Wiley Pathways Personal Finance

Vickie Bajtelsmit, is a professor in the College of Business at Colorado State University. She is the author of Personal Finance: Skills for Life as well as a member of several professional societies, including: the American Risk and Insurance Association, the Academy of Financial Services, the Financial Management Association, and the Risk Theory Society.

• Part I: The Personal Financial Planning Process 11. Personal Financial Planning in Action 1Introduction 21.1 The Personal Financial Planning Process 21.2 Factors That Influence Personal Financial Planning 61.3 Elements of a Comprehensive Financial Plan 121.4 Making Effective Decisions 13Summary 17Key Terms 17Summary Questions 18Applying This Chapter 19You Try It 212. Money Management Strategies and Skills 22Introduction 232.1 Collecting and Organizing Your Financial Information 232.2 Using Personal Financial Statements 252.3 Using Financial Ratios 33Summary 36Key Terms 37Summary Questions 38Applying This Chapter 39You Try It 413. Managing Your Taxes 42Introduction 433.1 The Basics of Federal Income Tax 433.2 Calculating Taxable Income and Taxes Owed 483.3 Filing Your Federal Tax Return 583.4 Tax Planning Strategies 62Summary 68Key Terms 68Summary Questions 71Applying This Chapter 72You Try It 74Part II: Managing Your Personal Finances 754. Managing Your Cash and Savings 75Introduction 764.1 Objectives of Cash Management 764.2 Rules of Effective Cash Management 794.3 Selecting a Financial Institution 814.4 Cash Management Products and Services 864.5 Resolving Cash Management Problems 96Summary 99Key Terms 99Summary Questions 102Applying This Chapter 103You Try It 1055. Consumer Credit 106Introduction 1075.1 What is Consumer Credit? 1075.2 Types of Consumer Credit 1115.3 Applying for Credit 1135.4 Protecting Your Credit and Correcting Credit Mistakes 1155.5 Credit Cards 1195.6 Advantages and Disadvantages of Credit Card Use 124Summary 128Key Terms 128Summary Questions 131Applying This Chapter 132You Try It 1336. Using Consumer Loans 134Introduction 1356.1 Characteristics of Consumer Loans 1356.2 Types of Consumer Loans 1376.3 Sources of Consumer Loans 1426.4 Managing Your Debts 1446.5 Declaring Personal Bankruptcy 149Summary 152Key Terms 152Summary Questions 154Applying This Chapter 155You Try It 1577. Making Automobile and Housing Decisions 158Introduction 1597.1 Buying a Motor Vehicle 1597.2 Automobile Financing Alternatives 1677.3 The Housing Decision 1707.4 Buying a Home 1747.5 Mortgage Financing 1767.6 Completing a Real Estate Transaction 183Summary 185Key Terms 185Summary Questions 187Applying This Chapter 188You Try It 189Part III: Protecting Yourself with Insurance 1908. Insuring Your Home and Automobile 190Introduction 1918.1 How Insurance Works 1918.2 Managing Homeowners’ and Renters’ Risk 1948.3 Homeowner’s Insurance Policies 1978.4 Automobile Insurance 2028.5 Buying Insurance and Filing Claims 209Summary 211Key Terms 211Summary Questions 214Applying This Chapter 215You Try It 2179. Health and Disability Insurance 218Introduction 2199.1 Employee Compensation and Health Insurance 2199.2 Types of Health Insurance 2259.3 Planning for Disability Income Needs 236Summary 240Key Terms 240Summary Questions 243Applying This Chapter 244You Try It 24610. Financial Planning with Life Insurance 247Introduction 24810.1 What is Life Insurance? 24810.2 Determining Your Life Insurance Needs 25110.3 Choosing Life Insurance Companies and Policies 25810.4 Buying Life Insurance 26410.5 Important Provisions in a Life Insurance Contract 267Summary 271Key Terms 271Summary Questions 274Applying This Chapter 275You Try It 277Part IV: Managing Your Investments and Your Future 27811. Investment Basics 278Introduction 27911.1 Developing Realistic Investment Goals 27911.2 Understanding Your Investment Alternatives 28411.3 Factors That Reduce Investment Risk 28911.4 Establishing Your Investment Strategy 297Summary 301Key Terms 301Summary Questions 304Applying This Chapter 305You Try It 30612. Investing in Stocks and Bonds 307Introduction 30812.1 Common Stock 30812.2 Classification of Common Stock 31412.3 Buying and Selling Stocks 31712.4 Stock Selection and Performance Evaluation 32312.5 Investing in Bonds 32812.6 Buying and Selling Bonds 33712.7 Preferred Stock 341Summary 343Key Terms 344Summary Questions 347Applying This Chapter 348You Try It 35013. Investing in Mutual Funds 351Introduction 35213.1 What is a Mutual Fund? 35213.2 Mutual Fund Investment Classifications 36313.3 Selecting and Evaluating Mutual Funds 367Summary 373Key Terms 374Summary Questions 376Applying This Chapter 377You Try It 37814. Planning for Retirement 380Introduction 38114.1 Estimating Retirement Income Needs 38114.2 Sources of Retirement Income 38614.3 Personal Retirement Savings Options 39414.4 Preparing for Retirement Payouts 397Summary 400Key Terms 400Summary Questions 401Applying This Chapter 402You Try It 40315. Preserving Your Estate 404Introduction 40515.1 What is Estate Planning? 40515.2 Key Components of an Estate Plan 40815.3 Types and Formats of Wills 41115.4 Estate and Gift Taxes 41715.5 Reducing Taxes Through Trusts and Gifts 421Summary 426Key Terms 426Summary Questions 428Applying This Chapter 429You Try It 431Endnotes 432Appendix 433Glossary 455Index 478