I Index. Accountant, 140

Transcription

1 I A Accountant, 140 advantages, 141 disadvantages, 141 ACH. See Automated Clearing House (ACH) Adjustable rate mortgage (ARM), 80 Annual fee payment, in credit card, 58 Appreciable assets, 6 ARM. See Adjustable rate mortgage (ARM) Artwork valuation, 5 Assets, 1 appreciable, 6 building, 8 definition, 2 depreciable, 7 listing and valuing, 2 artwork, 5 car, 5 6 cash, 3 furniture, 4 5 home, 3 4 securities, 3 ATM. See Automated teller machine (ATM) ATM fees, 131 Auto insurance, 134 Auto loans, 12 Automated Clearing House (ACH), 25 Automated teller machine (ATM), 129 Auto Pay, 25 B Bad credit brokers, 70 lowest rates, 70 refinancing, 70 Bad debt vs. good debt, Balance sheets, 1 Balance transfer fee, in credit card, 59 Bank accounts ATM fees, 131 checking account basic checking, 129 express, 130 free checking, 130 interest bearing, 130 savings accounts, 130 Basic checking account, 129 Big-ticket item shopping, Bill calendar, 26 Bodily injury liability coverage, 134 Bond corporate, 120 features call provision, 119 coupon, 118 credit quality, 118 interest, 118 issue amount, 118 maturity, 118 price, 118 principal, 118 yield,

2 146 Bond (cont.) government, 119 market, municipal, prices and interest rates, Borrowing, 13 Brokers, 70 Budget, 35 building, 37 items to be included, 37 auto insurance, 39 automobile gas and repairs, 38 cable, 38 car lease payments, 38 car loans, 38 charity, 39 clothing, 38 college fund, 39 credit card payments, 38 dental expenses, 38 eating out, 38 electricity, 38 emergency fund, 39 entertainment, 38 grocery, 38 health insurance, 39 heating, 37 home equity loans, 38 home insurance, 39 investments, 39 life insurance, 38 medical expenses, 38 mortgage payment, 37 personal care, 38 public transportation, 38 recreation, 38 rent, 37 retirement plan, 39 savings, 39 special expenses, 39 telephone (landline) and Internet, 38 telephone (mobile), 38 vacation fund, 39 water and sewer, 37 maximization, 40 automobile gas and repairs, 42 borrowing, 42 cable, 41 clothing, 42 dental expenses, 42 eating out, electricity, 41 entertainment, 42 grocery, 41 heating, 40 insurance, 42 investing, 42 medical expenses, 42 mortgage payment, 40 personal care, 42 public transportation, 42 recreation, 42 rent, 40 telephone (landline) and Internet, 41 telephone (mobile), 41 water and sewer, 40 and saving, 43 importance, reasons for, seizing opportunity, 44 smart saver, 45 total expenditures, Building assets, 8 Buying on discount, 52 online things to avoid during purchase, 53 things to purchase, 52 C Capital appreciation, Car purchase, 85 advantages, 87 disadvantages, 87 vs. leasing, ride share, 88 tips, 88 financing, gathering information, 89 interest rates, 89

3 147 Car valuation, 5 6 Cash, 3 advance fee, in credit card, 59 stock market, 110 Certificates of deposit (CD), 131 Certified financial planner (CFP), 138 CFO. See Chief financial officer (CFO) CFP. See Certified financial planner (CFP) Charges and late fee avoidance, financial feng shui, 24 ACH, 25 bill calendar, 26 online bill pay, 26 Chief financial officer (CFO), 1, 40 Coinsurance, in health insurance, 133 Collision insurance, 134 Common liabilities, 12 auto loans, 12 credit card balances, home mortgages, 12 Comparable multiples, of stock, 112 Compounding interest, on investment, 107 Comprehensive insurance coverage, 134 Computer shopping, Copay, in health insurance, 133 Corporate bonds, 120 Credit cards, 57 advantages credit score, flexibility, 60 rewards, 60 security, 60 track spending, 60 warranties, 60 balances, components, 58 annual fee, 58 balance transfer fee, 59 cash advance fee, 59 credit limit, 60 interest rates, 60 late fee, 58 overlimit fee, vs. debit cards, disadvantages credit score, 61 interest, 61 late fees, 61 security, 61 fee-based, 62 FICO score anatomy, improvement, myths about, maximum utilization, test, 61 Credit limit, in credit card, 60 Credit score. See Fair Issac Corporation (FICO) score D Debit cards advantages late fees avoidance, 62 limited spending, 62 unlimited spending, avoidance of, 62 disadvantages account holds, 63 overdrafts, 63 Debt reduction, 97 excessive debt, consequences, 98 resurrection from debt, stock market, 111 Debt-to-income ratio, 78 Deductible pay, in health insurance, 133 Depreciable assets, 7 Disability insurance, 135 Discounted cash flow model, 112 Discount purchases. See Buying:on discount Diversification, on investment, 107 Dividend(s) growth model, 111 stock market, 111 Dream job, 30 preparation, 30

