIKE w w w w AY w w FINANCIAL
w wPLANNER
w w
TABLE OF CONTENTS
W W W W W
Answers w w to w w Chapter w w Concept w w Checks .............................................................................2
What w w Do w w You w w Recommend w w Now? ..................................................................................4
Let’s w w Talk w w About w w It ...............................................................................................................5
Do w w the w w Math............................................................................................................................6
Financial w w Planning w w Cases .........................................................................................................8
Extended w w Learning ................................................................................................................... 10
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Material
ANSWERS TO CHAPTER CONCEPT CHECKS W W W W W W W W
LO1.1 w w Recognize w w the w w keys w w to w w achieving w w financial w w success.
1. Explain w w the w w five w w steps w w in w w the w w financial w w planning w w process.
Answer: There are five fundamental steps to the personal financial planning
w w w w w w w w w w w w w w w w w w w w
w wprocess:
(1) evaluate
w w your financial health to your education and career choice;
w w w w w w w w w w w w w w w w w w
(2) define your financial goals; (3) develop a plan of
w w w w w w action to achieve ww w w w w w w w w w w w w w w w w w w
w your
w goals; (4) implement spending and saving plans to monitor
w w w w w w ww w w w w w w w w w w
w and control progress toward your goals; and (5) review your financial
w w w w w w w w w w w w w w w ww w w w w
progress and make changes as appropriate.
w w w w w w w w w w w w
2. Distinguish w w among w w financial w w success, w w financial w w security, w w and w w financial w w happiness.
Answer: Financial success w is the achievement of financial aspirations that
w w w w w w w w w w w w w w w w w
are desired, planned,
w w w w or attempted. Success is defined
ww by the individual w w w w w w w w w w w w w w w w
w orw family that
w w seeks it. w w w w w w
Financial success may be definedw w as being able to live according to
w w w w w w w w w w w w w w w w w w w w
w one’s
w standard ofy living. Financial
w w security is that comfortable feeling w w ww w w w w w w w w w w w w
that your financial resources will be adequate
w w w w w w to fulfill any needs w w w w w w ww w w w w w w w w
w you
w have as w well w as your wants. Financialw happiness
w is the w w w w w w w w w w w w w w ww
w experience
w you have when you are satisfied
w w with money matters. w w w w w w w w w w w w w w w w
w People
w who are happy about
w their
w finances will see w a wspillover ww w w w w w w w w w w w w w w
w into
w positive feelings
w wabout life in general. w w w w w w w w ww
3. Summarize w w what w w you w w will w w accomplish w w studying w w personal w w finance.
Answer: Several things can be accomplished by studying personal finance.
w w w w w w w w w w w w w w w w w w
w Recognize how to
w manage unexpected and expected
w w financial events. ww w w w w w w w w w w w w
w Payw as little as
w possible
w in income taxes.
w Understand
w how to w w w w w w w w ww w w w w w w
w effectively comparison
w shop for vehicles and w homes. w Protect what we w w w w w w w w w w w w ww w w
own. Invest wisely. Accumulate and
w w w w protect the wealth that we may choose
w w w w w w w w w w w w w w w w w w w w
to spend during our non-working years (e.g., retirement) or donate.
w w w w w w w w w w w w w w w w w w w w
4. What w w are w w the w w building w w blocks w w to w w achieving w w financial w w success?
Answer: The building blocks for
w w achieving financial success include a
w w w w w w w w w w w w w w w w
foundation ofy regular
w w income that provides
w w the means to support
ww w w w w w w w w w w w w w w
w your
w lifestyle andw savew for desired goals in the future. The w w w w w w w w ww w w w w w w w w
w foundation supports a base of various banking
w w waccounts, insurance w w w w w w w w w w w w ww
protection,
w w and employee benefits. Then we can
w w establish goals, a w w w w w w w w w w w w w w w w
recordkeeping
ww system, a budget, and an emergency savings fund. We
w w w w w w w w w w w w w w w w w w
will also manage various expenses such as housing,
w w w w w w transportation, ww w w w w w w w w w w
insurance,
w w and the payment of taxes. We will also need to handle
w w w w w w w w w w ww w w w w w w w w w w
w credit, savings, and
w educational costs. Finally,
w w we invest in various w w w w w w w w w w w w w w ww
investment alternatives such as mutual funds, stocks, and bonds, often for
w w w w w w w w w w w w w w w w w w w w w w
w retirement.
