Fullbfilebatbhttps://testbanku.eu/
bbb
SolutionbManualbforbPersonalbFinancialbPlanningb14thbEditionbbybBillingsley
Completebdownloadablebfilebat:
https://testbanku.eu/Solution-Manual-for-Personal-Financial-Planning-14th-Edition-by-
Billingsleyb
PersonalbFinancialbPlanning
By
RandallbS.bBillingsley,bPhD,bFRM,bCFA,bVirginiabTech
LawrencebJ.bGitman,bPhD,bCFP®,bSanbDiegobStatebUniversity
MichaelbD.bJoehnk,bPhD,bCFAb–bArizonabStatebUniversity
Thankbyoubforbreadingbthisbinstructor’sbmanual.bbIfbIbwerebyou,bIbwouldbnotbreadbitbbecausebIbhavebn
otbfoundbinstructor’sbmanualsbtobbebuseful.bbIfbyoubwillbkeepbreading,bIbhopebthatbthisbmanualbwillbbe
banbexception.bbMybgoalbisbtobgivebyoubusefulbhighlights bandbinformationbtobmakebyourbcoursebbetter
.
Thebpersonalbfinancialbplanningbcoursebhasbthebpotentialbtobbebablifebchangingbexperience.bbIfbyoubca
nbgetbthebstudentsbtobreadbthebbook,bunderstandbthebconceptsbtherein,bandbthenbapplybthembtobtheirblif
e,byoubwillbhavebdonebthembabgreatbservice.bbAndbthebstudentsbwillbbebrewardedbmultiplebtimes.
Thebgoalbofbthisbbookbisbtobremovebthebmysterybfrombthebpersonalbfinancialbplanningbprocessbandbre
placebitbwithbthebtoolsbyourbstudentsbneedbtobtakebchargebofbtheirbpersonalbfinancesbandblife.bToborga
nizebthisbprocess,bthebtextbisbdividedbintobsixbpartsbasbfollows.
•bPartb1:bFoundationsbofbFinancialbPlanning
•bPartb2:bManagingbBasicbAssets
•bPartb3:bManagingbCredit
•bPartb4:bManagingbInsurancebNeeds
•bPartb5:bManagingbInvestments
•bPartb6:bRetirementbandbEstatebPlanning
Thebsummarybofbtheblearningbgoalsbatbthebendbofbthebchapterbshouldbaidbthebstudentbinbreviewingbthe
bchapterbwhenbexambtimebcomes.bbItbwillbbebusefulbtobpointboutbtobthebstudentbhowbtobusebthisbmateri
al.
TheborganizationbofbthebInstructor’sbManualbforbeachbchapterbisbtob
• Keybissuesblistedbbyblearningbgoalbwithbsuggestionsbforbclassroombuseb[Thisbisbthebmostbusef
ulbsectionbofbthebIM.]
• ThebFinancialbFactborbFantasybfeaturesbareblistedbjustbafterbtheblearningbgoals.bbThesebarebals
oblistedbinbthebformbofbabTrue/FalsebquestionbthatbyoubcanbusebasbabPre-
testbtobintroducebthebchapter,basbabquiz,borbasbpartbofbanbexam.
• Solutionsbforbtheb“TestbYourself”bquestionsb–
bThesebmaybbebusedbasbquizborbexambquestions.bbAlso,bIbfoundbthatbbybgoingbthroughbeachbofb
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
, Fullbfilebatbhttps://testbanku.eu/
bbb
thebquestions,bIbrereadbthebchapter.bbThebquestionsbarebinbtheborderbofbthebchapterbandbcoversb
thebkeybpointsbofbthebchapter.bbBybanswersbthebTestbYourselfbquestions,byoubwillbreadbthebch
apter.
• YoubCanbDobItbNow.bbThesebfeaturesbgivesbthebstudentsblinksbtobinterestingbwebbsites.bbOneb
optionbforbusingbthesebisbtobassignbtwoborbthreebstudentsbtobgobtobthebsitesbandbreportbbackbtobt
hebclassbwhatbtheybfound.
