MAA255 Lecture Notes - Lecture 1: Financial Plan, Financial Statement, Financial Planner
15 Apr 2019
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Document Summary
What is personal financial planning: the financial means to satisfy personal objectives. Starting point is identification of financial goals and relative time frames. All investors must have an understanding of risk and how this may impact on financial objectives. Useful to consider objectives in three time frames. Long: up to 40 or even more years. To be realistic a goal needs two components: specific or quantifiable, referenced to specified time frame. Enables people to set in place personal objectivise and arrange financial means to satisfy these objectivise. Involved in the life cycle theory of consumption and saving: life cycle theory provides a framework to meet short, medium and long term objectivise, while consumption is relatively smooth over person"s life cycle, lifetime income is quite uneven. Capital gains tax and fringe benefits tax (1985-86) Imputation credit on company dividends (1987) share market crash (1987) Wallis report deregulation of financial services (1997) Licensing regime for the provisions of financial services and products.
