StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Personal Financial Planning by Lawrence J. Gitman - Book Report/Review Example

Cite this document
Summary
In the paper “Personal Financial Planning by Lawrence J. Gitman” the author analyzes the book, which relates to personal financial planning in a way that all material included in this book talks about different issues related to finance, such as, foundations of financial planning…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Personal Financial Planning by Lawrence J. Gitman
Read Text Preview

Extract of sample "Personal Financial Planning by Lawrence J. Gitman"

 Personal Financial Planning by Lawrence J. Gitman The book that I selected for review is ‘Personal Financial Planning’. The authors of the book are Lawrence J. Gitman, Michael D. Oehnk, and Randall S. Billingsley. The book consists of six parts and each of those parts has two to three chapters. The book relates with personal financial planning in a way that all material included in this book talks about different issues related to finance, such as, foundations of financial planning, management of basic assets, management of credit, and management of insurance needs. I have gained a huge amount of knowledge about financial planning through this book. Every part and every chapter of the book has provided me with in-depth information about different financial issues that hold critical value in the life of any individual. I would say that I have a very basic knowledge of personal finalcial planning before reading this book. However, after reading this book thoroughly, I have gained an insight into a wide range of financial issues, which can help me manage my personal and professional life in a better way. From the first part of the book, I learned about the foundations of financial planning. This part contained three important chapters, which included understanding the financial planning process, developing financial statements and plans, and preparing taxes. In the first chapter, I learned about the overall financial process and issues associated with it. I learned about the ways to spend money wisely by anticipating the currents needs. I also learned about the relationship between money and happiness. Some core concepts that I understood in this chapter included wealth, financial assets, tangible assets, steps in the financial planning process, role of money in a person’s life, three types of financial goals, employee benefits planning, and tax planning. The next chapter was even more interesting for me as compared to the previous one as it helped me understand the concept of financial planning in a practical way. In this chapter, I learned the way to develop my personal financial statements and plans. I understood different types of financial plans and statements, as well as the way to prepare a balance sheet. I also learned the ways to prepare personal income and expense statements. I understood the way to develop an effective record keeping system and the ways to use ratios for the interpretation of financial statements. Moreover, I understood the concept of time value of money and learned the way to construct a cash budget. The third chapter was about preparation of taxes. In this chapter, I learned about the federal income tax principles, the ways to calculate the personal taxable income, as well as the calculation and filing of taxes. The tax return worksheets helped me develop a practical understanding of these issues. Moreover, I also learned about the concept of effective tax planning and the process of tax calculation. From the second part of the book, I learned about the management of basic assets. This part consisted of fourth and fifth chapters of the book. The fourth chapter was about the management of personal cash and savings. In this chapter, I learned about the role of cash management in the process of personal finance planning. I also learned about the phenomenon of today’s financial services marketplace. Some other practices that helped me develop a good understanding of core financial issues included the way to maintain a checking account and establishing a personal saving program. The fifth chapter included in this part of the book was about automobile and housing decisions. This chapter helped me learn the ways to lease a car and buy it if needed. I also learned about property buying process. I understood the difference between lease and purchase decisions based on costs of both decisions. Similarly, I understood the difference between rent and buy decision based on cost. Moreover, I learned about financing of transactions and the concepts of home affordability analysis and mortgage refinancing analysis. From the third part of the book, I learned about the management of credit. This part consisted of sixth and seventh chapters of the book. The sixth chapter was about the use of credits. In this chapter, I learned about the basic concept of using credit. I also learned about open account credit, credit cards, open forms of credit, and the way to use the credit effectively. The seventh chapter was about the use of consumer loans. In this chapter, I learned about the ways to manage credit and obtaining single-payment and installment loans. I also learned about the basic features of consumer loans. From the fourth part of the book, I learned about the management of insurance needs. This part consisted of eighth, ninth, and tenth chapters of the book. The eighth chapter was about life insurance in which I learned about insurance concepts and policies, key features of life insurance, the need to buy life insurance, the way to buy life insurance. The ninth chapter was about health insurance in which I learned about health insurance plans and decisions, long-term care insurance, and disability income insurance. In the tenth chapter, I learned about the ways to protect my personal property. This chapter highlighted the concepts of property insurance, automobile insurance, homeowner’s insurance, and settlement of claims. From the fifth part of the book, I learned about the management of investments. This part consisted of eleventh, twelfth, and thirteenth chapters of the book. The eleventh chapter was about investment planning in which I learned about the basic objectives and benefits of making investments, the way to become informed investor, online investment process, and the concept of securities markets. The twelfth chapter was about investment in stocks and bonds in which I learned about the ways to invest in common stocks and bonds, as well as the risks and benefits of such investments. In the thirteenth chapter, I learned about the way to invest in real estate and mutual funds. This chapter made me aware of the types of fund services, as well as the risks and benefits of investing in real estate and mutual funds. From the sixth part of the book, I learned about retirement and estate planning. This part consisted of fourteenth and fifteenth chapters of the book. The fourteenth chapter was about retirement planning in which I got an understanding of social security needs, retirement programs, annuities, and pension plans. In the fifteenth chapter, I learned about preserving of estate. This chapter made me aware of the principles of estate planning, as well as the way to calculate estate taxes. Moreover, I also gained an insight into federal unified transfer taxes and estate planning techniques. Works Cited Gitman, Lawrence, Michael Oehnk, and Randall Billingsley. Personal Financial Planning. 12th ed. Mason: South-Western Cengage Learning, 2011. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Personal Financial Planning by Lawrence J. Gitman Book Report/Review, n.d.)
Personal Financial Planning by Lawrence J. Gitman Book Report/Review. Retrieved from https://studentshare.org/finance-accounting/1605833-finance-personal-financial-planning-book-report
(Personal Financial Planning by Lawrence J. Gitman Book Report/Review)
Personal Financial Planning by Lawrence J. Gitman Book Report/Review. https://studentshare.org/finance-accounting/1605833-finance-personal-financial-planning-book-report.
“Personal Financial Planning by Lawrence J. Gitman Book Report/Review”, n.d. https://studentshare.org/finance-accounting/1605833-finance-personal-financial-planning-book-report.
  • Cited: 0 times

