The two lowest scores i had got from chapter 10 was ‘’Explain why individual retirement
accounts (IRSs) offer advantages over taxable savings accounts and annuities.’’ Then in
chapter 11 was ‘’Evaluate portfolio performance relative to a similarly diversified
benchmark index.’’ These two that i score the lowest on are important to learning about my
personal finances because chapter 10 talks about retirement and 11 talks about portfolio
performance. I would want to know more about these two because I got a low score so that
means these are my weak areas that I need to focus more on.
By doesn't the retirement calculator if i'm doing it correct it doesn't look so good in my
retirement days. But a way i could really start saving is the way i've seen throughout social
media but writing numbers on envolopes and putting money in there either each day or
week. Keeping all types of change and small bills like 1’s and 5’s every now and then drop
a 10 or 20.
I completed the "How Risk Averse Are You?" and my results were 14, meaning I am a
relatively moderate investor. I feel that is what i would be, because i'm not too straight
forward but not too shy, i want to do what's best without losing everything or getting
nothing.
Unfortunately I am using federal help with school, because if it wasn't for that i wouldn't be
here doing his paperwork. If I knew that my payback payments were too much for me I
would call and request a lower comfortable payment plan, and when I have extra money I
could add more money to the payment.
The college education would affect my long term financial plan by bringing in more money.
I went to school to have a better career, to make the money I wouldn't be making at a fast
food place or stocking shelves. And if I need to repay a loan I had to get to open my
business I would be able to comfortably repay it because I have recycling money coming in.
My lowest score this week was on retirement and how to save for it. I learned a lot this week
with information I should know but do not. My husband and I were never told how to save
for retirement. I guess it is just one of those things that you learn the hard way. I am using
federal loans to go to school and yes, I have looked into ways to lower my payments and be
smart about pay back. I need great credit for loans that I want and I have already made plans
to start paying back the federal loans before graduation. My college education will help me
not only to get a better job, with better pay but it will also help my family. With a better job
and higher educations, I will be better able to be to choose more wisely a job that will be
best for my family and my life with them. Everything I am doing right now is to better my
life for them and the family that I have to come. So much information in this weeks material,
and my head hurts. Chapter 10 was my strongest performance thus far and feel super
confident about it. Chapter 11 however is a lot. There are a lot of different types of major
investments and I got all them mixed up. Some are similar with little differences and others
are just entirely different. I have reread through them and got a good grasp on their
advantages and disadvantages as well, which helps me understand a lot better.
I completed the "How Risk Averse Are You?" and my results were an 11, meaning I am a
conservative investor. I am not at all surprised. I like knowing how much money I have and
how much I can have without that fluctuating. I get super nervous even going to a casino. I
do however think this week helped me look into and research more on the different types of
investment. This does interest me tremendously and puts my mind at east knowing all the
different types to choose from.