4 148 Dream job (cont.) promotion, steps for, 31 meeting management, 32 perception, profit-center people, public speaking, 32 Dumb shopping, E EAR. See Effective annual rate (EAR) Earnings per share (EPS), 110 Education, 91 FAFSA, 95 Pell Grants, 96 Stafford Loans, 96 funding sources grants, 93 loans, 94 managing student loans, 95 scholarships, 94 student loans, work-study, 95 planning, 92 Education savings accounts (ESAs), 92 Effective annual rate (EAR), 71 EPS. See Earnings per share (EPS) Equity, 17 networth calculation, growth, importance, 18 ESAs. See Education savings accounts (ESAs) ETFs. See Exchange traded funds (ETFs) Excessive debt, Exchange traded funds (ETFs), 116 Existentialist investor, 114 Express checking account, 130 F Face value. See Par value FAFSA. See Free application for federal student aid (FAFSA) Fair Isaac Corporation (FICO) score anatomy, 63 balances and amounts owed, 64 credit history, length of, 64 credits used, 64 new credit, 64 payment history, 64 improvement, mortgage, 78 myths about, 65 all-encompassing credit score, 66 closing unused accounts, 66 simple credit profile, 66 timely bill payment, 66 Federal Home Loan Mortgage Corporation, 81 Federal National Mortgage Association, 81 Fee-based credit cards, 62 Financial advisors, 137 accountant, 140 advantages, 141 disadvantages, 141 choice, 141 financial planners, 138 insurance broker, 139 advantages, 140 disadvantages, 140 money managers, 138 stockbrokers, 138 Financial feng shui, 23 charges and late fees avoidance, 24 ACH, 25 bill calendar, 26 online bill pay, 26 freeing mind, 23 hanging folders, 24 paperless, 24 lower rates negotiation, Financial planners, 138

5 149 Financing, a car purchase, Free application for federal student aid (FAFSA), 95 Pell Grants, 96 Stafford Loans, 96 Free checking account, 130 Funding sources, for education grants, 93 loans, 94 scholarships, 94 student loans, management, 95 work-study, 95 Funds, source of, 79 Furniture valuation, 4 5 G Good debt vs. bad debt, Government bonds, 119 Grants, 93 H Health insurance, Hedge funds, 116 Home mortgages, 12 Homeownership, 81 costs, 82 financial risk, foreclosure, 82 mobility, 82 Homeowners insurance, Home valuation, 3 4 I Initial public offering (IPO), 104 Insurance broker, 139 advantages, 140 disadvantages, 140 Insurance protection, 132 auto insurance, 134 disability insurance, 135 health insurance, homeowners insurance, life insurance, renters insurance, 135 Interest bearing checking account, 130 Interest rate of bonds, in credit card, 60 Investment, 103 basics, 104 jargon compounding interest, 107 diversification, 107 leverage, 106 present value, 106 rate of return, 105 required rate of return, Rule of 72, 107 Jump-the-Shark Theory, portfolio theory, IPO. See Initial public offering (IPO) J, K Job, dream. See Dream job Jump-the-Shark Theory, Junk bonds, 120 L Late fee avoidance, in credit card, 58 Late night TV and borrowing, 69 predatory lenders, predatory loan types, 70 overdraft loans, 72 payday loans, 71 refund anticipation loans, 73 reverse mortgages, single premium credit insurance, title loans, 72 Leasing advantages, 86 vs. car purchase, disadvantages, Leverage, on investment, 106 Liabilities, 9 borrowing, 13

