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Personal Finance & Savings

Personal finance refers to the financial management of which an individual or a family is required to make to obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future life events. When planning personal finances, the individual needs to consider the suitability to his or her needs of a range of banking products, investments and insurances.

The key component of personal finance is financial planning. Financial planning has 5 steps, assessment, goal setting, creating a plan, execution and monitoring and reassessment. Some examples of typical goals most adults have are paying off credit cards and/or student loan debt, investing for retirement, investing for college costs for children and planning for passing on their property to their heirs. There are six key areas of personal financial planning. These areas include financial position, adequate protection, tax planning, investment and accumulation goals, retirement planning and estate planning.

Saving is income not spent or deferred consumption. Methods of saving include putting money aside in a bank or pension plan. Saving can also include reducing expenditures. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, where risk is higher. 

From an economic perspective, it is now commonly assumed that most rational individuals follow the life-cycle hypothesis of consumption and will attempt to smooth consumption given their lifetime income and adjust to shocks via changes in their savings behaviour rather than their consumption behaviour. 

Retirement plans and employee benefits

The Edwards Case: RETIREMENT AND EMPLOYEE BENEFITS See attachment. Chapter questions from The Case Approach to Financial Planning by John Grable. ISBN: 978-1-936362-99-8

Retirement planning..

With two children in college, the Turner once again find their life situation changing. Compared to five years ago, their total assets have declined due to college expenses. The Turner's oldest child will graduate next year, but the youngest will enter college in a couple of years. The drain on the family's finances will continu

Finance Payouts with various schemes--insurance options

1. Most home insurance policies cover jewelry for $1960 and silverware for $2540 unless items are covered with additional insurance. If $4280 worth of jewelry and $4450 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance? (Round the answer to the nearest whole number. Do no

The Fair Credit Act and Consumer Protection

Your credit rating is very important in many areas of your life. Your score determines the interest rate you would get on loans, the cost of your insurance, and could affect future employment. You have rights as a consumer when it comes to billing practices. The Federal Trade Commission provides information that will help you to

Managerial Economics

A University spent $1.8 million to install solar panels atop a parking garage. The panels will have a capacity of 500kw, have a life expectancy of 20 years and suppose the discount rate is 10%. a. If electricity can be purchased for the cost of $0,10 per kwh, how many hours per year will the solar panels have to operate to make

Rate Obtained From Desired Profit

Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000 Desired profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiolo

Reducing risk through insurance

Corporations can purchase insurance as a means of reducing their risks. What are the primary limitations on the extent to which insurance can reduce the risks faced by a corporation?

Maximizing Revenue and Advertising Expenditure

McBurger hires you as a consultant for advice on its best strategy. You estimate monthly demand for its burgers to be: Qd = 26,000 - 10,000P + 4,000Pc -.8Y +0.5A Where the independent variables are respectively: P, price of McBurger's burgers, PC, price of competitors' burgers, Y, per capita income, and A, McBurger's advertisi

Case Study - Property Tax and Habitat for Humanity

Review Case 10-2: Explain how you would quantify the amount or percentage of property tax revenue that comes from owners of Habitat for Humanity houses in a particular municipality. Provide two (2) arguments in favor of giving a property tax break to owners of Habitat for Humanity houses. Provide two (2) argumen

Fill in all of the missing information in the given table.

Sci-fi is originally all equity financed (unlevered). All earnings are paid out as dividends, and the growth rate is zero. The firm decides to issue $8,000,000 in debt at 6% and to use the proceeds to repurchase stock. The capital structure change is permanent (so debt is perpetual). Fill in all of the missing information in

Controlling Fixed and Variable Costs

When looking at firms, you will find that they have to evaluate both fixed and variable costs. If you look at a restaurant, you will find that they have both these types of costs. What are examples of these costs and how can a restaurant control these costs during tough economic times?

Fiscal Policy Tools

1. In the tax cut example on pages 236-37 (see the attached file), ( a ) By how much does consumer saving increase initially? ( b ) How large is the initial spending injection? 2. Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate deman

Major Tools for Directing Monetary Policy

Identify or list the four major tools used to control monetary policy. Describe how changes in the Fed's policy tools leads to expansionary and restrictive or contractionary monetary policies.

Selective Property Taxes

What are selective property taxes? Discuss the advantages and disadvantages of property tax legislation as it is currently applied in the U.S. to businesses and governments.

Access to Insurance vs. Access to Care

What is the contrast between access to insurance versus access to care in relation to the Affordable Care Act (ACA), federal reform and its unanticipated consequences?

Determine the equivalent uniform annual cost (EUAC) in each case.

1. An oil refinery must now be sending its waste liquids through a costly treatment process before discharging them into a nearby stream. The engineering department estimates costs at $30,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $3,000 each yea

Social Security Taxes

Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security taxes paid into the Social Security trust fund will also be 1%. Why can workers

Developing an NPV profile graph

Can you create an NPV Profile graph based on the Excel spreadsheet analysis information provided? ** Please see the attached file for the Excel formatted problem description ** Inputs ATSV old @ t=0 305,000 ATSV formula = Market salvage value-(Market salvage value-Book value)*tax rate Equipment 2,000,000

Ramifications of Teacher's Strike

I need a 1 page write with one reference discussing your opinion as to whether or not the Chicago teachers union should get their demands that they forwarded for resolution of the strike. Give implications, in your estimation, of what you think good or bad would be the ramifications both ways: teachers get their way and admin

Budget Constraint, Substitutes or Complements, and an Indifference Map

For each case below: 1) State if the goods in the bundles are "perfect substitutes," "perfect complements," or "imperfect substitutes" and 2) Draw 3 curves that could represent an indifference map for a consumer. Cases: (A) The bundles includes left shoes and right shoes (B) The bundles includes 8 ounce frozen orange

Budget Constraint - Indifference Curve of Imperfect Substitutes

Please help with the following problems. Provide diagrams and step by step calculations. Josh has $100 available for school supplies, S, and food, F, from Meijer (Local general merchandise store). The price of each unit of school supplies is $1 and each unit of food is $1. Josh spends $10 on 10 units of school supplies and

Homeless Rate of U.S. Military Veterans

I have no experience in the economic area. I'm in the military and need assistance in addressing these three questions. I'm putting together information and suggestions that can benefit service members. Please answer these three questions in chronological order: 1) Why is the military veteran homeless rate is on the rise afte

Budget cycle as it depends on strong and week economies

What are the differences in the budget cycle in good economic times versus bad economic times? What economic changes do you think influence the transition? How do these differences in the cycle affect the preparation, execution, and evaluation of the budget?