w As a result of all these building
w wblocks, we are w w w w w w w w w w w w w w w w w w
w more
w apt to have a financially successful life.
w w w w w w w w ww w w w w
LO1.2 w w Understand w w how w w the w w economy w w affects w w your w w personal w w financial w w success.
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ww $1.236 ww
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ww ww ww ww ww ww ww ww ww
Material
SOLUTION MANUAL w
w
Personal Finance, 14th Edition
ww ww ww
w w By E. Thomas Garman, Chapter 1 - 17
ww ww ww ww ww ww ww
Downloaded by: Bookista |
ww ww ww Want to earn
ww ww
ww $1.236
ww
Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study
ww ww ww ww ww ww ww ww ww
Material
TABLE OF CONTENTS ww ww w w
Part I: FINANCIAL PLANNING.
ww w w w w
1. Understanding Personal Finance. ww ww
2. Career Planning. ww
3. Financial Statements, Goals, and Budgets.
ww ww ww ww
Part II: MONEY MANAGEMENT.
ww ww ww ww
4. Managing Income Taxes. ww ww
5. Managing Checking and Savings Accounts.
ww ww ww ww
6. Building and Maintaining Good Credit.
ww ww ww ww
7. Credit Cards and Consumer Loans.
ww ww w w ww
8. Vehicles and Other Majory Purchases.
ww ww w w ww
9. Obtaining Affordable Housing. ww ww
Part III: INCOME AND ASSET PROTECTION.
ww w w w w ww w w
10. Managing Property and Liability Risk.
ww ww ww w w
11. Planning for Health Care Expenses.
ww w w w w w w
12. Life Insurance Planning.
ww ww
Part IV: INVESTMENTS.
ww ww ww
13. Investment Fundamentals. ww
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ww ww
ww $1.236
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Material
14. Investing in Stocks and Bonds. w w w w w w w w
15. Mutual and Exchange-Traded Funds. ww ww ww
16. Real Estate and High-Risk Investments.
ww w w w w w w
17. Retirement and Estate Planning. ww ww w w
SolutionandAnswerGuide w w w
GARMAN/FOX, w w PERSONAL w w w w FINANCE w w w w 14E, w w CHAPTER w w w w 1: w w THINKING w w w w LIKE w w w w AY w w FINANCIAL
w wPLANNER
w w
TABLE OF CONTENTS
W W W W W
Answers w w to w w Chapter w w Concept w w Checks .............................................................................2
What w w Do w w You w w Recommend w w Now? ..................................................................................4
Let’s w w Talk w w About w w It ...............................................................................................................5
Do w w the w w Math............................................................................................................................6
Financial w w Planning w w Cases .........................................................................................................8
Extended w w Learning ................................................................................................................... 10
Downloaded by: Bookista | ww ww ww Want to earn
ww ww
ww $1.236ww
Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study ww ww ww ww ww ww ww ww ww
Material
ANSWERS TO CHAPTER CONCEPT CHECKS W W W W W W W W
LO1.1 w w Recognize w w the w w keys w w to w w achieving w w financial w w success.
