Personal finance

Cover
Title
Copyright
Brief Contents
Contents
PART 1 PLANNING YOUR PERSONAL FINANCES
	Chapter 1—Personal Financial Planning: An Introduction
		Overview
		The Financial Planning Process
			Step 1: Develop Your Financial Goals
			Step 2: Determine Your Current Financial Situation
			Step 3: Identify Alternative Courses of Action
			Step 4: Evaluate Alternatives
			Step 5: Create and Implement a Financial Action Plan
			Step 6: Re- Evaluate and Revise Your Plan
		Developing Personal Financial Goals
			Factors That Influence Your Financial Goals
			Goal- Setting Guidelines
		The Influence of Economic Factors on Personal Financial Planning
			Market Forces
			Financial Institutions
			Global Influences
			Economic Conditions
		Opportunity Costs and the Time Value of Money
			Personal Opportunity Costs
			Financial Opportunity Costs
			Interest Calculations
			Future Value of a Single Amount
			Future Value of a Series of Deposits
			Present Value of a Single Amount
			Present Value of a Series of Deposits
		Achieving Financial Goals
			Components of Personal Financial Planning
			Developing a Flexible Financial Plan
			Implementing Your Financial Plan
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case
		Continuing Case
		Daily Spending Diary
		Appendix 1A—Financial Planners and Other Financial Planning Information Sources
		Appendix 1B—The Time Value of Money: Future Value and Present Value Computations
	Chapter 2—Money Management Strategy: Financial Statements and Budgeting
		Planning for Successful Money Management
			Opportunity Cost and Money Management
			Components of Money Management
		A System for Personal Financial Records
		Personal Financial Statements for Measuring Financial Sustainability
			The Personal Balance Sheet: Where Are You Now?
			The Cash Flow Statement: Where Did Your Money Go?
			Analyzing Your Current Financial Situation
		Budgeting: A Money Management Skill
			Starting the Budgeting Process
			Characteristics of Successful Budgeting
		Saving to Achieve Financial Goals
			Selecting a Saving Technique
			Calculating Savings Amounts
			Two- Income Households
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 3—Planning Your Tax Strategy
		Taxes and Financial Planning
			Taxes on Purchases
			Taxes on Property
			Taxes on Wealth
			Taxes on Earnings
		Filing Your Federal and Provincial Income Tax Return
			Who Must File?
		Income Tax Fundamentals
			Step 1: Determining Total Income
			Step 2: Calculating Net Income
			Step 3: Calculating Taxable Income
			Step 4: Calculating Federal Taxes Owing
			Step 5: Calculating Net Federal Tax
			Making Tax Payments
			Deadlines and Penalties
			Stephanie Seymour's 2016 Federal Tax Return
		Tax-Planning Strategies
			How Should You Receive Income?
			Tax- Free Savings Account
			Example
			Maximizing the Benefit of Deductions and Tax Credits
			Tax- Deferral Techniques
			Income- Splitting Techniques
			Ensuring That Your Portfolio is Tax Efficient
			Tax Issues Important to Students
			Changing Tax Strategies
		Tax Assistance and the Audit Process
			Tax Information Sources
			Tax Preparation Software and Electronic Filing
			Tax Preparation Services
			What If Your Return Is Audited?
		Summary of Learning Objectives
		Key Terms
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case
		Continuing Case
		Daily Spending Diary
		Appendix 3A—Stephanie's 2016 Ontario Tax T1 General Return
PART 2 MANAGING YOUR PERSONAL FINANCES
	Chapter 4—The Banking Services of Financial Institutions
		A Strategy for Managing Cash
			Meeting Daily Money Needs
			Types of Financial Services
			Electronic Banking Services
			Methods of Payment
			Opportunity Costs of Financial Services
			Financial Services and Economic Conditions
		Types of Financial Institutions
			Deposit- Type Institutions
			Non- Deposit Institutions
			Online Banking
			Comparing Financial Institutions
		Types of Savings Plans
			Regular Savings Accounts
			Term Deposits and Guaranteed Investment Certificates (GICS)
			Interest- Earning Chequing Accounts
			Canada Savings Bonds
		Evaluating Savings Plans
			Rate of Return
			Inflation
			Tax Considerations
			Liquidity
			Safety
			Restrictions and Fees
		Selecting Payment Methods
			Types of Chequing Accounts
			Evaluating Chequing Accounts
			Other Payment Methods
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case 1
		Life Situation Case 2
		Continuing Case
		Daily Spending Diary
	Chapter 5—Introduction to Consumer Credit
		What Is Consumer Credit?
