Submitted by: Submitted by student29
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Category: Business and Industry
Date Submitted: 10/02/2016 01:56 PM
Chapter 1: Introduction
-Average household debt: 167% carrying more than when the US economy collapsed
3) Coming to class vs. working (opportunity cost)
* Price of a stock / mutual fund is lower = people will buy (fund manager)
* Mutual fund advisor = want the price to go up
7) Human capital – on midterm
-More money between the ages of 45-59 because of your experience/network
-67 is the new retirement age in Canada
-74: make you start to take out your RRSP’s
8) Establish a credit rating
-Institutions will trust you with their money
-Higher credit rating – lower cost of borrowing
9) Pay-yourself first: save money before you spend it – automatic saving with your bank (preauthorized payment agreement)
-Start with mutual fund + ETF
10) RESP = registered education savings plan – no immediate tax benefit (putting money in, growing tax free) the children go to cash it out, it’s taxed at the lower bracket as the student takes it out (taxed in the hand of the beneficiary)
-RRSP - $100,000/year, put 10,000 into the RRSP (only taxed on 90,000)
-Pension plan at work
11) Maximum between all government programs - $1491 a month
12) Tax free saving account – went from 10,500 to 5,000 (from Trudeau’s government)
-1M investing, now only 500,000 investing = can’t keep up with inflation and the cost of living
14) Emergency fund – what you should have (3-6 months) ** exam question
15) how much credit do you need to support spending
-Average of 19.5% of credit charge
-Paying 20% go to student account and get 10% charged
16) Long vs. short amortization
18) Should you protect against all risk? No. Protect against most costly risks
-Breadwinner: insurance plan that takes care of your spouse/children
20) Retirement – forecasting your needs
22) Developing the Financial plan – remember steps for multiple
-Which of the following are part of the financial plan
23) Setting achievable but smart goals (might hit or not...