Personal Finanacial Planning and Retirement

The purpose of personal financial plan is to what...?

• create your best possible financial future.

• to see how little you have compared to other people and then use that as inspiration to do better

• help you avoid common financial pitfalls and accomplish your goals

• All of the above

Do most people plan for retirement?

• yes

• no

–Nation’s retirement program, helps provide retirement income for elderly and pays disability benefits

• State Tax
• Social Security
• 401K
• Federal Withholding

The ability to easily convert financial assets into cash

• Solvency

• Liquidity

• Accessibility

• None of the above

What is the first step in building a financial portfolio for your retirement?

• Estimate your income and expenses

• Determine your current financial situation

• Decide what you want your job to be in the future

• create a financial excel sheet

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities

• Balance Sheet

• Cash Flow Statement

• Budget

• Financial plan

Types of financial goals

• short-term goals: within next year

• Long-term goals: more than seven years

• None of the above

Which is the best definition of personal financial planning?

• spending, saving, and investing money to enjoy life and achieve financial security.

• Listing ways to achieve your short-term and long-term financial goals.

• thinking about your attitudes toward money.

• using available sources of financial information.

Which term refers to things you want to accomplish?

• budgets

• risks

• expenses

• goals

Which term refers to a plan for using your income in a way that best meets your wants and needs?

• opportunity cost

• a variable expense

• a budget

• a budget variance