clueless asked:


I’m a college student that needs a really good planner to record my assignments and plan out my day in. Any suggestions to a good planner that can help me make my life less stressful and hectic?

lilbrian697 asked:


Cyberproblem: Prepayment vs. Investment Analysis.
In managing one’s own finances, as well as those of a business, there are numerous decision situations where applications of “Time Value of Money” (TVM) concepts and methods help one assess the financial consequences of alternative courses of action. One such situation is the decision to prepay part or all of one’s mortgage or loan balance by making extra periodic principal payments. As one makes extra principal payments, the loan balance is reduced faster. This means you pay less interest over the life of the loan and the loan will be repaid earlier (i.e. fewer payments). For example, a person might decide to pay $50.00 per month extra (i.e. if their mortgage payment was $900 per month, they might pay $950 each month, $50 extra) on a mortgage loan. The extra payment of $50 would be applied each month to reduce the principal balance. However, there are important factors to consider before making this decision. For example, if the mortgage loan is on the person’s primary residence, the interest on the loan may be tax deductible. This reduces the net, after-tax cost of the loan.
To consider the financial consequences of this decision, you can search the Internet for free financial calculators, including some that will assist with a prepayment versus investment scenario analysis. Before using a Web site, you will need to amortize the loan you will use as input data for the analysis.

Suppose you purchase a home for $150,000 and obtain a 90% mortgage loan, 30-year maturity, at a fixed annual interest rate of 8.0%, with deferred monthly payments. What is the monthly payment for principal and interest (P&I) on this loan?
The loan amount is $150,000 x 0.90 = $135,000 The calculator keystrokes follow. PV = – $135,000; N = 360 (30yrs x 12 per year); I = 8.0%/12 = 0.6667; FV = 0 (the loan will be paid off at maturity); SOLVE for PMT = $990.62 Note: If you enter the interest rate at 0.6667% per month you get the payment above. If you carry full precision on your calculator, the PMT = $990.62.
The data you will need for the prepayment scenario include the following.
Loan Balance: $135000
Current Payment: $990.62
Additional Payment: $50.00
Loan Interest Rate: 8.0%
Loan Interest Deductibility: YES
Investment Rate Return: 6.00%*
Tax Bracket: 30.00%
Investment Type: After-Tax
*The Investment rate return is your opportunity cost estimate. It is the annual rate you think you can earn on the $50 extra principal payment if you did not make extra principal payments on your mortgage but instead, invested it.
Now visit the website http://www.mortgage-calc.com/mortgage/index.html, and select Prepayment vs. Investment.
a.After 12 months of making extra payments, what will be the loan balance?
b.After 12 months of making the regular payment and investing the $50, what will be the loan balance?
c.Under the regular payment and investing option, excluding the tax due on the interest earned, what is the investment balance after 12 months?
d.Compare the scenarios of investment versus prepayment by examining the 60th payment, which occurs at the end of the fifth year. What is the difference between the (a) interest portion of that payment, (b) tax deduction for interest, and (c) principal balance? Finally, how much is in the investment account?
e.(a) How long does it take to repay the entire loan under the prepayment option? (b) What is the total interest paid over the life of the loan?
f.Compare the total interest paid under each scenario? How much less in interest do you pay under the prepayment option?
g.If you make an extra $50.00 principal payment per month, what are the opportunity cost considerations?
h.What are the relevant cash flows to consider in this decision? For example, do you consider the tax implications and if so, then how?
i.Do you go out to lunch too often? Go to this site http://marketplacemoney.publicradio.org/toolbox/calculators/LunchSaver.htmland use the Lunch Savings Calculator to see how much money you can save by not going out to lunch. If this site does not function for you, search the Internet for a similar calculator. Suppose you usually spend $6.00 a day when you go out to lunch, when bringing your lunch to school/work would only cost you about $2.00 a day. Since there are approximately 20 weekdays in a month, enter that value for the days eaten per month. How much money would you save after 15 years if you could earn a 10% yield on the money you save? If this site does not function for you, search the Internet for a similar calculator. If you do use a different site, provide the URL to your instructor.

