Choose 3 from reasons 5,6,7 & 8 and describe why these three are most important to you. Additionally, explain how you will incorporate these three reasons into your personal financial plan. Incorporate your knowledge of investments and compounding as well as some of Schor's principles for avoiding consumerism and unnecessary purchases.

500 word minimum

PARTI INTRODUCTION TO FINANCIAL PLANNING PARTI INTRODUCTION TO FINANCIAL PLANNING Reason #5: To Pay for College financial decisions -- and one you'll make many times throughout your life. Should you pay cash, accept dealer financing, or use home equity? Is leasing right for you? To learn the answer, go to Chapter 50. Guess what happens when the kids turn 18? They go to college! Reason #8: To Buy a Home thomas It's estimated that for a baby born in 2010, the cost of college in 2028 will exceed $250,000 for an in-state school and over $500,000 for pri- vate schools, according to the College Board. To learn the proper way to approach the cost of college, turn to Chapter 51. The Cost of a 4-Year College Degree 2010-2014 Penn State $159,525 Maryland $163,672 Berkeley $144,584 Notre Dame $224,419 Harvard $227,480 Georgetown $216,439 Princeton $221,443 Yale $221,137 Assumes 6% annual increase in the cost of tuition, room and board - based on 2009-2010 prices. "Out-of-State tuition Wall Street Journal, permission Cartoon Features Syndicate Americans devote the largest portion of their incomes to housing. Consequently, how you It's a question of priorities, Martha Do you want lots of kids or one with handle the purchase of your home will have a college education? far-reaching implications on virtually every facet of your financial life, including your ability to save, pay for college, and plan for your retirement. For this reason, I devote five chapters (5660) exclusively to this subject, and it's referenced in many other chapters as well, including those dealing with debt elimination (Chapter 49), paying for college (Chapter 51), and the costs of raising children (Chapter 52). FIGURE 1-5 Reason #6: To Pay for a Child's Wedding Reason #9: To Be Able to Retire When - and in the Style - You Want The Cost of A Wedding Consider food. Assuming you and your spouse retire at 65 and live to your nor- mal life expectancy of 83, you're going to eat 39,420 meals in retirement! (That's three meals a day, 365 days a year over 18 years for two people.) If each of those meals costs five dollars, you'll spend $197,100 on food. Where will that money come from? $12,838 $5,847 $3,925 Reception Rings Photography/ Videography Miscellaneous Wedding gown Music Flowers/Decor Invitations Get ready for another major expense: The wedding! According to the wedding website TheKnot.com, the average cost is $28,385 (excluding the honeymoon). Although par- ents of the bride traditionally paid this expense, increasing numbers of brides and grooms and parents of grooms are paying for weddings. $696 $1,134 $1,343 $2,093 $509 Most people are ignorant of this message. Of today's retirees 65 and older, 30% have incomes below $15,000 a year, according to the Social Security Administration. I'm not saying these people never earned more than $15,000 a year while they were working. Rather, their income dropped below $15,000 when they retired. Reason #7: To Buy a Car Total $28,385 The average price of a new car is $28,082, according to the National Automobile Dealers Association. Thus, that purchase is one of your biggest and most confusing Only 20% of retirees earn more than $50,000 a year. Yet the masses didn't plan to fail. They simply failed to plan, because under the old rules, planning wasn't necessary. It used to be that a worker and his family could be comfortable if he retired at 62 on a pension and Social Security. That doesn't happen anymore. Today, you don't retire as young as 62 unless you've been downsized out of FIGURE 1-6 9 PARTI INTRODUCTION TO FINANCIAL PLANNING PARTI INTRODUCTION TO FINANCIAL PLANNING Reason #5: To Pay for College financial decisions -- and one you'll make many times throughout your life. Should you pay cash, accept dealer financing, or use home equity? Is leasing right for you? To learn the answer, go to Chapter 50. Guess what happens when the kids turn 18? They go to college! Reason #8: To Buy a Home thomas It's estimated that for a baby born in 2010, the cost of college in 2028 will exceed $250,000 for an in-state school and over $500,000 for pri- vate schools, according to the College Board. To learn the proper way to approach the cost of college, turn to Chapter 51. The Cost of a 4-Year College Degree 2010-2014 Penn State $159,525 Maryland $163,672 Berkeley $144,584 Notre Dame $224,419 Harvard $227,480 Georgetown $216,439 Princeton $221,443 Yale $221,137 Assumes 6% annual increase in the cost of tuition, room and board - based on 2009-2010 prices. "Out-of-State tuition Wall Street Journal, permission Cartoon Features Syndicate Americans devote the largest portion of their incomes to housing. Consequently, how you It's a question of priorities, Martha Do you want lots of kids or one with handle the purchase of your home will have a college education? far-reaching implications on virtually every facet of your financial life, including your ability to save, pay for college, and plan for your retirement. For this reason, I devote five chapters (5660) exclusively to this subject, and it's referenced in many other chapters as well, including those dealing with debt elimination (Chapter 49), paying for college (Chapter 51), and the costs of raising children (Chapter 52). FIGURE 1-5 Reason #6: To Pay for a Child's Wedding Reason #9: To Be Able to Retire When - and in the Style - You Want The Cost of A Wedding Consider food. Assuming you and your spouse retire at 65 and live to your nor- mal life expectancy of 83, you're going to eat 39,420 meals in retirement! (That's three meals a day, 365 days a year over 18 years for two people.) If each of those meals costs five dollars, you'll spend $197,100 on food. Where will that money come from? $12,838 $5,847 $3,925 Reception Rings Photography/ Videography Miscellaneous Wedding gown Music Flowers/Decor Invitations Get ready for another major expense: The wedding! According to the wedding website TheKnot.com, the average cost is $28,385 (excluding the honeymoon). Although par- ents of the bride traditionally paid this expense, increasing numbers of brides and grooms and parents of grooms are paying for weddings. $696 $1,134 $1,343 $2,093 $509 Most people are ignorant of this message. Of today's retirees 65 and older, 30% have incomes below $15,000 a year, according to the Social Security Administration. I'm not saying these people never earned more than $15,000 a year while they were working. Rather, their income dropped below $15,000 when they retired. Reason #7: To Buy a Car Total $28,385 The average price of a new car is $28,082, according to the National Automobile Dealers Association. Thus, that purchase is one of your biggest and most confusing Only 20% of retirees earn more than $50,000 a year. Yet the masses didn't plan to fail. They simply failed to plan, because under the old rules, planning wasn't necessary. It used to be that a worker and his family could be comfortable if he retired at 62 on a pension and Social Security. That doesn't happen anymore. Today, you don't retire as young as 62 unless you've been downsized out of FIGURE 1-6 9