- Budgeting
- Cash Management
- Introduction
- Realize the Importance of Good Cash Management in Achieving Your Goals
- Understand the Different Cash Management Alternatives and How to Compare Them
- Know the Different Types of Financial Institutions
- Understand the Time Commitment Necessary for You to Effectively Manage Your Finances
- Summary
- Assignments
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #3
Data:
Your buddy Paul asks you about real returns. After showing him the correct method of calculating real returns, he wants to know what his real return is on his money market account. He shows you his brokerage statement, where he is earning a 4.5% yield. He also estimates that inflation will be 3.5% this year. Paul is in the 35% federal and 7% state marginal tax brackets.
Calculations:
What is his after-tax after-inflation return?
Recommendations:
What are the implications of this result for cash management decisions?
