Financial Analysis in Personal Financial Planning

Transcription

1 UCLA Department of Business & Management Financial Analysis in Personal Financial Planning X Summer 2012 Daniel F. Casey, MBA, PFP, CFP Financial Planner Westlake Financial Advisors LLC Phone: (805) dcasey@fwg.com Skype: dfcasey Course Description: This course covers the basic analytic tools and mathematical techniques used in personal financial planning and introduces the economic concepts underlying the profession. Topics include percentage calculations, family cash flows, basic corporate financial statements, interest and compound growth, understanding the financial section of the newspaper, bond yield calculations, internal rate of return, net present value, basic statistics, and equity analysis. Economic concepts covered include national income accounting, the Federal Reserve System, economic indicators, recession, depression, inflation, deflation, supply and demand, and the money supply. HP-12C calculator required. This course is a prerequisite for all other courses in the Professional Designation in Personal Financial Planning. May be taken prior to or concurrent with X Survey of Personal Financial Planning. Students with demonstrated ADVANCED knowledge in this area should obtain permission to take an alternative course. In order to understand the numerous concepts presented, it is necessary stay current with reading and homework assignments Required Readings: Course Text and Materials: Hewlett Packard 12C Calculator HP-12C Owner s Handbook and Problem Solving Guide Hewlett Packard Pub Understanding Your Financial Calculator By James F. Dalton (Kaplan) 4th Edition

2 Recommended Readings: Wall St. Journal Grading: Course grades will be based on quizzes, participation and tests as follows: 25% Quizzes 15% Class Participation 25% Midterm 35% Final A B C D Please note that ALL COURSE GRADES ARE FINAL. Don t rely on the course gradebook to determine your grade as the gradebook does not give the proper weighting to the various grade categories. Note that 15% of your grade is from class participation. These will be the easiest points that you can get. All you need to get these points is to have at least one meaningful post in the discussion area per week. Don't miss a week. I typically have at least one student that fails to participate, which brings down their grade, and then they complain that they got B's on the tests, but a C in the class. Don't complain, participate. In the case of a borderline grade, I use the participation as the tiebreaker. Participate! Quizzes all have deadlines, which is generally the Sunday following the end of the week the quiz is for. This is ample time, quizzes will be unavailable once the deadline is hit, so be sure and get your quizzes in on time. If you have a unique situation, such as travel, let me know and we can work around. I developed this policy to insure your success, as I have found that once students fall behind in online classes, they seldom recover. Also note any final received after the deadline, if accepted will be penalized 10 points per day late regardless of reason, so plan ahead and get your final in on time. Let me repeat my comment on grading, keep in mind that once the class ends, the grades will be weighted according to the table above, so the total points that you see in the grade sheet is not necessarily a reflection of your actual grade.

3 Weekly Schedule UCLA - Financial Analysis in Personal Financial Planning Online Spring 2012 Below is the week by week schedule for Online Financial Analysis, which lists your reading assignments for each week, and deadlines for midterm and final. In addition to the Dalton text there will be some supplemental reading on economics that will be posted starting with the second week. Note the CFP Exam Topics refer to the CFP list of topics that are covered on the CFP exam. The complete list of topics can be found at and I have a copy in the Misc. Documents folder as well. You don t need to do anything relative to the topic list; it is just for your information. Now, here is what you can expect in a typical week. The lecture with the exception of week 6 (midterm week) & week 10 (finals week) will be generally be posted on Wednesday. The quiz or if it is week 6, the midterm, or week 10, the final will generally be made available on Saturday. For the quizzes and the midterm, you will have about 8 days to take the test. That is for the first week, the quiz will be made available on Saturday, June 30 th, (although sometimes the first quiz is not posted until Sunday) and you have until Sunday July 8 th at midnight Pacific Time to complete the first quiz. Similarly, future quizzes will be due on the second Sunday. I may give you the due date when I make the quiz available, but I may not. In any case you have about a week with the quiz due the Sunday of the following weekend. It is your responsibility to get the quizzes successfully submitted in a timely fashion! After you submit it, you should be able to open it, review your answers, and see correct answers. I recommend that you take the quiz a few days early so you stay current with the material being discussed, but you have a few extra days if you need it. Again, you are responsible for completing your quizzes and test in a timely manner. This includes technical reasons such as the server being down etc. Successful students are generally those that are first to take the quizzes. With that said, don t open the quiz until you are prepared to take it and have an adequate time slot to complete it. Note that once you open a quiz, you must be prepared to complete it in the time allotted to that test. For quizzes or tests that are submitted late 5 points will be deducted for each day late, if accepted. Quizzes and tests will be made unavailable after their due date, so plan ahead to take them on time. If you have a situation that prohibits you from taking a test on time, such as travel, let me know before the week starts to request an extension, or to have me post the quiz early. Note I said before the week. Being timely on the quiz allows for us to discuss quiz questions while they are still current, as well as I have learned from years of teaching this class, that one of the keys to success in online classes is staying current. In the online format we do have the ability to be flexible, to work around some unique schedules, however I have seen that that same flexibility can get you into too deep of a hole to dig out of so it is very important to stay current, which the quizzes are intended to facilitate.

