- 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 #1
Data:
Bill is an investor in the 15% federal marginal tax bracket and 7% state tax bracket. Suzie is an investor in the 35% federal tax bracket and 7% state tax bracket. They are each considering purchasing one of the following bonds for their investment portfolios:
- A 6.5% corporate bond (all taxable)
- A 4.75% municipal bond (federal tax-free)
- A 5.0% treasury bond (state tax-free)
Calculations:
Calculate the after-tax returns for each of the above bonds for both Bill and Suzie.
Recommendations:
Which bonds should Bill and Suzie purchase and why?
