16.4 your financial future Flashcards Preview

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Flashcards in 16.4 your financial future Deck (34):
1

a report atht summarizes your current financial condition, acknowledges your financial needs, and sets a direction for your future financial activities

financial plan

2

What are some ways you can ensure you have money after retiring?

  • social security
  • pensions
  • individual retirement accounts
  • annuities

3

financial goals can be ___ term or ____ term

financial goals can be short term or long term

4

What are some types of retirement accounts?

  • IRA
  • 401(k)
  • Keogh
  • SIMPLE
  • SEP

5

Each life stage has _____ matters

each life stage has financial matters

6

provides pensions to retired workers and their families

social security

  • these benefits are funded by payroll taxes
  • the taxes are deducted from employees' paychecks

7

insurance is available that will provide an income to those who fear the two most common causes of loss of income:

 

_____ and ______

disability and unemployment insurance

8

a financial plan must be _____

flexible

9

the only way to have money in the ____ is to spend less than you receive

the only way to have money in the future is to spend less than you receive

10

the overuse of ____ and other poor spending  habits are the basis for long term financial disaster

the overuse of credit and other poor spending habits are the basis for long term financial disaster

11

A financial inventory will usually include the creation of a personal ____ and _____ statement

a financial inventory will usually include the creation of a personal balance sheet and cash flow statement

12

insurance coverage that provides cash payments for a limited time to people who are out of work for a reason other than illness; offered by most states

unemployment insurance

13

____ term financial goals are often more complex and involve a longer period

long term financial goals are often more complex and involve a longer period

14

a financial planner should have studied and passed exams on topics like...

  • investments
  • insurance
  • taxes
  • real estate
  • estate planning

15

What are the steps in the financial planning process?

  1. analyze your current financial condition
  2. develop financial goals that are responsive to your vision
  3. create your financial plan
  4. implement the plan
  5. revise your financial plan

16

your financial plan should be ____ and adjusted on a regular basis to produce the outcomes you desire

your financial plan should be evaluated and adjusted on a regular basis to produce the outcomes you desire

17

a tax sheltered retirement plan in whic people can annually invest earnings up to a certain amount

IRA

Individual Retirement Account

  • are tax deductible

18

Once people retire, their salaries stop, but they continue to ____ money to cover living expenses

once people retire, their salaries stop, but they continue to need money to cover living expenses

19

involves the accumulation and management of property during one's lifetime and the distribution of one's property at death

estate planning

20

your budget and spending activities should also involve _____, like religious donations or contributions to local and global organizations that provide food, housing and other necessities to people in need (charities)

your budget and spending activities should also involve sharing

21

changes in your _____ will require changes in spending and saving habits

changes in your goals will requre changes in spending and saving habits

22

a financial inventory is a careful assessment of your ____

a financial inventory is a careful assessment of your finances

23

planners who can help you create a financial plan

financial planners

24

a series of regular payments made to a retired worker under an organized plan

pension

25

to keep your financial inventory and other records in order, you should create a personal financial ____ system

to keep your financial inventory and other records in order, you should create a personal financial filing system

26

What are some advantages of financial planning?

  • your financial uncertainties will be reduced
  • you will gain more control of your financial activities
  • your family and household members will know more about your financial situation in case they need to assume control of your finances
  • earning, spending, protecting and saving your resources will be more systematic

27

during your life you build your ____ through savings, investments and insurance

during your life you build your estate through savings, investments and insurance

28

every financial decision you make will affect both ___ spending and long term financial goals

every financial decision you make will affect both current spending and long term financial goals

29

means the investment earnings will be taxed later, after retirement

tax deferred

30

once you have an understanding of changes in your financial or personal situation, you should consider ____ in your financial goals

once you have an understanding of changes in your financial or personal situation, you should consider changes in your financial goals

31

includes evaluating one's financial position, setting financial goals, and guilding activities and resources toward reaching those goals

financial planning

32

implementing your financial plan may involve ____ actions

implementing your financial plan may involve many actions

33

replaces income that is lost when you cannot work because of an illness or injury

disability income insurance

  • most disability insurance will pay 60-70% of your salary while you are disabled
  • before benefits begin there is normally a waiting period of 1 week to 90 days after being disabled

34

an amount of money an insurance company pays to a person who has previously deposited money with the company

annuity

  • is an investment plan for retirement income
  • you pay the insurance company a certain amount of money either in a lump sum or a series of payments
  • in return, the company agrees to pay you a regular income beginning at a certain age and continuing for life or for a specific number of years