• FinancialbImpactbofbPersonalbChoices.Readbandbthinkbaboutbthebchoicesbbeingbmade.bbDoby
oubagreeborbnot?bbAskbthebstudentsbtobdiscussbthebchoicesbbeingbmade.
• SolutionsbtobthebFinancialbPlanningbExercises–
bThesebmaybbebusedbasbquizborbexambquestions
• SolutionsbtobthebCriticalbThinkingbExercisesb–
bThesebmaybbebusedbasbquizborbexambquestions
• Listbofbkeybtermsbfrombthebchapter
• Outlinebofbthebchapter
IbshouldbpointboutbthatbthebPowerbPointsbslidesbthatbcomebwithbthebbookb[onlybupdatedbbybme]barebo
utstanding.bbTheybwillbbebusefulbtobyoubandbIbthinkbyoubshouldbusebthem.bbSincebthebcolorbisbwellbdo
ne,btheybwillbbebbestbusedbifbyoubcanbprojectbthembratherbthanbprintbblackbandbwhite.
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
, Fullbfilebatbhttps://testbanku.eu/
bbb
Understanding the b
Financial Planning Process b b
Chapter 1 b
HowbWillbThisbAffectbMe?
Thebheartbofbfinancialbplanningbisbmakingbsurebyourbvaluesblinebupbwithbhowbyoubspendbandbsave.bT
hatbmeansbknowingbwherebyoubarebfinanciallybandbplanningbonbhowbtobgetbwherebyoubwantbtobbebinb
thebfuturebnobmatterbwhatblifebthrowsbatbyou.bForbexample,bhowbshouldbyourbplanbhandlebthebproject
ionbthatbSocialbSecuritybcostsbmaybexceedbrevenuesbbyb2017?bAndbwhatbifbthebgovernmentbdecidesbt
obraisebtaxbratesbtobhelpbcoverbthebfederalbdeficit?bAnbinformedbfinancialbplanbshouldbreflectbsuchbun
certaintiesbandbmore.
Thisbchapterboverviewsbthebfinancialbplanningbprocessbandbexplainsbitsbcontext.bTopicsbincludebho
wbfinancialbplansbchangebtobaccommodatebyourbcurrentbstagebinblifebandbthebrolebthatbfinancialbplan
nersbcanbplaybinbhelpingbyoubachievebyourbobjectives.bAfterbreadingbthisbchapterbyoubwillbhavebabgo
odbperspectivebonbhowbtoborganizebyourboverallbpersonalbfinancialbplan.
LEARNING GOALS b
LG1bIdentifybthebbenefitsbofbusingbpersonalbfinancialbplanningbtechniquesbtomanagebyourbfinances.
KeybconceptbinbthisbsectionbisbthebplanningbmodelbasbdisplayedbinbExhibitb1.1.bbYourbstandardbofblivi
ngbisbgreatlybimpactedbbybyourbspendingbhabitsbandbyourbcommitmentbtobsaving.
ACTIVITY:bbAskbthebstudentsbtobassumebthatbtheybhavebjustbinheritedb$100,000.bbWhatbwillbyoubdob
withbthebmoney?bbWritebdownbthreebwaysbyoubwillbspendborbusebthebmoney.
Askbthebstudentsbtobsharebonebitembwithbthebclassbandbrecordbwhatbtheybsaybsobthatbthebentirebclassbc
anbreflexbonbthebanswers.bbHopefully,batbleastbabfewbwillbmentionbinvestingbevenbifbonlyb$10,000bofbt
hebamount.bbUsebtheirbanswersbtobdiscussbtakingbcarebofbcurrentbneedsbversusbfuturebneeds.bbFocusbo
nbtheirbpropensitybtobconsumebandbitsbimpactbonbaccumulatingbwealth.
UsebExhibitb1.2btobshowbhowbthebaveragebpersonbearnsbandbspendsbtheirbmoneybandbExhibitb1-
4btobhelpbthebstudentbidentifybwherebtheybarebnow.
