ADMS 3530 Study Guide - Quiz Guide: Life Insurance, Power Financial, Income Splitting
26 Apr 2017
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Financial planning process = series of decisions on how much money you need at some future time to meet your goals. How to choose an advisor = must be technically competent, honest, thoroughly committed to your personal financial needs, does not make extravagant claims & has your long run interests in mind. Keeping up to date = environment of personal finance changes rapidly (structural factors, tax rules, financial instruments). Must concentrate on fundamental principles (doesn"t change quickly & gives a long term basis for fp). Consumer spending, (un)employment rates, expected future tax rates & income brackets are all factors. Know what you need = understand yourself & the financial circumstances you are in. Be aware of the surrounding environment & your nation"s economy (rate changes could affect your income, budgeting, planning). Be rational, don"t bite off more than you can chew (know your limits & restrictions). Objectives of personal financial management = manage finances of an individual & their family.