I think my college education will enhance and greater my long-term financial plan. I will
have loan debt to repay, but I have been in touch with my loan people to figure out my
repayment plan early and maybe start making payments before I am done with school. I
knowing paying back my loans will strain and even pause other household needs, but end
game college education to me is always worth it. My expected future income looks very
promising and I have a attitude and need to be the best at what I do. I am confident in my
abilities and skills to get me to where I want to be and need to be. The area that I scored the
lowest in was from chapter 11 regarding developing a realistic investment plan to meet your
long-term financial goals, taking into account budgetary constraints, transaction costs, and
taxes. Investing is an important area to understand, because that is how you get your money
to work FOR you. I know this is an area that I need to work on so that I can figure out how
best to invest my money to get the best return and the most from it. After entering my
information into the retirement calculator, I actually feel like I’m on a good track at least
with my 401K contributions. I started my 401K six years ago and have been trying to figure
out if the amount I’m putting in every pay period is enough or not. Seeing this calculator
gives me a good idea of where I am at and lets me know I am doing pretty well. Knowing
that my salary will only continue to increase with time, I know that these are only tentative
numbers based on my current salary and not necessarily based on the possibilities of
increases in salary. After taking the How Risk-Averse Are You assessment, I scored a 15,
which states: “You are a relatively moderate investor. You will want to take a diversified
approach to asset allocation, with moderate allocation to stocks balanced with short and long
term fixed securities.”. I feel like this is a relatively accurate description of how I feel as an
investor – if/when I were to invest. I know that investing money anywhere other than just in
my savings account is a risk, and if I am prepared to take that risk, then I would like to be
slightly aggressive with my investments. However, only investing money that I can actually
afford to lose in the worst case scenario. I am currently paying for school using federal
student loans and I believe if I stopped right now, my average monthly payment would be
over $550/month. If I were to take on this monthly payment today, it would be too much for
me to be able to handle. However, the idea is that in the future, after I am finished with my
degree, this will earn me a better job with (hopefully) close to double the salary that I make
now, which will help my student loans be more affordable. Also, my husband and I are
making smart decisions right now with our money, staying in a home that is very much
affordable for us, we don’t have any car payments and we don’t have any other outstanding
debt besides my student loans and our mortgage. We pay off all of our credit cards every
month and do not leave any of that outstanding. We can absolutely start making payments
towards my student loans before I am even out of school, which will help lower this cost in
the long run too. How risk averse are you, I scored an 11, I am a conservative investor,
which did not surprise me at all. I have always been weary of anything that comes off as a
gamble to me financially. I enjoy knowing exactly what's what all the time and conservative
investing sounds like the way. Although I'm more then aware what a great investment can do
I am also aware of how terrible a bad investment can ruin a life, not to be dramatic. I began
investing very small amount last year with different companies, and I mean small, $5, $10,
$15, $20 max. I believe this is also due to me not being well versed in investment info so I
never want to overdue anything for now till I learn more, I do believe though as I have
noticed, the more I learn the more I still believe conservative investing is the way to go.
College will affect us in the future in various ways financially and otherwise. I'm sure we all
hope we begin a career that can pay off college. I have a friend who became late on her
payments and it began coming out of her payroll check automatically. I believe starting to
make payments on financial aide as soon as you can is best, no need to wait till you are
completely out of school. Work on it now so in the future you will be almost done with
payments as soon as possible so it does not start ruining things financially.Right now my
monthly payments would be about $375, so another monthly bill. I of course know this
number could be higher but in that same light it could be lower! I have told myself I do not
want to get to the point of deferring my loans to a third party, but that will be my last resort
if things go wrong. I currently believe I am grasping a good hold on my monthly expenses
as they have changed during the last year. Once I am back in my financial groove I will
begin making small payments and raise the amount I pay as I go. My college education
affects my long term plan (hopefully) by allowing me to get a higher-earning job. Enabling
me to save more, and have a more comfortable quality of life. My loan's are mostly covered
by Stafford grants and self-funding, so as for loan repayment it will not have a lasting
impact on my long-term finances.
