Can anyone really financially plan all the way up until retirement? That’s a question I thought I knew everything I needed to know when it came to finances, I’ve been paying my own bills, saving money, and not having massive amounts of credit card debt since I’ve been 18. I’m really glad I thought wrong, I would have never thought so much went into planning not only for the now but also planning for the future. After taking this class I realized that I really only knew the basics, I got to learn so much more about financial planning, investing in stocks, and even retirement and estate planning. When I first heard the words financial planning I just thought of the basics, not spending all your money, saving money back and not digging yourself
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I loved learning about all of the different types of stocks, from the blue chip stocks that are typically safe bets, large cap stocks that are in excess of 10 billion dollars and income stocks which have higher than average dividends, just to name a few. I was aware that people purchased stocks to “buy low and sell high”, I wasn’t aware about the facts some stocks paid extra dividends, I also knew that when you became a shareholder you owned a small part of the company, I didn’t know that since you’re a shareholder that you have a say when it comes to electing the board members. According to Yahoo Finance “there are a couple of important things to take into consideration before investing in the stock market think long term money only, moderation, use mutual funds, don’t try to time the market and lastly, there are no rules” (“Beginning Stock Investor?”). Remembering these important tips can help you in your journey to successfully investing in stocks. We learned that there are different formulas for deciding on weather or not a stock is a good buy, one of those things were the earnings per share, that’s when you take the earnings and divide it by the number …show more content…
473). According to CNN money it’s never too early to start planning your estate, the first thing you should do is to take an inventory of all of your assets, “These include your investments, retirement accounts, insurance policies real estate, business interests and valuable items” (“It 's Never Too Early to Start”). If you leave your estate to your spouse you can do so and it will be tax free, other wise your estate will only be taxed if it exceeds more than 5.45 million as of 2016. When it comes to wills CNN money states that “everyone needs a will that way your loved ones will know how to distribute your wealth, and no one wants to die intestate which means dying without a will” (“It 's Never Too Early to Start”), that means you will have no say so in how your wealth is distributed. As long as your finances are simple CNN money states that “you can use a website such as Legalzoom” (“It 's Never Too Early to Start”). The final thing I’m going to cover in estate planning are trusts, trusts let you place conditions on how your wealth is distributed after you die they can help minimize the taxes incurred. Trusts are either revocable or irrevocable, revocable means you can still make changes to your trust, although once your trust becomes irrevocable then you can no longer make changes to it, if you decide to make changes to it then the
I loved learning about all of the different types of stocks, from the blue chip stocks that are typically safe bets, large cap stocks that are in excess of 10 billion dollars and income stocks which have higher than average dividends, just to name a few. I was aware that people purchased stocks to “buy low and sell high”, I wasn’t aware about the facts some stocks paid extra dividends, I also knew that when you became a shareholder you owned a small part of the company, I didn’t know that since you’re a shareholder that you have a say when it comes to electing the board members. According to Yahoo Finance “there are a couple of important things to take into consideration before investing in the stock market think long term money only, moderation, use mutual funds, don’t try to time the market and lastly, there are no rules” (“Beginning Stock Investor?”). Remembering these important tips can help you in your journey to successfully investing in stocks. We learned that there are different formulas for deciding on weather or not a stock is a good buy, one of those things were the earnings per share, that’s when you take the earnings and divide it by the number …show more content…
473). According to CNN money it’s never too early to start planning your estate, the first thing you should do is to take an inventory of all of your assets, “These include your investments, retirement accounts, insurance policies real estate, business interests and valuable items” (“It 's Never Too Early to Start”). If you leave your estate to your spouse you can do so and it will be tax free, other wise your estate will only be taxed if it exceeds more than 5.45 million as of 2016. When it comes to wills CNN money states that “everyone needs a will that way your loved ones will know how to distribute your wealth, and no one wants to die intestate which means dying without a will” (“It 's Never Too Early to Start”), that means you will have no say so in how your wealth is distributed. As long as your finances are simple CNN money states that “you can use a website such as Legalzoom” (“It 's Never Too Early to Start”). The final thing I’m going to cover in estate planning are trusts, trusts let you place conditions on how your wealth is distributed after you die they can help minimize the taxes incurred. Trusts are either revocable or irrevocable, revocable means you can still make changes to your trust, although once your trust becomes irrevocable then you can no longer make changes to it, if you decide to make changes to it then the