1. Explain w w the w w five w w steps w w in w w the w w financial w w planning w w process.
Answer: There are five fundamental steps to the personal financial planning
w w w w w w w w w w w w w w w w w w w w
w wprocess:
(1) evaluate
w w your financial health to your education and career choice;
w w w w w w w w w w w w w w w w w w
(2) define your financial goals; (3) develop a plan of
w w w w w w action to achieve ww w w w w w w w w w w w w w w w w w w
w your
w goals; (4) implement spending and saving plans to monitor
w w w w w w ww w w w w w w w w w w
w and control progress toward your goals; and (5) review your financial
w w w w w w w w w w w w w w w ww w w w w
progress and make changes as appropriate.
w w w w w w w w w w w w
2. Distinguish w w among w w financial w w success, w w financial w w security, w w and w w financial w w happiness.
Answer: Financial success w is the achievement of financial aspirations that
w w w w w w w w w w w w w w w w w
are desired, planned,
w w w w or attempted. Success is defined
ww by the individual w w w w w w w w w w w w w w w w
w orw family that
w w seeks it. w w w w w w
Financial success may be definedw w as being able to live according to
w w w w w w w w w w w w w w w w w w w w
w one’s
w standard ofy living. Financial
w w security is that comfortable feeling w w ww w w w w w w w w w w w w
that your financial resources will be adequate
w w w w w w to fulfill any needs w w w w w w ww w w w w w w w w
w you
w have as w well w as your wants. Financialw happiness
w is the w w w w w w w w w w w w w w ww
w experience
w you have when you are satisfied
w w with money matters. w w w w w w w w w w w w w w w w
w People
w who are happy about
w their
w finances will see w a wspillover ww w w w w w w w w w w w w w w
w into
w positive feelings
w wabout life in general. w w w w w w w w ww
3. Summarize w w what w w you w w will w w accomplish w w studying w w personal w w finance.
Answer: Several things can be accomplished by studying personal finance.
w w w w w w w w w w w w w w w w w w
w Recognize how to
w manage unexpected and expected
w w financial events. ww w w w w w w w w w w w w
w Payw as little as
w possible
w in income taxes.
w Understand
w how to w w w w w w w w ww w w w w w w
w effectively comparison
w shop for vehicles and w homes. w Protect what we w w w w w w w w w w w w ww w w
own. Invest wisely. Accumulate and
w w w w protect the wealth that we may choose
w w w w w w w w w w w w w w w w w w w w
to spend during our non-working years (e.g., retirement) or donate.
w w w w w w w w w w w w w w w w w w w w
4. What w w are w w the w w building w w blocks w w to w w achieving w w financial w w success?
Answer: The building blocks for
w w achieving financial success include a
w w w w w w w w w w w w w w w w
foundation ofy regular
w w income that provides
w w the means to support
ww w w w w w w w w w w w w w w
w your
w lifestyle andw savew for desired goals in the future. The w w w w w w w w ww w w w w w w w w
w foundation supports a base of various banking
w w waccounts, insurance w w w w w w w w w w w w ww
protection,
w w and employee benefits. Then we can
w w establish goals, a w w w w w w w w w w w w w w w w
recordkeeping
ww system, a budget, and an emergency savings fund. We
w w w w w w w w w w w w w w w w w w
will also manage various expenses such as housing,
w w w w w w transportation, ww w w w w w w w w w w
insurance,
w w and the payment of taxes. We will also need to handle
w w w w w w w w w w ww w w w w w w w w w w
w credit, savings, and
w educational costs. Finally,
w w we invest in various w w w w w w w w w w w w w w ww
investment alternatives such as mutual funds, stocks, and bonds, often for
w w w w w w w w w w w w w w w w w w w w w w
w retirement.
w As a result of all these building
w wblocks, we are w w w w w w w w w w w w w w w w w w
w more
w apt to have a financially successful life.
w w w w w w w w ww w w w w
LO1.2 w w Understand w w how w w the w w economy w w affects w w your w w personal w w financial w w success.
Downloaded by: Bookista | ww ww ww Want to earn ww ww
ww $1.236 ww
Distribution of this document is illegal extra per year?