As mentioned above my loans will not have much of a long-term impact on my finances, my
monthly payment will be ~$250 (more than my minimum, and what I can currently afford
past my expenses). Hopefully, with my future income level with the degree this amount can
be raised to pay off my loans in a much shorter time frame. If that amount becomes non-
viable, deferring my loans through a third party is always an option.When discussing
investments for retirement and risk, I've always found myself to be very risk-averse. I've
never been interested in risky stocks or gambling. Blue chip is the most dependable, and you
can count on that income. From my history as a server, I have a strong respect for having
dependable consistent income. One concept that I had gotten from chapter 10 would be that
I know noting about retirement, where to start or how to form one. One concept I had gotten
from chapter 11 would be that I do not much but more than chapter 10, in which honestly I
did better than I assumed. As for chapter 10 I had scored the lowest on in which is it actually
the lowest I have ever scored. Meaning I have a lot to learn about retiring and how it works
to get there. As for chapter 10 I honestly have no idea how it would be important to my
personal finances rather than being able to stay home and be paid for it when I am old. As
for chapter 11 I would say it is important to my personal finances, as investing something
such as stocks, my money would increase over the years. I would have to do more research
of course as well as knowing what to do when to do it and knowing what type of stock(s) I
would like to invest my money is as well as knowing not everything will make money but
also having faith into the company you chose to invest your money in. I would definitely
love to know more about stocks and investing in general as it is something I have always
been interested but I have not had the time to look furthermore, because of my busy
schedule.For the activity of how risk averse I am, I had scored a 15. It had explained to me
that I am a "relatively moderate investor, as I should take an approach to asset allocation,
with moderate allocation to stocks balanced with short and long term fixed incomes
securities". I sort of understand what is being suggested, but not completely as I would like
to do more research to see if taking an approach to asset allocation would be a better option
that would best suit me all together.For the activity of behavioral and retirement planing, my
scores showed that I am influenced by psychological biases, which I had answered more
with a's and b's. Furthermore explaining that I am expecting the "normal" such as dying at
the average age, as I am apparently saving too little when it comes to money, and not being
prepared for happenings such as divorce if it does seem to happen. I assume it is suggesting
that I should expect the unexpected in a way? or not be so blind and stubborn to look at
reality for what it is and always be prepared for the worst? Honestly I am not 100% of what
it is suggesting with that one as I feel like I would never want to expect the worse when it
comes to something like a divorce, as I understand what it is saying but at the same time you
should not always have to look out for the worst in things. One of my favorite things we
have ever done in this class is the retirement calculator. It has shown me that I am on the
right track with how much money I contribute to my savings fund without stretching my
finances. I make it a priority to save and be frugal with my money! I see myself investing in
precious metals, especially since our money is not back by gold. After receiving my
Interactive Figure: How Risk Averse Are You?, I scored a 14. The results show that I am a
moderate investor, and I feel that the score is accurate. I understand that there are always
risks when investing in the stock markets and your future, but you have to spend money or
risk money to make money. My job is to reimburse my program through UOPX. I am very
grateful for this opportunity. When I would be paying off a typical loan, I plan to put my
money into my savings. I hope that by doing this, I can eventually prepare to purchase a
house or condominium, depending on my situation in life. I was unfamiliar with all of
chapter ten. It was quite the eye opener. I am grateful to be exposed to this chapter's
information regarding retirement. studying the chapter has broadened my perspective on
investing in a retirement plan. A retirement plan is fundamental for living comfortably in my
later years. a After completing the How Risk Averse Are You? interactive figure I discovered
that I am a 13 based on the scoring chart. I am in the moderate investor category. This is not
surprising as I do not prefer to take unnecessary risks with my money, such as gambling.
Diversifying my asset allocation in the future is something I would be very comfortable in
doing.Completing my college education would be just one step in my long-term goal of
financial freedom, however it would be both beneficial and detrimental. It would be
detrimental in that I would have a large school debt that would need to be paid off in the
form of monthly installments. Having said that, It would open possibilities for increasing my
annual income. I did very well on chapter 10, however with chapter 11 it was a complete
fail. I have never really had any interest in stocks, bonds, and retirement savings. I have
always just had a 401 (k). My lowest score in chapter 10 was "explain how employer-
sponsored retirement plans and social security can help you meet your retirement goals. A
little bit ironic that I have always had a 401(k) and yet this is my lowest score. I do truly
believe in these type of retirement plans. You can add an amount that you are comfortable
with and it is kind of out of sight out of mind. I hope Social Security is still around when I
am of age to take advantage of that benefit. I want to plan for my retirement not needing the
social security benefit, that way if it is still available it will be like a bonus.
