BUA234 Personal Financial Planning Home Page



Syllabus, Spring, 2006


Chuck and Betsy Cooper


Financial Plan: Spring 2006 Project:  Bill and Patti Warner


Financial Planning Project Assignment Example: 2005 NOT an assignment for you)


Help with Excel


SOHO (Small Office Home Office) America - finance


How long will you live?

    We will be able to live to 1,000

    How long shall humans live? . . .



    Manpower research






1: Overview of Personal Finance/Financial Plan                                                               

2: Budgeting:  Planning with Personal Financial Statements                                        

3: Time Value

4: Taxes:  Using Tax Concepts for Planning

5: Liquidity, Banking, and Interest Rates 

6: Managing Your Credit

7: Loans

8: Home Purchase and Financing

9:  Life Insurance   

10:  Other insurance topics:  Auto, Homeowner's, and Health:  .                                                       

11:  Investing                                    

12:  Retirement Planning

13.  Estate Planning

14.  Love and Money                                                   

15. Charity/Giving

16.  Education


1:  Overview of a Personal Finance/Financial Plan


    Secrets of the the Millionaire Mind (PowerPoint)   


    Careers in Finance- Facts and Trends


    Careers in Finance- Skills Needed


    Reasons People Fail Financially

        The cost of procrastination (Raymond James)

        Pick your excuse, every has one


    Does Money Buy Happiness?

    Do People with money tend to be happier?  12-3-05 WSJ


    College Students, problems with money-- Sept 2005 Money Magazine


    How bad financial behavior can really cost you- Sept 2005 Money Magazine


    Proven Principles for Financial Success


    Components of a Financial Plan

        1.  Big Picture (Personal Profile, Financial Mission Statement, Goals) 

        2.  Budgeting and Tax Planning

        3.  Managing your liquidity

        4.  Financing your large purchases (e.g., your home)

        5.  Investing your money

        6.  Protecting your wealth (insurance, retirement, and estate planning)


Personal and Financial Profile

        Vanguard's Personal Profile Questionnaire click 1) print the questionnaire and 2) print and mail

        Money Type - August 2005 Money Magazine


        Financial Mission Statement


        Goal Setting

        Goals Spreadsheet (Excel)



2:  Budgeting:  Planning with Personal Financial Statements


    Budget (Excel Template)


    Personal Balance Sheet (Excel Template)


    Money:  Budgeting 101


    iVillage:  Budgeting Quizzes


    Compare Your Budget

    Bankrate's Budgeting 101

    MS Financial Savvy.com

    Consumer Expenditures in 2003:  Department of Labor   


    Additional Budgeting Websites

    Visa: Budgeting Advice

    About:  Budgeting Advice  

    Building Wealth:  Federal Reserve Bank of Dallas

    Wife.og:  Budgeting Advice

    Tomorrow's Money:  Budgeting Advice   


    Other Helpful Budgeting Information   

    Consumer Price Index - Average Price Data

    Why young families are always broke (MSN)

    Raymond James:  Budget Worksheet

    Fidelity:  Budget Worksheet


3:  Applying Time Value (of Money) Concepts


     Amortization Schedule (Excel)


    Amortization Schedule Calculator (Bankrate.com)


    Amortization Schedule (java)


    Time Value Practice Problems

        Time Value Practice Problems Solutions


    One Time (lump sum) Investment (Excel)


    Monthly Savings (Excel)


    Saving Early (Excel)


    Time Value Calculators:  WoodForest National Bank



4:  Taxes: Using Tax Concepts for Planning


Note:  We need to understand taxes to develop an accurate forecast of cash flows.  The purpose is not to turn you into a tax accountant, however, the more you understand taxes, the more accurate your cash flow estimation will be.


    1.  Social Security-- How much do you pay?

        Go to Social Security Administration, click Taxes and Social Security and find out the social security tax rates.


    2.  Estimating Taxes (the primary purpose of this chapter)

        Forms we will use to estimate Federal Income Taxes


        1040 ES 2006


        1040 2005


        Schedule A 2005


        Form W-4 2006


        Capital Gains Taxes


        Definition of Capital Gain

        Capital Gains - BankRate.com

        Capital Gains Taxes - Yahoo

        Capital Gain Calculator


       Useful Tax Websites


        IRS website


        H&R Block - Tax Information


        H&R Block Tax Rates



            Go to State Income Tax Information to help estimate North Carolina Taxes


Ted and Jane Turner Practice Exercise

    Ted and Jane Solutions (Excel)


5:  Liquidity, Banking, and Interest Rates


What factors determine the dollar amount of liquid funds you should set aside?  What are some alternatives for emergency funds? 

