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Bonus D - Managing Personal Finances
4. WHOLE LIFE INSURANCE combines pure in-
surance and savings.
a. It places part of the premium in savings and
the other part toward pure insurance.
6. An ANNUITY is a contract to make regular
a. With an annuity you are guaranteed to have
an income until you die.
b. FIXED ANNUITIES are investments that
pay the policyholder a specified interest
rate.
Bonus D - Managing Personal Finances
PPT D-24
Purchasing Annuities
(See complete PowerPoint slide notes on page D.46)
lecture link D-6
SOCIAL SECURITY AND YOUR
RETIREMENT
Back in the 1980s there were five active workers paying
Social Security taxes for each retiree. Today it’s 3.2 workers
and dropping. (See the complete lecture link on page D.57 of
this manual.)
Bonus D - Managing Personal Finances
B. HEALTH INSURANCE
1. Individuals need to consider protecting them-
selves from losses due to health problems.
a. Many have health insurance coverage
3. DISABILITY INSURANCE is insurance that
C. HOMEOWNER’S OR RENTER’S INSURANCE
1. APARTMENT INSURANCE or HOMEOWN-
ER’S INSURANCE covers loss of your posses-
sions.
2. It is best to get guaranteed REPLACEMENT
Bonus D - Managing Personal Finances
PPT D-25
Other Insurance Protection
(See complete PowerPoint slide notes on page D.46.)
PPT D-26
Who Pays for Health Care?
(See complete PowerPoint slide notes on page D.46.)
PPT D-27
Where Health Care Money Goes
(See complete PowerPoint slide notes on page D.47.)
PPT D-28
What to Know about Health
Savings Accounts
(See complete PowerPoint slide notes on page D.47.)
Bonus D - Managing Personal Finances
new.
A. Successful financial planning requires long-range
planning, including retirement.
B. SOCIAL SECURITY
Bonus D - Managing Personal Finances
PPT D-29
Social Security
(See complete PowerPoint slide notes on page D.48.)
Bonus D - Managing Personal Finances
FUNDS NOW.
C. INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)
1. An INDIVIDUAL RETIREMENT ACCOUNT
(IRA) is a tax-deferred investment plan that en-
ables you (and your spouse, if you are married)
to save part of your income for retirement.
a. Saving $5,000 in an IRA at 10% interest will
yield $1.5 million in 35 years.
b. The actual rate of return depends on the
type of investments you choose and can
Bonus D - Managing Personal Finances
PPT D-30
Individual Retirement Accounts
(See complete PowerPoint slide notes on page D.48.)
Bonus D - Managing Personal Finances
vary widely over time.
4. A ROTH IRA is an IRA where you don’t get up-
front deductions on your taxes as you would
workers.
insurance companies all have IRA savings
plans.
b. If you can accept more risk, put your IRA
D-30
D. SIMPLE IRAs
1. Companies with 100 or fewer employees can
provide their workers with a SIMPLE IRA.
2. 401(k) plans have three BENEFITS:
a. The money you put in REDUCES YOUR
PRESENT TAXABLE INCOME.
Bonus D - Managing Personal Finances
PPT D-31
401(k) Plans
(See complete PowerPoint slide notes on page D.49.)
PPT D-32
Benefits of 401(k) Plans
(See complete PowerPoint slide notes on page D.49.)
Bonus D - Managing Personal Finances
F. KEOGH PLANS
1. KEOGH PLANS are retirement plans for small-
1. Many people claim to be financial planners; find
one who is a CERTIFIED FINANCIAL PLAN-
NER (CFP).
2. ONE-STOP FINANCIAL CENTERS, or finan-
Bonus D - Managing Personal Finances
PPT D-33
Keogh Plans
(See complete PowerPoint slide notes on page D.49.)
lecture link D-7
THE TROUBLE WITH SUING
YOUR BROKER
The recent market crash left investors feeling misled by
their most trusted financial advisors. Many want to seek legal
action, but that might not be a possibility. (See the complete
lecture link on page D.59 in this manual.)
3. Most financial planners begin with LIFE INSUR-
H. ESTATE PLANNING
1. The first step is to SELECT A GUARDIAN for
your minor children, someone with a genuine
concern for your children.
the power to take over your finances if you
become incapacitated.
b. A DURABLE POWER OF ATTORNEY FOR
Bonus D - Managing Personal Finances
PPT D-34
Planning for Those Who Will Inherit
(See complete PowerPoint slide notes on page D.50.)
Bonus D - Managing Personal Finances
progress
assessment
(Text page D-16)
PPT D-35
Progress Assessment
(See complete PowerPoint slide notes on page D.50.)
Bonus D - Managing Personal Finances
D-38
PowerPoint slide notes
PPT D-1
Chapter Title
PPT D-2
Learning Goals
PPT D-3
Nathan Myhrvold
Bonus D - Managing Personal Finances
D-39
Bonus D - Managing Personal Finances
D-40
PPT D-7
Managing Your Household Budget
PPT D-8
Possible Cost-Saving Choices
Living frugally is not about doing without but rather
making wise choices.
PPT D-9
How Money Grows
The time value of money and compound interest are
the saver’s best friend.
