Fins2643 Lec 1

FINS2643: Course Overview

Paul Karehnke p.karehnke@unsw.edu.au

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Financial Planning

• Financial planning is about making personal financial decisions to ensure that we have money to do what we want to do in life! 

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Sounds simple?

• It’s not rocket science. • It requires

– Common sense – Emotional awareness – Communication and empathy – Up-to-date knowledge of the regulations, theories and markets – Clear economic reasoning – Organization skills and execution effort

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Financial decisions that people make

• Consumption versus Savings

– Buy that car, iphone, holiday… – I’ll put $100 per week into a long term saving account. – I’ll add 6% to my superannuation?

• Financing

– – – – HECS or paying outright? Pay by credit cards or from loan? Cash, margin account, CFD, or home loan? How do I pay them off? Are the expenses tax deductible?

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• Investment

– Should I invest my savings in term deposit? – Which stock should I add to my portfolio? Is it the right time to buy? – How do I know if this managed fund is suitable for me?

• Asset Protection

– Should I buy life insurance? Car insurance? How much? – How would family breakdown affect my finance and wealth? – What will happen to my wealth if I die?

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• Retirement decisions

– When will I retire? Can I afford to retire at 45? – Will I have enough money? What will I be doing in retirement? How much money do I need? – What are other funding method and how much age pension will I get? – How should I invest the money upon retirement? – How do age pension interact with my assets and income?

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What is this course about?

• Accumulating financial planning knowledge. • Understanding people’s real financial goals and constraints. • Applying knowledge to deploy resources to achieve the best financial outcome. • Oral and written communication skills. • A deeper understanding of the industrial organization of the wealth management industry. • Managing your time well.

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