CHECK THESE SAMPLES OF Personal Financial Planning by Lawrence J. Gitman

Good Financial Engineering Skills

I also have a lot of knowledge about various engineering, applied mathematics, finance, and economics tools that are frequently employed in problem solving techniques used in strategic planning, risk management, and investment.... Personal statement: I am extremely desirous of learning good financial Engineering skills.... In order to run the business in the competitive market scenario, it is imperative that I equip myself with good skills on the financial side of the business as well....
1 Pages (250 words) Personal Statement

Personal Statement for Applying University of California

My father's insufficient knowledge and skills in financial control were my earliest cues to pursue economics to professional level.... His investment performed poorly in the stock markets during the financial crisis (downturn).... Your Instructor personal Statement What is your intended major?...
4 Pages (1000 words) Personal Statement

Master of science, financial engineer personal statement

I am interest in applying for the master's degree program in financial engineering.... want to pursue a degree in financial engineering because this is a growing field that has plenty of jobs available due to the fact that there is a shortage of professionals trained in this field.... All engineering projects require the assistance of accountants and financial people.... As a financial engineer I can become the bridge that connects the engineering and accounting/finance departments....
4 Pages (1000 words) Personal Statement

Project Study 01 - Personal Objective Strategy Con't

I appreciate the importance of Dreaming Well in the achievement of career objectives, and my personal Dreaming Well goal is to have a clear understanding of my strategic career objectives by Nov 30, 2011.... esides personal analysis, my dreaming well plan accommodates my primary target firm Nestle, where I realise particular interest in environmental sustainability (Nestle Sustainability Review 1-5) which bodes well with my strengths; hence strong specific synergies....
20 Pages (5000 words) Personal Statement

Personal Statement for Scholarship

Helping autistic children, planning activities for them, and researching and planning marketing for the Group needed not only creativity, fresh perspective and maturity, but also a lot of patience.... My next job at Xing Hua Accounting Firm in Beijing gave me a totally different experience as it was all about handling the responsibilities of financial department, where I learnt how to maintain the financial responsibilities of a company....
3 Pages (750 words) Personal Statement

Personal reflections

world like to play a fundamental role in the ministry of finance and planning.... world like to play a fundamental role in the ministry of finance and planning.... The fact that, the country's economic structures and patterns remain questionable since they provided a conducive enrolment for individuals to loot public funds, I will endeavour to implement technological financial and planning applications to ensure lucidity and accountability of the use of the public funds....
1 Pages (250 words) Personal Statement

Personal Development Planning in Nursing

The paper "Personal Development planning in Nursing" describes the career analysis and planning for 3 years.... The author of the paper provides a detailed description of every year starting from the self-development ending with the professional improvement.... hellip; With the evolution and expansion of nursing into new territories as observed by Turner (2007), there is a need for nurses to maintain updated skills and knowledge base....
1 Pages (250 words) Personal Statement

Personal Attitude to Finances

However, managing finances and accounts could lead to huge financial lose due to unbalanced… Growing up in Shenzhen in a family where my parents owned a large company, Burnham Asset Management Limited, I had my fair share of the experience where finances were mismanaged and the accounts data did not match up.... It was then that I received an It was this act of witnessing people around me falling into financial troubles leading to depravation of their happiness that I knew I should head towards a direction that would bring smiles back on their faces and improve the entire trade by ensuring fair and realistic mechanisms are in place....
4 Pages (1000 words) Personal Statement
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us