			Consumer Credit in Our Economy
			Uses and Misuses of Credit
			Advantages of Credit
			Disadvantages of Credit
			Summary: Advantages and Disadvantages of Credit
		Types of Credit
			Consumer Loans
			Revolving Credit
			Costs Associated with Credit Cards
			Benefits of Credit Cards
			Steps to Follow When a Credit Card is Lost or Stolen
			Protecting Yourself Against Debit/Credit Card and identity Fraud
			Consumer Loans
		Measuring Your Credit Capacity
			Can You Afford a Loan?
			General Rules of Credit Capacity
			GDS and TDS Ratios
			Co- Signing a Loan
			Building and Maintaining Your Credit Rating
		Applying for Credit
			A Scenario from the Past
			What Creditors Look For: The Five Cs of Credit Management
			BEACON and FICO Scores
			How Can I Improve My Credit Score?
			What if Your Application Is Denied?
		Avoiding and Correcting Credit Mistakes
			In Case of a Billing Error
			Identity Crisis: What to Do if Your Identity is Stolen
		Summary of Learning Objectives
		Key Terms
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 6—Choosing a Source of Credit: The Costs of Credit Alternatives
		Sources of Consumer Credit
			What Kind of Loan Should You Seek?
		The Cost of Credit
			The Effective Cost of Borrowing
			Tackling the Trade- Offs
			Calculating Your Loan Payments
			Financial Planning Calculations
			Credit Insurance
		Managing Your Debts
			Warning Signs of Debt Problems
			The Serious Consequences of Debt
		Consumer Credit Counselling Services
		Declaring Personal Bankruptcy
			Fending Off Bankruptcy: Consolidation Loans
			Bankruptcy and Insolvency Act
			Effects of Bankruptcy on Future Credit
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 7—The Finances of Housing
		Evaluating Housing Alternatives
			Your Lifestyle and Your Choice of Housing
			Opportunity Costs of Housing Choices
			Renting versus Buying Housing
			Housing Information Sources
		Renting
			Selecting a Rental Unit
			Advantages of Renting
			Disadvantages of Renting
			Costs of Renting
			Renting Rights
		The Home-Buying Process
			Step 1: Determine Home Ownership Needs
			Step 2: Find and Evaluate a Property to Purchase
			Step 3: Price the Property
		The Finances of Home Buying
			Step 4: Obtain Financing
			Step 5: Close the Purchase Transaction
			Home Buying: A Final Word
		Selling Your Home
			Preparing Your Home for Selling
			Determining the Selling Price
			Sale by Owner
			Listing with a Real Estate Agent
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Life Situation Case 1
		Life Situation Case 2
		Continuing Case
		Daily Spending Diary
PART 3 INSURING YOUR ASSETS
	Chapter 8—Home and Automobile Insurance
		Insurance and Risk Management: An Introduction
			What Is Insurance?
			Types of Risks
			Risk Management Methods
			Planning an Insurance Program
		Property and Liability Insurance
			Potential Property Losses
			Liability Protection
		Principles of Home and Property Insurance
			Homeowner's Insurance Coverages
			Tenant's Insurance
			Home Insurance Types
			Exclusions
		Home Insurance Cost Factors
			Deductibles
			How Much Coverage Do You Need?
			Factors That Affect Home Insurance Costs
			Reducing Home Insurance Costs
		Automobile Insurance Coverages
			Motor Vehicle Coverages
			Other Automobile Insurance Coverages
		Automobile Insurance Costs
			Amount of Coverage
			Automobile Insurance Premium Factors
			High- Risk- Driver Insurance
			Reducing Automobile Insurance Premiums
		Summary of Learning Objectives
		Key Terms
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 9—Life, Health, and Disability Insurance
		Life Insurance: An Introduction
			What Is Life Insurance?