j.Suppose your investment account earns an average annual return of 9%, and the average rate of inflation is 3%. Go to this site http://www.nwcu.com/Web_Tools_and_Links/Calculators/Reitrement_Planner/ and use the Save a Million Calculator to see how long it would take to have a million dollars. State your answer in total years. Imagine that you started with an initial investment of $20,000 and made monthly $150 contributions (assume that your deposits are inflated at the average rate of inflation)? If this site does not function for you, search the Internet for a similar calculator. If you do use a different site, provide the URL to your instructor.
*Adapted from:

Brigham, E. F. & Houston, J. F. Chapter 6 Cyberproblem: Prepayment vs. Investment Analysis in Fundamentals of financial management (10th ed.). Retrieved March 10, 2006, from http://www.swlearning.com/finance/brigham/ffm10e/ffm10e.html

chris h asked:


New Market Definitions that you need to learn soon:

CEO –Chief Embezzlement Officer.

CFO– Corporate Fraud Officer.

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.
BEAR MARKET — A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.

VALUE INVESTING — The art of buying low and selling lower.

P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.

BROKER — What my broker has made me.

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER — A guy whose phone has been disconnected.

MARKET CORRECTION — The day after you buy stocks.

CASH FLOW — The movement your money makes as it disappears down the toilet.

YAHOO — What you yell after selling it to some poor sucker for $240 per share.

WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in use.

Fancy That asked:


CEO –Chief Embezzlement Officer.
CFO– Corporate Fraud Officer.
BULL MARKET — A random market movement causing an investor to
mistake himself for a financial genius.
BEAR MARKET — A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING — The art of buying low and selling lower.
P/E RATIO — The percentage of investors wetting their pants as the
market keeps crashing.
BROKER — What my broker has made me.
STANDARD & POOR — Your life in a nutshell.
STOCK ANALYST — Idiot who just downgraded your stock.
STOCK SPLIT — When your ex-wife and her lawyer split your assets
equally between themselves.
FINANCIAL PLANNER — A guy whose phone has been disconnected.
MARKET CORRECTION — The day after you buy stocks.
CASH FLOW — The movement your money makes as it disappears down the toilet.
YAHOO — What you yell after selling it to some poor sucker for
$240 per share.
WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 >> per share.
INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.
PROFIT — An archaic word no longer in use.

Rick asked:


Due to today’s rapidly changing stock market and the financial conditions in industry, the following terms have had to be revised for investors in order to more clearly reflect today’s economic market place:

CEO — chief embezzlement officer.

CFO — corporate fraud officer.

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance the wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING — The art of buying low and selling lower.
P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.
BROKER — What my broker has made me.
STANDARD & POOR — Your life in a nutshell.
STOCK ANALYST — Idiot who just downgraded your stock.
STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER — A guy whose phone has been disconnected.

MARKET CORRECTION — The day after you buy stocks.

CASH FLOW — The movement your money makes as it disappears down the toilet.

YAHOO — What you yell after selling it to some poor sucker for $240 per share.

WINDOWS 2000 — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — an archaic word no longer in use.

jinkies! asked:


I am looking for a fee-only financial planner / tax expert who has expertise in helping day traders optimize their tax situation and other financial aspects of day trading.

I do not want someone who sells investment products or insurance. Period. I need someone who I pay by the hour to help get things organized, to strategize with on the tax situation and to offer advice etc.

Matt Humberto asked:


1) Meeting and planning with existing clients?

2) Cold calling or networking for new clients?

3) Executing trades online?

4) Planning investing strategies for specific clients?

5) Filling out tax forms and other dull paperwork?

6) Catching up on the latest revisions to tax rules, etc.?

Please let me know what you spend the MOST time doing. I’m considering becoming a CFP, but I’m not a very procedure-oriented person. I enjoy exploring strategies for clients, and meeting with clients, but I’m not much of a “fill out papers all day” kind of guys.

Thanks in advance for your help!

ence21mar asked:


The Certified Financial Planner’s Board has strict requirements for CFP’s such as continuing education requirements. I’m wondering if the state of Florida has additional standards on top of the CFP’s Boards.

raymanrevo asked:


I remember reading a stat that said something like 80%+ of financial planners don’t hold investments in the mutual funds they invest their clients’ money into. I can’t for the life of me find that stat.

Would anyone know where I could find a statistic like this or what the statistic is? I’d appreciate some help since Google seems to be failing me in this area.

sam asked:


What is the best place to search for hourly fee based financial planners / investment advisors?