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
bbb
SolutionbManualbforbPersonalbFinancialbPlanningb14thbEditionbbybBillingsley
Completebdownloadablebfilebat:
https://testbanku.eu/Solution-Manual-for-Personal-Financial-Planning-14th-Edition-by-
Billingsleyb
PersonalbFinancialbPlanning
By
RandallbS.bBillingsley,bPhD,bFRM,bCFA,bVirginiabTech
LawrencebJ.bGitman,bPhD,bCFP®,bSanbDiegobStatebUniversity
MichaelbD.bJoehnk,bPhD,bCFAb–bArizonabStatebUniversity
Thankbyoubforbreadingbthisbinstructor’sbmanual.bbIfbIbwerebyou,bIbwouldbnotbreadbitbbecausebIbhavebn
otbfoundbinstructor’sbmanualsbtobbebuseful.bbIfbyoubwillbkeepbreading,bIbhopebthatbthisbmanualbwillbbe
banbexception.bbMybgoalbisbtobgivebyoubusefulbhighlights bandbinformationbtobmakebyourbcoursebbetter
.
Thebpersonalbfinancialbplanningbcoursebhasbthebpotentialbtobbebablifebchangingbexperience.bbIfbyoubca
nbgetbthebstudentsbtobreadbthebbook,bunderstandbthebconceptsbtherein,bandbthenbapplybthembtobtheirblif
e,byoubwillbhavebdonebthembabgreatbservice.bbAndbthebstudentsbwillbbebrewardedbmultiplebtimes.
Thebgoalbofbthisbbookbisbtobremovebthebmysterybfrombthebpersonalbfinancialbplanningbprocessbandbre
placebitbwithbthebtoolsbyourbstudentsbneedbtobtakebchargebofbtheirbpersonalbfinancesbandblife.bToborga
nizebthisbprocess,bthebtextbisbdividedbintobsixbpartsbasbfollows.
•bPartb1:bFoundationsbofbFinancialbPlanning
•bPartb2:bManagingbBasicbAssets
•bPartb3:bManagingbCredit
•bPartb4:bManagingbInsurancebNeeds
•bPartb5:bManagingbInvestments
•bPartb6:bRetirementbandbEstatebPlanning
Thebsummarybofbtheblearningbgoalsbatbthebendbofbthebchapterbshouldbaidbthebstudentbinbreviewingbthe
bchapterbwhenbexambtimebcomes.bbItbwillbbebusefulbtobpointboutbtobthebstudentbhowbtobusebthisbmateri
al.
TheborganizationbofbthebInstructor’sbManualbforbeachbchapterbisbtob
• Keybissuesblistedbbyblearningbgoalbwithbsuggestionsbforbclassroombuseb[Thisbisbthebmostbusef
ulbsectionbofbthebIM.]
• ThebFinancialbFactborbFantasybfeaturesbareblistedbjustbafterbtheblearningbgoals.bbThesebarebals
oblistedbinbthebformbofbabTrue/FalsebquestionbthatbyoubcanbusebasbabPre-
testbtobintroducebthebchapter,basbabquiz,borbasbpartbofbanbexam.
• Solutionsbforbtheb“TestbYourself”bquestionsb–
bThesebmaybbebusedbasbquizborbexambquestions.bbAlso,bIbfoundbthatbbybgoingbthroughbeachbofb
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
, Fullbfilebatbhttps://testbanku.eu/
bbb
thebquestions,bIbrereadbthebchapter.bbThebquestionsbarebinbtheborderbofbthebchapterbandbcoversb
thebkeybpointsbofbthebchapter.bbBybanswersbthebTestbYourselfbquestions,byoubwillbreadbthebch
apter.
• YoubCanbDobItbNow.bbThesebfeaturesbgivesbthebstudentsblinksbtobinterestingbwebbsites.bbOneb
optionbforbusingbthesebisbtobassignbtwoborbthreebstudentsbtobgobtobthebsitesbandbreportbbackbtobt
hebclassbwhatbtheybfound.
• FinancialbImpactbofbPersonalbChoices.Readbandbthinkbaboutbthebchoicesbbeingbmade.bbDoby
oubagreeborbnot?bbAskbthebstudentsbtobdiscussbthebchoicesbbeingbmade.
