Time Value Flashcards
(25 cards)
Shortcut for inflation adjustment on calculator
Inflation rate input interest rate gold key %
50000 in today’s dollars
Inflate
Net present value
Inflows-and outflows =0
Inputting CFO
0 cfj 3 shift. Nj
12 pay 240 pv7.6. Int. 30yrgpldn
1 input 12 gold amort =
No of months. 24 second year
Financial planning process
EGADIM Establish define relationship Gathering data including goals Analyzing evaluate clients financial status Develop present go process Implement recommendation Monitor recommendations
Quantative. Step 2
Names and numbers
Personal financial statement
Statement of financial position
StAtement of financial position
Cash cash equity
Investment assets
Personal use assets
Liabilities
Debt
Net worth.
Assets valued at fmv
Debt use payoff
Debt - assets= net worth
Cash flow statement.
Like business income statement
Income and outflows Inflows - outflows Outflows. Fixed. Car payment Variable - food electricity
Net surplus/deficit
Emergency fund
3-6 mos of expenses
Espenses-taxes-savings investments
Debt management rules of thumb
All debt. Gross 36%
Monthly housing. Piti. 28%
Principal interest taxes insurance hoaf
Consumer debt. 20% net
Leases
Closed end lease. Fixed rate higher payments. No end expense
Open end lease. Finance or equity lease
Car lease turn in car don’t know final cost may have end expense
Form of financing.
Minor trusts
Crummy trust. 5/5
2503c minor trust. 21. 13000
2503b. Current income
Lifetime learning
- 52-62. 104-124
American opportunity tax credit
100% up to 20000
25% on next 2000
Can be used 4 yrs of school
Undergrads
Pell Supplemental Teach Plus Perkins Stafford Grad students can get only teach and loans
Investment advisors
Abc. Advice business compensation
Yes to all three registered u must n
Investment advisor exceptions
Not considered an advisor
Teacher gov
Exemptions
Clients residents of principal state of business
Unlisted securities
Fewer than 15 clients
Churches
Ethics
Icing on the cake forced the cat to puke and die
Integrity objectivity competence fairness confidentially professionalism diligence
Rules of conduct
Define the relationship Information disclosed Prospective client and property Obligations to prospective clients Obligations to employers Obligation to CFO board
Truth in lending
Credit card balances
Fair credit reporting
Report on credit report
