The personal finance calculator: how to calculate the most important financial decisions in your life

TeamLiB......Page 1
Cover......Page 2
Contents......Page 5
ACKNOWLEDGMENTS......Page 9
INTRODUCTION......Page 11
PART ONE Assessing Your Current Wealth......Page 15
#1 How to Determine Your Net Worth......Page 17
#2 How to Determine a Cash In.ows and Out.ows Statement......Page 22
#3 How to Formulate a Budget......Page 26
#4 Time Value of Money and What It Can Do for You......Page 34
#5 Simple Interest and How to Calculate It......Page 36
#6 Compound Interest and How to Determine Future Value......Page 37
#7 What You Need to Know About Nominal Versus Effective Interest Rates and How to Calculate the Effective Rate......Page 44
#8 Present Value and How to Calculate It......Page 47
#9 Annuities and How to Calculate Them......Page 51
#10 How to Determine the Amounts Needed to Fund Your Objectives......Page 66
#11 How to Reconcile Your Checking Account......Page 75
#12 How to Prepare Your Records for Your Tax Accountant......Page 82
PART TWO Managing Your Personal Wealth¡ªDebt......Page 87
#13 Determine Your Debt Capacity......Page 89
#14 How to Determine the Best Source of Credit......Page 91
#15 How to Determine the Annual Percentage Rate Costs of Using Credit Loans......Page 95
#16 How to Determine the Rate of Interest on Your Credit Cards......Page 104
#17 How to Manage Your Debt......Page 108
#18 How Much of a Mortgage Can You Afford?......Page 113
#19 How to Calculate Your Monthly Mortgage Payment......Page 117
#20 How to Determine Your Mortgage Balance......Page 121
#21 Determine Your Mortgage Balance When Additional Principal Payments Are Made......Page 125
#22 Adjustable Rate Mortgages and How They Work......Page 128
#23 Which Type of Mortgage Should You Choose?......Page 135
#24 When Should You Re.nance Your Mortgage?......Page 139
#25 Should You Rent or Buy a House?......Page 141
#26 What You Should Know About Leasing a Car and How a Lease Works......Page 145
#27 Should You Buy, Lease, or Finance Your Car?......Page 150
#28 How to Create a Simple Interest Loan Schedule......Page 156
PART THREE Managing Your Personal Wealth¡ªInvestments......Page 161
#29 Determine Your Investment Objectives......Page 163
#30 Determine Your Risk Tolerance......Page 166
#31 How to Allocate Your Investments......Page 172
#32 How to Determine Your Equity Style in the Selection of Individual Stocks......Page 179
#33 How to Determine Which Types of Bonds to Buy for a Portfolio......Page 185
#34 How to Rebalance Your Portfolio......Page 189
#35 The Rule of 72 and How to Use It to Determine How Long It Will Take to Double Your Money......Page 193
#36 How to Assess and Balance Risk and Return in the Choice of Different Investments......Page 194
#37 How to Calculate a Simple Rate of Return for Stocks and Bonds......Page 200
#38 How to Determine a Rate of Return for a Mutual Fund......Page 204
#39 How to Determine the Yield on Treasury Bills......Page 207
#40 How to Determine the Purchase and Selling Price of Treasury Bills......Page 211
#41 How to Buy and Sell Treasury Securities Directly from the Federal Reserve......Page 215
#42 How to Convert Municipal Bond Yields to Before-Tax Yields......Page 221
#43 Duration and How It Can Help You in the Choice of Bonds for Your Portfolio......Page 225
#44 How to Value Bonds......Page 231
#45 How to Value Common Stock......Page 234
#46 How to Determine the Growth Rate of a Stock......Page 240
#47 How to Analyze and Evaluate Your Common Stocks......Page 243
#48 How to Choose a Mutual Fund......Page 260
#49 How to Determine the Tax Consequences of Buying and Selling Shares in a Mutual Fund......Page 268
#50 How to Determine the Average Cost in Dollar Cost Averaging......Page 273
PART FOUR Planning for Your Future......Page 277
#51 How to Determine Your Future Financial Needs and How to Fund Them......Page 279
#52 How to Determine How Long Your Money Will Last in Retirement and the Amount of the Payment in a Systematic Withdrawal Plan......Page 286
APPENDICES......Page 291
INDEX......Page 301