1. How is net worth calculated. Give the formula. (LO1) 2. How are cash value life insurance policies valued on the balance sheet? What about term insurance? Which is better for most investors? Why? (LO 3) 3. How are retirement plans such as 401(k), IRA, or 403(b) valued for the personal balance sheet? Hint: What dollar value do we use? Or how is the dollar value determined? (LO 3) 4. What is the best method for compensating your financial planner? (LO4) 5. What is a defined benefit retirement plan and is it generally considered superior to a 401(k), IRA, 403(b) etc.? (LO3) 6. What advice should one seek before purchasing cash value life insurance, and from whom? Hint: The answer is not an insurance sales person or agent. (LO 3) 7. What are the major parts of the personal balance sheet? (LO 1) 8. What time period does a personal balance sheet cover? (LO 1) 9. Define liquid asset. (LO 1) 10. Distinguish between recurring and unexpected expenses. (LO 2)

1. How is net worth calculated. Give the formula. (LO1) 2. How are cash value life insurance policies valued on the balance sheet? What about term insurance? Which is better for most investors? Why? (LO 3) 3. How are retirement plans such as 401(k), IRA, or 403(b) valued for the personal balance sheet? Hint: What dollar value do we use? Or how is the dollar value determined? (LO 3) 4. What is the best method for compensating your financial planner? (LO4) 5. What is a defined benefit retirement plan and is it generally considered superior to a 401(k), IRA, 403(b) etc.? (LO3) 6. What advice should one seek before purchasing cash value life insurance, and from whom? Hint: The answer is not an insurance sales person or agent. (LO 3) 7. What are the major parts of the personal balance sheet? (LO 1) 8. What time period does a personal balance sheet cover? (LO 1) 9. Define liquid asset. (LO 1) 10. Distinguish between recurring and unexpected expenses. (LO 2)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 1FPE: Adapting to a low-interest-rate environment. A retired couple has expressed concern about the really...

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