BankRate.com: Deposits



Online Banks

EverBank Online (savings instruments in foreign-currency denominations; FDIC insured; however, there is currency risk)

AmericanBank Online


Bank of Internet USA


    Short Term Investment Choices 

    1.  Checking Account (most cases: preferably with overdraft protection): doesn't pay interest

    2.  Now Account:  pays interest

    3.  Money Market Deposit Account (MMDA): limited check writing ability

    4.  Savings account:  no check writing

    5.  Certificate of Deposit   

            Bank-CD Rate Scanner

    6.  Bureau of the Public Debt:  US Department of Treasury

            Treasury securities: sold at a discount (T-Bills:  maturity one year or less)

            The Basics of Treasury Securities

            TreasuryDirect Purchase treasury securities without a broker

    7.  Money Market Fund (Investopedia Definition)

            IMoneyNet.com-- provides money-market fund yields

           Example Money Market Fund:   Vanguard Money Market Fund


Considerations for opening an account

    1.  Relationships and banking

    2.  Location

    3.  Psychology (if your money isn't in your town, are you nervous)

    4.  Government secured vs. Close to Risk Free

    5.  Fees, interest rates, and maturity dates

    6.  Minimum amount


Federal Reserve Bank of Chicago:  The ABCs of Figuring Interest (Advanced)


 Managing Your Credit


SmartMoney:  Debt Management

Yahoo:  Credit Center

LendingTree:  Credit Information

Federal Reserve- Philadelphia- establishing, using, and protecting credit


The Credit Score

Credit Score:  What do the numbers mean? (Lendingtree)

Bankrate.com-- estimating your credit score


Interested in checking your credit? 

Free Credit Report-- Federal Trade Commission's link


AnnualCreditReport -- Starting in Sept. 2005 for NC, you can obtain a free credit report once a year.  You can make a request of each of the three primary credit agencies:  Equifax, TransUnion, and Experian.  Ask for one report from a different agency every four months.


Choose the Right Credit Card

    To Find a Credit Card







Credit Report Companies

1.  Experian

2.  Transunion

3.  Equifax

4.  FairIsaac:  Most popular credit score was created by Fair Isaac Corporation-- the FICO credit score


Rule #1—Pay off your credit card debt each month; use your credit card for convenience only.  If you cannot follow rule #1, consider cutting up your  credit cards or leaving your credit cards at home and use them only for emergencies and/or travel.

Having trouble with your credit/budget?  For a variety of information, go to

Consumer Credit Counseling Service of San Franscisco 

Nolo Legal Information:  Debt and Bankruptcy


Your Rights as a Credit Holder and other Credit Information

Federal Trade Commission's website on credit

Federal Citizen Information Center:  Fair Credit Reporting


Opting out of receiving preapproved credit offer-- To get off the credit bureaus' marketing lists-- 1-888-567-8688


Identity Theft

Identity Theft Resource Center

Privacy Rights Clearinghouse







    Purchasing a Car


    NADA Guide


    New Car Test Drive.com



    Kelley Blue Book

    Yahoo- Auto Loan Center




    eBay Motors



    Auto Financing and Purchasing (Excel)


    Vehicles:  Lease vs. Buy


    O% vs. Cash Up Front


    Going under water with a car (Excel)


    A Nurse buys a car.




 Home Purchase and Financing 


    Home Buying Questions (Word)


    The Mortgage Professor   

    SmartMoney:  Real Estate

    Fannie Mae Foundation:  Home Buying Guide  






    Quicken Loans

    Home:  When selling, your capital gain is tax free up to $250,000 ($500,000 for joint filers) on the sale of a primary residence as long as you have owned and lived in the house at least two years.





  Motley Fool:  Closing Costs



Valuation of a Home




    Homegain.com - recent sales for free

    Valuing a home using square footage of a home-- quick and dirty (Excel)





1.  Rent vs. Buy


2.  How much can you afford? 


    How Much House Can You Afford (bankrate.com)

    It is not what you are approved for but rather what your budget can handle.

    About.com:  The debt ratios 

    CNN/Money:  How Much House Can You Afford


Financing a Home


3.  15 or 30 Year Mortgage


4.  Tradeoff:  Points or a Higher Interest Rate


5.  Fixed vs. Adjustable Rate Mortgage




PMI: Private Mortgage Insurance (MSN)


Refinancing-- Two Websites

    Refinancing (bankrate.com for rates, etc.)-- go to bankrate.com; current situation-- 30 year mortgage; original mortgage $100,000; 7.5% rate; 48 payments made-- should you refinance?

    Refinancing Calculator (from bankrate.com)




 Life Insurance


Insurance Questions (Word)


Life and Health Insurance Foundation for Education

Life and Health Insurance Foundation for Education- How much do you need?


4insurance.com: Life

Yahoo Life Insurance

Common Life Insurance Questions (the Beehive)

Insurance Information Institute


Play the longevity game-- Northwestern Mutual Life


Obtaining Life Insurance (other insurance quotes are also available) Quotes: 




    Quicken or insuremarket.com




Types of Life Insurance


How Much Life Insurance do you need?