			The Purpose of Life Insurance
			The Principle of Life Insurance
		Determining Your Life Insurance Needs
			Do You Need Life Insurance?
			Determining Your Life Insurance Objectives
			Estimating Your Life Insurance Requirements
		Types of Life Insurance
			Term Life Insurance
			Permanent Life Insurance
			Other Types of Life Insurance Policies
		Important Provisions in a Life Insurance Contract
			Naming Your Beneficiary
			The Grace Period
			Policy Reinstatement
			Non- Forfeiture Clause
			Incontestability Clause
			Suicide Clause
			Automatic Premium Loans
			Misstatement of Age Provision
			Policy Loan Provision
			Riders to Life Insurance Policies
		Buying Life Insurance
			From Whom to Buy?
			Comparing Policy Costs
			Obtaining a Policy
			Examining a Policy
			Choosing Settlement Options
			Switching Policies
		Health Insurance and Financial Planning
			What Is Health Insurance?
			The Need for Supplemental Health Insurance
			Group Health Insurance
			Individual Health Insurance
			Supplementing Your Group Insurance
		Disability Income Insurance
			Definition of Disability
			Disability Insurance Trade- Offs
			Sources of Disability Income
			Determining Your Disability Income Insurance Requirements
			Critical Illness Insurance
		Supplemental Health Insurance
			Dental Expense Insurance
			Vision Care Insurance
			Health Services Insurance
			Travel Insurance
			Accidental Death or Dismemberment Insurance
			Long- Term Care Insurance
			Major Provisions in a Health Insurance Policy
			Health Insurance Trade- Offs
			Health- Care Expenditures in Canada
			Health Information Online
		Summary of Learning Objectives
		Key Terms
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case for Part 3
		Continuous Case
		Daily Spending Diary
PART 4 INVESTING YOURFINANCIAL RESOURCES
	Investing for the Future
	Chapter 10—Fundamentalsof Investing
		Preparing for an Investment Program
			Establishing Investment Goals
			Performing a Financial Checkup
			Getting the Money Needed to Start an Investment Program
			How Time Value of Money Leads to Long- Term Investment Success
		Factors Affecting the Choice of Investments
			Investment Safety and Risk
			Investment Income
			Investment Growth
			Investment Liquidity
		An Overview of Investment Alternatives
			Stock or Equity Financing
			Corporate and Government Bonds
			Mutual Funds
			Segregated Funds
			Real Estate
			Securitized Debt Instruments
			Process
			Other Investment Alternatives
			Summary of Factors That Affect Investment Choices
			A Personal Investment Plan
		Factors that Reduce Investment Risk
			The Role of a Financial Planner
			Your Role in the Investment Process
			Tax Considerations
		Sources of Investment Information
			The Internet and Online Services
			Online Newspapers and News Programs
			Business Periodicals and Government Publications
			Corporate Reports
			Statistical Averages
			Investor Services and Newsletters
			Mobile Information Services
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 11—Investing in Stocks
		Common Stocks
			How Are the Markets Doing?
			Why Corporations Issue Common Stocks
			Why Investors Purchase Common Stocks
		Preferred Stocks
			The Cumulative Feature of Preferred Stocks
			The Participation Feature of Preferred Stocks
			The Conversion Feature of Preferred Stocks
		Evaluation of a Stock Issue
			Stock Valuation
			Classification of Stock Investments
			How to Read Stock Prices
			Web Sites and Mobile Applications
			Stock Advisory Services
			Corporate News
			Factors That Influence the Price of a Stock
			Measures of Corporate Risk, Performance, and Shareholders' Returns
		Buying and Selling Stocks
			Primary Markets for Stocks
			Secondary Markets for Stocks
			Brokerage Firms and Account Executives
			Should You Use a Full- Service or a Discount Brokerage Firm?