4 Week One: June 27 th : Course Introduction, Introduction to the Hewlett Packard 12C, Percentage functions, Basic Economic Supply and Demand Theory CFP Exam Topics: 10, 11 Reading Week 1: HP-12C Ch. 1-2, Appendix A; Dalton pg Dalton Problems: 13, 15, 16, 17, 18, 20, 21, 22, 24, 25, 26, 27 Week Two July 4 th : Postwar Economy, CFP Exam Discussion, Basic Time Value Concepts, Compound Interest, Future Value, Present Value CFP Exam Topics: 10, 11 Reading Week 2: Dalton Formulas* Pg , Dalton 20-29, Dalton Problems: 28, 29, 30, 31, 33, 34, 36, 37, 38, 39, 70, 72, 73, 75, 76, 78, 79, 82, 88, 90 *The CFP Formulas for your reference only; these are the formulas that are tested on the CFP exam, and I wanted you to be aware of them. Note they have been updated since the text was printed; the new page is in the Misc. Documents area. We will be reviewing a number of them as the class progresses, but I will not be testing them separately. Week Three: July 11 th : Annuities, Mortgages, Term Calculations, The Federal Reserve, Financial Statements CFP Exam Topics: 13, 14 Reading Week 3: HP 12 C Section 3; Dalton: 30-40, 47-48, 58-67, Dalton Problems: 40, 42, 43, 45, 46, 48, 49, 51, 52, 54, 56, 57, 58, 60, 67, 68, 69, 94, 96, 97, 99, 100, 102, 103, 106, 118, 120, 123, 124 Week Four: July 18 th : Internal Rate of Return, Uneven Cash Flows, Serial Payments, Monetary Policy CFP Exam Topics: 10, 11, Reading Week 4: HP 12 C Section 4, Dalton: 41-46, 55-57, 70-72, Dalton Problems: 61, 62, 63, 64, 65, 66, 133, 134, 135 Week Five: July 25 th : Inflation Adjusted Cash Flows, Education Planning, Retirement Planning, Fiscal Policy CFP Exam Topics: 8, 10, 11, 59 Reading Week 5: Dalton: 68-69, Dalton Problems: 127, 128, 129, 130, 131, 132 Week Six: August 1 st : Review/ Midterm Exam, due August 12 th

5 Week Seven: August 8 th : Bonds: Yield to Maturity and Yield to Call, Duration, Consumer Demand CFP Exam Topics: 34, 38, 41 Reading Week 7: Dalton: Dalton Problems: 136, 137, 138, 139, 140, 141, 142, 143, 144, 147 Week Eight: August 15 th : Statistics: Mean, Geometric Mean, Variance and Standard Deviation, Holding Period Return, Beta, Performance Measures, Weighted Average, Capital Preservation, Purchasing Power Preservation, Standard Deviation of a Two Asset Portfolio, Demand Cont. CFP Exam Topics: 35, 36, 37, 40 Reading Week 8: HP-12C Section 6, Dalton: , Dalton Problems: 112*, 113*, 114*, 148, 149, 150, 151, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 184, 185, 186, 187, 189, 190, 192, 205 *capital preservation and purchasing power preservation Week Nine: August 22 nd : Valuation Models, Time weighted versus Dollar weighted, Tax Adjusted Returns, Constant Dividend Growth Model, Perpetuities, Capitalized Earnings, Supply, and Monte Carlo CFP Exam Topics: 37, 40, 43 Reading Week 9: Dalton: , , Dalton Problems: 166, 167, 168, 169, 170, 171, 178, 179, 180, 181, 183, 193, 194, 195, 196, 198, 199, 201, 202, 203 Week Ten: August 29 th : Review/ Final Exam Note there are some advanced problems, , which would be good practice problems. Note: The Final Exam must be submitted by Sunday September 9 th! This gives you a few bonus days after the class ends, so please Plan Accordingly! The points for any final not submitted by September 9 th (if accepted) will be dropped by 10 points per day late. That is if your final is submitted Tuesday September 11 th, I will subtract 20 points from your score on the final. Note this is for any reason including computer problems, illness, etc. As you know your computer or internet connection are much more likely to fail when you are rushing to meet a deadline, so don t procrastinate. To that extent I recommend you get your final in well ahead of the deadline. I have noticed that the probability of technical issues with submitting your final greatly increase the day of the deadline, so get in the practice of taking your quizzes and tests well ahead of the deadline.