• SolutionsbtobthebFinancialbPlanningbExercises–
bThesebmaybbebusedbasbquizborbexambquestions
• SolutionsbtobthebCriticalbThinkingbExercisesb–
bThesebmaybbebusedbasbquizborbexambquestions
• Listbofbkeybtermsbfrombthebchapter
• Outlinebofbthebchapter
IbshouldbpointboutbthatbthebPowerbPointsbslidesbthatbcomebwithbthebbookb[onlybupdatedbbybme]barebo
utstanding.bbTheybwillbbebusefulbtobyoubandbIbthinkbyoubshouldbusebthem.bbSincebthebcolorbisbwellbdo
ne,btheybwillbbebbestbusedbifbyoubcanbprojectbthembratherbthanbprintbblackbandbwhite.
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
, Fullbfilebatbhttps://testbanku.eu/
bbb
Understanding the b
Financial Planning Process b b
Chapter 1 b
HowbWillbThisbAffectbMe?
Thebheartbofbfinancialbplanningbisbmakingbsurebyourbvaluesblinebupbwithbhowbyoubspendbandbsave.bT
hatbmeansbknowingbwherebyoubarebfinanciallybandbplanningbonbhowbtobgetbwherebyoubwantbtobbebinb
thebfuturebnobmatterbwhatblifebthrowsbatbyou.bForbexample,bhowbshouldbyourbplanbhandlebthebproject
ionbthatbSocialbSecuritybcostsbmaybexceedbrevenuesbbyb2017?bAndbwhatbifbthebgovernmentbdecidesbt
obraisebtaxbratesbtobhelpbcoverbthebfederalbdeficit?bAnbinformedbfinancialbplanbshouldbreflectbsuchbun
certaintiesbandbmore.
Thisbchapterboverviewsbthebfinancialbplanningbprocessbandbexplainsbitsbcontext.bTopicsbincludebho
wbfinancialbplansbchangebtobaccommodatebyourbcurrentbstagebinblifebandbthebrolebthatbfinancialbplan
nersbcanbplaybinbhelpingbyoubachievebyourbobjectives.bAfterbreadingbthisbchapterbyoubwillbhavebabgo
odbperspectivebonbhowbtoborganizebyourboverallbpersonalbfinancialbplan.
LEARNING GOALS b
LG1bIdentifybthebbenefitsbofbusingbpersonalbfinancialbplanningbtechniquesbtomanagebyourbfinances.
KeybconceptbinbthisbsectionbisbthebplanningbmodelbasbdisplayedbinbExhibitb1.1.bbYourbstandardbofblivi
ngbisbgreatlybimpactedbbybyourbspendingbhabitsbandbyourbcommitmentbtobsaving.
ACTIVITY:bbAskbthebstudentsbtobassumebthatbtheybhavebjustbinheritedb$100,000.bbWhatbwillbyoubdob
withbthebmoney?bbWritebdownbthreebwaysbyoubwillbspendborbusebthebmoney.
Askbthebstudentsbtobsharebonebitembwithbthebclassbandbrecordbwhatbtheybsaybsobthatbthebentirebclassbc
anbreflexbonbthebanswers.bbHopefully,batbleastbabfewbwillbmentionbinvestingbevenbifbonlyb$10,000bofbt
hebamount.bbUsebtheirbanswersbtobdiscussbtakingbcarebofbcurrentbneedsbversusbfuturebneeds.bbFocusbo
nbtheirbpropensitybtobconsumebandbitsbimpactbonbaccumulatingbwealth.
UsebExhibitb1.2btobshowbhowbthebaveragebpersonbearnsbandbspendsbtheirbmoneybandbExhibitb1-
4btobhelpbthebstudentbidentifybwherebtheybarebnow.
©b2017bCengagebLearning®.bMaybnotbbebscanned,bcopiedborbduplicated,borbpostedbtobabpubliclybaccessiblebwebsite,binbw
holeborbinbpart,bexceptbforbusebasbpermittedbinbablicensebdistributedbwithbabcertainbproductborbserviceborbotherwisebonbab
password-protectedbwebsiteborbschool-approvedblearningbmanagementbsystembforbclassroombuse.