			Types of Stock Orders
			Computerized Transactions
			Commission Charges
			Securities Regulation
		Long-Term and Short-Term Investment Strategies
			Long- Term Techniques
			Private Equity
			Short- Term Techniques
			Hedge Funds
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 12—Investing in Bonds
		Characteristics of Corporate Bonds
		Why Corporations Sell Corporate Bonds
			Types of Bonds
			Convertible Bonds and Bonds with Warrants
			Provisions for Repayment
			Other Types of Bonds
		Why Investors Purchase Corporate Bonds
			Stocks Always Beat Bonds: Myth or Fact?
			Interest Income
			Changes in Bond Value
			Bond Repayment at Maturity
			Comparing Bonds to GICs
			A Typical Bond Transaction
			The Mechanics of a Bond Transaction
		Government Bonds and Debt Securities
			Types of Bonds
			Provincial Government Securities and Guarantees
			Municipal Bonds/Instalment Debentures
			High- Yield Bonds
		The Decision to Buy or Sell Bonds
			Annual Reports
			The Internet
			Bond Ratings
			Bond Yield Calculations
			Other Sources of Information
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
		Appendix 12A—Market Interest Rates and Bond Pricing
	Chapter 13—Investing in Mutual Funds
		Why Investors Purchase Funds
			Characteristics of Mutual Funds
			Management Fees and Other Charges
			Management Expense Ratio
			Special Fees
		Classifications of Mutual Funds
		How to Make a Decision to Buy or Sell Mutual Funds
			How to Read the Mutual Funds Section
			Financial Objectives— Again
			Mutual Fund Prospectus
			Mutual Fund Annual Report
			Financial Publications
			The Internet
		The Mechanics of a Mutual Fund Transaction
			Return on Investment
			Taxes and Mutual Funds
			Purchase Options
			Withdrawal Options
		Summary of Learning Objectives
		Key Terms
		Key Formulas
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
PART 5 CONTROLLING YOUR FINANCIAL FUTURE
	Chapter 14—Retirement Planning
		Why Retirement Planning?
			Tackling the Trade- Offs
			The Importance of Starting Early
			The Basics of Retirement Planning
		Conducting a Financial Analysis
			Review Your Assets
		Retirement Living Expenses
			Adjust Your Expenses for Inflation
		Planning Your Retirement Housing
			Type of Housing
			Avoiding Retirement Housing Traps
		Planning Your Retirement Income
			Public Pensions
			Employer Pension Plans
			Personal Retirement Plans
			Tax- Free Savings Accounts ( TFSAs)
			Will You Have Enough Money during Retirement?
		Living on Your Retirement Income
			Tax Advantages
			Working during Retirement
			Investing for Retirement
			Dipping into Your Nest Egg
		Summary of Learning Objectives
		Key Terms
		Financial Planning Problems
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuing Case
		Daily Spending Diary
	Chapter 15—Estate Planning
		Why Estate Planning?
			What Is Estate Planning?
			Provincial Family Law
			The Opportunity Cost of Rationalizing
		Legal Aspects of Estate Planning
			Wills
		Types and Formats of Wills
			Writing Your Will
			Specific Requirements for a Will
			Altering or Rewriting Your Will
			A Living Will
			Ethical Will
			Letter of Last Instruction
		Types of Trusts and Estates
			Types of Trusts
			Pros and Cons of a Trust
			Estates
			Estate Assets Not Distributed by a Will
			Settling Your Estate
		Summary of Learning Objectives
		Key Terms
		Financial Planning Activities
		Creating a Financial Plan
		Life Situation Case
		Continuous Case for Part 5
		Continuing Case
		Daily Spending Diary
Appendix A: Daily Spending Diary
Glossary
	A
	B
	C
	D
	E
	F
	G
	H
	I
	J
	L
	M
	N
	O
	P
	R
	S
	T
	U
	V
	W
	Y
	Z
Index
	A
	B
	C
	D
	E
	F
	G
	H
	I
	J
	K
	L
	M
	N
	O
	P
	Q
	R
	S
	T
	U
	V
	W
	Y
	Z