6 150 Liabilities (cont.) common liabilities, 12 auto loans, 12 credit card balances, home mortgages, 12 compounding interest, good debt vs. bad debt, personal finance, 9 pros and cons, LIBOR. See London Interbank Offer Rate (LIBOR) Life insurance, Listing and valuing assets, 2 artwork, 5 car, 5 6 cash, 3 furniture, 4 5 home, 3 4 securities, 3 Loans, 94 London Interbank Offer Rate (LIBOR), 118 Longer-term mortgage, 77 M Madoff, Bernie, 137 Meeting management, 32 Miami Vice, 51 Money managers, 138 Money market accounts, Montana, Tony, 137 Mortgage(s), 9, 75 application, 76 debt-to-income ratio, 78 down payment, 77 FICO score, 78 funds, source of, 79 longer-term mortgage, 77 monthly payments, 77 property value, 79 rate, 76 shorter-term mortgage, 77 size, 77 term, 76 Federal Home Loan Mortgage Corporation, 81 Federal National Mortgage Association, 81 home, 12 homeownership, 81 costs, 82 financial risk, foreclosure, 82 mobility, 82 refinancing, 79 reasons for, worthiness, renting, reverse (see Reverse mortgages) Municipal bonds, Mutual funds, 115 N Networth calculation, 18 growth, importance, 18 O Online bill pay, 26 Online purchases. See Buying:online Out of Africa, 8 Overdraft loans, 72 Overlimit fee, in credit card, P, Q Par value, 118 Payday loans, 71 Pell Grants, 96 Personal injury protection, 134 Planning, for education, 92 Portfolio theory, on investment, Predatory lenders, Predatory loan types, 70 overdraft loans, 72 payday loans, 71 refund anticipation loans, 73

7 151 reverse mortgages, single premium credit insurance, title loans, 72 Premium payment, in health insurance, 133 Present value, on investment, 106 Prices, of bonds, Primary bond market, 120 Property damage liability coverage, 134 Property flippers, in real estate investment, 125 Property management, in real estate investment, 126 Property value, 79 Public speaking, 32 R Rate of return, on investment, 105 Real estate investment, 123 advantages, capital appreciation, disadvantages, 125 income, 125 property flippers, 125 property management, working, 124 Refund anticipation loans, 73 Renters insurance, 135 Renting, Required rate of return, on investment, Resurrection, from debt, Reverse mortgages, Ride share, 88 Rule of 72, 107 S Saving(s), 43 accounts, 130 importance, reasons for, seizing opportunity, 44 smart saver, 45 Scholarships, 94 Schwab, Charles, 138 Secondary bond market, Securities, 3 Shopping, 47 dumb, smart, 49 importance, 49 needed wants, 51 needs, 50 wants, 50 smart shopper, 51 big-ticket items, buying on discount, 52 buying online, small-ticket items, Shorter-term mortgage, 77 Single premium credit insurance, Small-ticket item shopping, Smart investment existentialist investor, 114 portfolio, building, 113 stock prices, hike in, 114 Smart saver, 45 Smart shopper, 51 big-ticket items, buying on discount, 52 buying online things to avoid during purchase, 53 things to purchase, 52 small-ticket items, Smart shopping, 49 needed wants, 51 needs, 50 wants, 50 Stafford Loans, 96 Stockbrokers, 138 Stock market, 109 company analysis, 110 cash, debt, 111 dividends, 111 EPS, 110 growth, 111 guidance, 110

8 152 Stock market (cont.) funds, 114 ETFs, 116 hedge, 116 investment, 115 mutual, 115 smart investment existentialist investor, 114 portfolio, building, 113 stock prices, hike in, 114 stock prices, valuation, Stock prices factors influencing, 112 analyst recommendations, 113 company changes, 112 earnings, 112 economic news, 113 insider buying, 112 mergers and acquisitions, 112 stock splits, 113 hike in, 114 Student loans, management, 95 T Term insurance, 133 Title loans, 72 U Uninsured motorist insurance coverage, 134 Universal life insurance, 134 U.S. Department of Education, 94 V Valuation of assets, 2 of stock market, W, X, Y, Z Wall Street MBA, The, 2 Whole life insurance, 133