Money Management Skills



Lecture 12: Putting Your Financial Plan Together

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much would the loss of an asset affect your overall wealth?

Investment Policy Statement

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valuable because it forces you to identify your goals and then create

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as a commitment device, because you decide ahead of time how

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risk, this makes it easier to accept the inevitable ups and downs in

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% The advantage of using an investment policy statement is that

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state of mind—people are always more rational when thinking

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when you might be tempted to take more risk, you simply follow

the plan and buy more bonds with your stock gains to rebalance

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Financial Planners

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many decisions that result in losses from bad investing, expensive

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having a planner who can serve as a rational sounding board or can

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the state, and there are no standards for education or knowledge to

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