Settlement Options on a  Life Insurance Policy


Example:  Recommendation of Life Insurance Amount from an Agent


Example:  Which policy should you choose?



 Other Insurance Topics:  Auto, Homeowner's and Health




Insurance Finder


Insurance Information Institute:  Credit history and insurance


GEICO:  Insurance Terminology


North Carolina Department of Insurance

    includes consumer complaints


How Risky is Your Car (MSN)


Auto Insurance Questions


4insurance.com: Auto


Moneycentral's Auto Insurance Webpage


Moneycentral's Auto Insurance Question and Answer Webpage


Moneycentral- 10 cheapest cars to insure


Yahoo's Auto Insurance website



Rating Insurance Companies--  Without paying a fee, you may not obtain rating information of companies; however, the websites may inform you on what the ratings mean.

    A.M. Best

    Standard & Poor's

    Moody's Investors Service


4insurance.com: Homeowner's

Yahoo's Homeowner's Insurance website


4insurance.com:  Health


Insurance Information Institute


4insurance.com:  Disability


MoneyCentral:  Insurance Most People Can Do Without




High Point University has a course, BUA334, Investment Analysis that covers this information in detail.  Therefore, the depth of this section will be minimal.  At a minimum, enough information will be covered so you can complete your plan.


Mutual Funds and ETFs


    Mutual Funds and ETF Worksheet (word)


    Morningstar - Mutual Funds


    Motley Fool Mutual Fund Center


    Vanguard Mutual Funds

        Mutual Funds, an overview

        narrowing your choices

ETF research

www.xtf.com -- click on research tools and resources

www.morningstar.com -- quarterly updates of most overvalued and undervalued ETFs

www.sectorspdr.com -- Find individual ETFs and click on research

www.nasd.com -- check out ETF expenses

www.indexuniverse.com -- to srot EFTs by the indexes they track



Asset Allocation


    SmartMoney Asset Allocator


    Asset-Analysis.com click into "Estimate your optimal asset allocation based on your risk profile".




Real Estate


    Schedule E


    Publication 527


    Rental Real Estate Example (Excel)


Investing and Income Taxes


        Investments and Income Taxes Worksheet (Word)


        Marginal Tax Rate:  The tax rate on the next $1 of earnings. 

            Critical to understand for investment decisions


        Yahoo site on Capital Gains-- covers LT and ST Gains


        Municipal Bonds - Yahoo


        Dividends and Taxes Motley Fool



 12:  Retirement Planning


Retirement Planning Worksheet (word)


About:  Retirement Planning

SmartMoney: Retirement

The Motley Fool: Retirement



Social Security

Social Security Benefits-- See top 10 requested Services for Social Security Online


IRS's website


    IRAs-  Pub 590 common questions (IRS website)

    Roth IRA vs. Traditional IRA- Which is better?  Excel

    FinanCenter - IRAs will help guide you with many of your IRA decisions


Calculating your Retirement Needs


Estimating Your Net Worth for Retirement/Estimating Your Future Retirement Needs (Excel)


        Mortality Table


        Social Security Retirement Website Benefits


A Better Way to Size up Your Nest Egg - January 22, 2001 BusinessWeek

        Why we need to be aware of averages-- the relevancy of Monte Carlo Excel



    Annuity Buyer's Guide, Money, November, 2002



Unconventional Wisdom:  Can you contribute too much to a 401k or other retirement account?  Excel


Retire on Your Terms


 13:  Estate Planning


Estate Planning Worksheet (Word)


Advance Health Care Directive Registry, State of North Carolina




Nolo.com:  Will and Estate Planning


Basic Information about Estate Planning


US Living Living Will Registry


Wake Forest University Baptist Medical Center, NC Guide


Five Wishes is a document that helps you express how you want to be treated if you are seriously ill and unable to speak for yourself.


Advance Directives (2 types):  1) Living Wills and 2) Medical Power of Attorney


Planning Your Estate:  NC State University


Introduction to your NC Advance Directive


NC Health Care Power of Attorney


Partnership for Caring:  Frequently Asked Questions


 14.  Love and Money


Finances for Newlyweds Money Magazine


Marrying Your Money Money Magazine


5 Money Questions to Ask Before Marriage i-Village


Stop Fighting About Money i-Village


Stop Fighting About Money-- highlighted article


Raising A Child

    What is the cost of raising a child? (Bankrate.com)

    What is the cost of raising a child (The Commerce Bank of Washington)

    What is the cost of raising a child? (daddy2be)

    Cost of Raising a Child Calculator (BabyCenter)



  15. Charity/Giving


Charity Navigator


The Better Business Bureau Wise Giving Alliance


16. Education



FinAid:  Saving for College

SmartMoney:  College Planning


How much will parents have to contribute to college (SmartMoney)

FAFSA-- Parental Assets


Just for Fun