YU#8-PERSONAL FINANCIAL PLANNING

YU#8-PERSONAL FINANCIAL PLANNING - LECTURE #8-PERSONAL...

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LECTURE #8-PERSONAL FINANCIAL PLANNING AGENDA 1. Current Events-The October 30, 2007 Federal Fiscal Update. 2. Chapter #15-Investments:Cash/Near Cash, 3. All Multiple-choice Questions (Pages #381-382) and Problem #5,6,7,10 & 11 (Pages #383-385).
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Chapter #15 Learning Objectives: 1. Understand the different investment options available for your investment portfolio. 2. Understand how to construct an customized investment portfolio for your client using the available investment options.
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CHAPTER #15-CONTINUED INTRODUCTION Portfolio management/Investment Planning is not about picking the right stocks. Stock selection actually is a very small component of successful portfolio management and superior rates of return. Choosing the proper mix of investments (known as Asset Allocation ) will have the greatest impact on the portfolio’s rate of return.
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Investments-Continued In order to understand what “Asset Allocation” is, we must first understand the different investment categories. An investment portfolio may include any or all of the following components: 1. 2. Fixed Income (Bonds, etc.) 3. Equity (Stocks) 4. Your portfolio “asset allocation” simply describes how your portfolio is divided up between these categories.
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Cash and Cash Equivalents Assets that are cash and/or can be converted to cash for their full value easily Examples Cash/Bank Accounts Term Deposits Cashable GIC’s T-Bills Commercial Paper Regular Canada Savings Bonds
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Risks Associated with Cash and Cash Equivalents Cash investments are designed to protect your money while earning a current rate of return. With cash investments you can generally be sure your original investment is safe. If you need quick access to your money, cash investments are the most liquid. Due to their short-term, price fluctuations are kept to a minimum. The main risk associated with cash investments is loss
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YU#8-PERSONAL FINANCIAL PLANNING - LECTURE #8-PERSONAL...

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