FIN 301 Syllabus Fall ’09 B
Written on September 15, 2009 – 2:35 pm | by Blogmaster
FIN 301
Personal Finance
Fall 2009 Prof. J. Mallett
OFFICE: 418 Lynn Business Center
OFFICE HOURS: Monday & Wednesday 10:30-12:00
Tuesday & Thursday 10:00-11:00
E-MAIL : jmallett@stetson.edu
BLACKBOARD Course materials and grades will be placed on Blackboard.
PHONE Office: 822-4061
Fax: 822-7491
TEXT: Arthur J. Keown, Personal Finance, Fifth Edition.
SUPPLEMENTAL
MATERIALS Stock-Trak Portfolio Simulation
OUTLINE AND READING ASSIGNMENTS
I. Financial Planning
A. Importance of Personal Finance Ch. 1
B. Financial Planning Ch. 2
C. Time Value of Money Ch. 3
D. Taxes Ch. 4
II. Managing Debt and Purchases
A. Debt Management Ch. 6 & 7
B. Major Purchases: Car and Home Ch. 8
III. Investment Planning
A. Introduction to Investments Ch. 11
B. Securities Markets Ch. 12
C. Investing in Stocks Ch. 13
D. Fixed Income & Real Assets Ch. 14
D. Mutual Funds Ch. 15
IV. Planning for Financial Independence, Retirement and Estate Planning
A. Base-Level Financial Independence
B. Retirement Planning Ch. 16
C. Estate Planning Ch. 17
GRADING: Assignments 25%
First Exam (Sept. 17) 20%
Second Exam (Oct.22) 25%
Final Exam (Comprehensive) 30%
(Tuesday, Dec. 8, 2:00-4:00pm)
GRADING SCALE: 90-92 = A-, 93-97 = A, 98-100 = A+
80-82 = B-, 83-87 = B, 88-89 = B+
70-72 = C-, 73-77= C, 78-79 = C+
60-62 = D-, 63-67 = D, 68-69 = D+
ATTENDANCE: Attendance will be taken and good attendance is highly recommended
CALCULATOR: You will need a financial calculator or use Excel for problems on assignments and exams.
HONOR SYSTEM: This class will adhere to Stetson University’s Honor System. Academic integrity violations will be reported to the Honor System Council. Normally, I will follow recommendations that they make concerning academic penalties.
GOAL: The goal of this course is to have students gain a basic understanding of personal finance so that they can reach and maintain financial security in their lifetimes. Additionally, students may use the concepts in this course to work toward a career in financial planning.
Material on this syllabus, such as the following learning objectives, are subject to change during the course. You are responsible for attending class to receive these changes.
Learning Objectives:
Chapter 1:
1- Explain the role of personal financial planning.
2- Describe the five basic steps of personal financial planning.
3- Set your financial goals.
4- Describe the different stages of the financial life cycle.
5- Explain why education is the key factor in determining your income level.
6- Explain the 15 axioms that form the foundations of personal financial planning.
7- Describe five lifetime financial objectives of most people.
8- Explain how key factors, such as career choice, education, place of residence, marital status, and stage in the life cycle, affect income.
Chapter 2:
1- Calculate your level of net worth or wealth using a balance sheet.
2- Analyze where your money comes from and where it goes using an income statement.
3- Use ratios to identify your financial strengths and weaknesses.
4- Set up a sound record-keeping system to track your income and expenditures.
5- Implement a financial plan or budget that will provide for the level of savings needed to achieve your goals.
6- Decide what role, if any, a professional financial planner will play in your financial affairs.
7- Understand that fraud exists in the area of financial advice.
8- Understand the Commissions vs. Fees debate among financial planners.
9- Describe the relationship between financial planning and budgeting.
Chapter 3:
1- Understand the concept of the time value of money.
2- Be able to use a financial calculator to determine the time value of money.
Chapter 4:
1- Identify and understand the major tax features that affect all taxpayers.
2- Understand what is taxable income and how taxes are determined.
3- Choose the tax form that’s right for you.
4- Calculate your income taxes.
5- Explain what tax help alternatives are and how to get help in preparing your taxes if you need it.
6- Use the tools of tax planning.
Chapter 6:
1- Know how credit cards work.
2- Understand the costs involved with credit cards.
3- Describe the different types of credit cards and their advantages and disadvantages.
4- Know what determines your credit card worthiness and how to secure a credit card.
5- Manage your credit cards and open credit.
Chapter 7:
1- Understand and choose from the various consumer loans.
2- Calculate the cost of a consumer loan.
3- Pick an appropriate source for your loan.
4- Know when to borrow.
5- Control your debt.
Chapter 8:
1- Choosing a car or house that meets your needs and budget.
2- Deciding to lease, rent, or buy.
3- Calculate the cost of buying a home.
4- Obtaining the appropriate mortgage.
Chapter 11:
1- Set your goals and be ready to invest.
2- Differentiate between investing and speculating.
3- Understand how taxes impact your investments.
4- Calculate interest rates and real rates of return.
5- Manage risk in your investments.
6- Diversify your investments.
7- Allocate your assets in the manner that is best for you.
8- Explain what efficient market theory implies about investing.
Chapter 12:
1- Identify and describe the primary and secondary securities markets.
2- Trade securities using a broker.
3- Locate and use several different sources of investment information to trade securities.
4- Describe the major characteristics of bonds.
Chapter 13:
1- Understand the basics of stock investing.
2- Explain the general classifications of common stock.
3- Understand the basic valuation models for common stocks.
4- Understand the risks associated with investing in common stocks.
Chapter 14:
1- Understand the nature of bonds.
2- Understand the valuation of bonds.
3- Compare preferred stock to bonds as an investment.
4- The nature of real assets as an investment.
Chapter 15:
1- Weigh the advantages and disadvantages of investing in mutual funds.
2- Differentiate between open- and closed-end mutual funds, unit investment trusts, and real estate investment trusts.
3- Classify mutual funds according to their objectives.
4- Use those mutual fund services that best meet your needs.
5- Be able to distinguish between load and no-load mutual funds.
6- Define what is meant by an index mutual fund.
7- Understand why index funds provide superior investment performance.
Chapter 16:
1- Understand the changing nature of retirement planning.
2- Plan for your retirement.
3- Set up a retirement plan.
4- Contribute to a tax-favored retirement plan to help fund your retirement.
5- Choose how your retirement benefits are paid out to you.
6- Put together a retirement plan and effectively monitor it.
7- Define base-level financial independence.
Chapter 17:
1- Understand the importance and the process of estate planning.
2- Calculate and avoid your estate taxes.
3- Draft a will and understand its purpose in estate planning.
4- Know how to avoid probate.