Now lets talk about chapter 11. My lowest score was on "develop a realistic investment plan
to meet your long term financial goals, taking into account budgetary constraints, transaction
costs, and taxes. This concept I believe would be a huge benefit for me. I want to buy a
house in 3-5 years, so I think making a investment plan would benefit me greatly.My college
education will for sure affect my long-term financial plan. In one way it will add more debt
and another payment. On the other hand, it will opportunity. I hope it will open more doors
of higher salary positions. I love my career field and I look forward to seeing where it takes
me. It was chapter 11 that showed my deficiency in stocks and many things associated with
this. To be frank, I honestly have never taken the time to truly learn about stocks. Like most
people, I have a general idea of how the concept works but not formal knowledge of the do's
and don'ts. I feel as though I should take the time and learn more. I think it is a good way to
build up and fund money into retirement budgets and maybe even larger investment venture.
Moving forward, this is something that I will discuss with my wife and comb over the
budget to see the toll it would take to invest. I am a pretty low risk type of guy and it doesn't
sit to well that I don't have control over how a stock performs. This may be something that I
turn to an advisor for. All in all, I am slowly moving towards trying the stock market
personally, but I cannot lie and say that it doesn;t make me feel uneasy.
Currently like most students in America, I have taken out loans to fund my college
education. As it stands my monthly repayment is in the range of $274 dollars. I have began
making this payment and so far it has not strained the budget. Unlike many, I did not wait
until I was unable to afford the payments. I called the lender and got them deferred because
I am currently enrolled. This helped because it gives me the opportunity to pay down the
interest before graduating. I am seeking other ways to fund my education because this type
of debt can be daunting. I am seeking grants and scholarships and, if any overages, using
that money to repay the student loans. In addition to the immediate budget hit, having this
debt has affected a few long term goals. It has now encourage me to continue working my
part time job as well as the fulltime job. The supplemented earnings from the part time job
helps cushion the blow from the student loans. I had originally planned to leave said job but
then decided against that when I started my educational journey. I now have to continue for
a few more years to offset the student loan debts. Its not hard work but the time could be
used elsewhere. When it comes to college education and how it can affect my long-term
financial plan, I see it as being both positive and negative. While I am working towards a
degree that will help me to make more money in the future I am also putting myself into
debt to intentionally. Not only will this mean that my available money once I start my first
job will be less due to having to pay off student loans, but it will also mean that I will not be
able to invest as much into my retirement while I am paying off these loans.
Talking about risk taking, I have always been someone who avoids risks as much as
possible. I like to know what the outcome is going to be when I do something. I may have a
little bit of a risky bone in me, but I do not have very much. My score from the “How risk
averse are you” interactive figure was fourteen. I believe this is a higher score than I
should’ve gotten. I have never been into taking risks, whether it is with money, time,
physical danger, etc.
a a When I took the “Build your proficiency diagnostic” I did not score well at all. Not only
was chapter eleven my worst one yet, but chapter ten was the second worst one I have
scored on. My worst score on the diagnostic was the category of “Develop a realistic
investment plan to meet your long-term financial goals, taking into account budgetary
constraints, transaction cost, and taxes.” I have always thought of myself as a very good
planner for anything and everything. When I saw that I got every single answer incorrect I
was disappointed in myself. Not only did it make me realize I could work on my knowledge
more, but it made me realize that when it comes to investing and knowing how to correctly
do it I should really research more before I ever decide to invest into anything. One concept
from the Build Your Proficiency diagnostic that I scored the lowest in was chapter 11,
Compare investment choices based on return and risk. This concept would be important to
my personal finances because investing is definitely something we all should be doing
especially for or future. Understanding the different risk and things that come along with
investing is important and I would definitely like to know more about this. I didn't quite
understand the Retirement Income Calculator so I was not able to enter any information. I
am going to look a little more into this. After completing the How Risk Averse Are You
interactive figure my results showed that I am a relatively moderate investor. After
completing the Behavioral Biases and Retirement Planning interactive figure I found that I
am more influenced by psychological biases. I think if the amount is not affordable when
using the federal student loans to pay for college then you can defer the payments if I am not
mistaken for a while. A college education can affect your long-term financial plans because
you have to make payments back to pay off the loan. Even if you defer them you are still
responsible for them and will have to pay them back eventually.
