Find the equation of the line that passes through the points (-2, 1) and (1, -2).

Find the equation of the line that passes through the points (-2, 1) and (1, -2).

The Gordons’ Version of Financial Planning

Burt and Emily Gordon are a married couple in their mid-20s. Burt has a good start as a bank manager and Emily works as a sales representative. Since their marriage 4 years ago, Burt and Emily have been living comfortably. Their income has exceeded their expenses, and they have accumulated an enviable net worth. This includes the $10,000 that they have built up in savings and investments. Because their income has always been more than enough for them to have the lifestyle they desire, the Gordons have done no financial planning.

Emily has just learned that she’s 2 months pregnant. She’s concerned about how they’ll make ends meet if she quits work after their child is born. Each time she and Burt discuss the matter, he tells her not to worry because “we’ve always managed to pay our bills on time.” Emily can’t understand his attitude, because her income will be completely eliminated. To convince Emily there’s no need for concern, Burt points out that their expenses last year, but for the common stock purchase, were about equal to his take-home pay. With an anticipated promotion to a managerial position and an expected 10% pay raise, his income next year should exceed this amount. Burt also points out that they can reduce luxuries (trips, recreation, and entertainment) and can always draw down their savings or sell some of their stock if they get in a bind. When Emily asks about the long-run implications for their finances, Burt says there will be “no problems” because his boss has assured him that he has a bright future with the bank. Burt also emphasizes that Emily can go back to work in a few years if necessary.

Despite Burt’s arguments, Emily feels that they should carefully examine their financial condition in order to do some serious planning. She has gathered the following financial information for the year ending December 31, 2012.

7,500

Salaries	Take-home Pay	Gross Salary
Burt	$44,200	$64,000
Emily	25,048	36,000
Item	Amount
Food	$ 5,902
Clothing	2,300
Mortgage payments, including property taxes of $1,400	11,028
Travel and entertainment card balances	2,000
Gas, electric, water expenses	1,990
Household furnishings	4,500
Telephone	640
Auto loan balance	4,650
Common stock investments		7,500
Bank credit card balances	675
Federal income taxes	19,044
State income tax	4,058
Social security contributions	7,650
Credit card loan payments	2,210
Cash on hand	85
2007 Nissan Sentra	15,000
Medical expenses (unreimbursed)	600
Homeowner’s insurance premiums paid	1,300
Checking account balance	485
Auto insurance premiums paid	1,600
Transportation	2,800
Cable television	680
Estimated value of home	185,000
Trip to Europe	5,000
Recreation and entertainment	4,000
Auto loan payments	2,150
Money market account balance	2,500
Purchase of common stock
Addition to money market account	500
Mortgage on home	148,000

Critical Thinking Questions

1. Using this information and Worksheets 2.1 and 2.2, construct the Gordons’ balance sheet and income and expense statement for the year ending December 31, 2010.

2. Comment on the Gordons’ financial condition regarding (a) solvency, (b) liquidity, (c) savings, and (d) ability to pay debts promptly. If the Gordons continue to manage their finances as described, what do you expect the long-run consequences to be? Discuss.

3. Critically evaluate the Gordon’s approach to financial planning. Point out any fallacies in Burt’s arguments, and be sure to mention (a) implications for the long term as well as (b) the potential impact of inflation in general and specifically on their net worth. What procedures should they use to get their financial house in order? Be sure to discuss the role that long- and short-term financial plans and budgets might play.

وغردونس ‘نسخة من التخطيط المالي
وبيرت جوردون إميلي هي تزوجا في منتصف 20S بهم. بيرت لديه بداية جيدة ومدير بنك وإميلي يعمل مندوب مبيعات. منذ زواجهما منذ 4 سنوات، تم بيرت وإميلي الذين يعيشون بشكل مريح. تجاوز دخلهم نفقاتهم، وأنهم تراكمت لتبلغ قيمتها الصافية تحسد عليه. ويشمل هذا $ 10،000 أنها تراكمت في المدخرات والاستثمارات. لأن دخلهم كان دائما أكثر من كافية بالنسبة لهم ليكون نمط الحياة يشتهون، فعلت غردونس لا التخطيط المالي.
وقد علمت للتو أن إميلي أنها حامل 2 أشهر. انها تشعر بالقلق بشأن الكيفية التي سوف تغطية نفقاتهم إذا كانت إنهاء العمل بعد ولادة طفلهما. في كل مرة هي وبيرت مناقشة هذه المسألة، وقال انه يقول لها لا داعي للقلق لأن “تمكنا دائما لدفع فواتيرنا في الوقت المحدد.” إميلي لا يفهم موقفه، لأنه سيتم دخلها القضاء عليها كليا. إميلي لإقناع وليس هناك حاجة للقلق، بيرت يشير إلى أن نفقات في العام الماضي، ولكن لشراء أسهم عادية، وعلى قدم المساواة في الأجر عن أخذها إلى منزله. مع تعزيز المتوقعة لمنصب إداري ورفع الأجور المتوقعة 10٪، وينبغي أن دخله في العام القادم تتجاوز هذا المبلغ. بيرت يشير أيضا إلى أنها يمكن أن تقلل من الكماليات (الرحلات، والترفيه، والتسلية) ويمكن أن يوجه دائما إلى أسفل مدخراتهم أو بيع بعض المخزون إذا كانت تحصل في مأزق. عندما إميلي يسأل عن الآثار المترتبة على المدى الطويل لأموالهم، يقول بيرت سيكون هناك “أي مشاكل” بسبب رئيسه وأكد له أن لديه مستقبل مشرق مع البنك. بيرت يؤكد أيضا أن إميلي يمكن العودة إلى العمل في غضون سنوات قليلة إذا لزم الأمر.
فعلى الرغم من الحجج بيرت، وإميلي يشعر أنه ينبغي أن تدرس بعناية حالتهم المالية من أجل القيام ببعض التخطيط خطيرة. وقالت انها جمعت المعلومات التالية عن السنة المالية المنتهية في 31 ديسمبر 2012.
الرواتب الأجر المقبوض الراتب الإجمالي
بيرت 44،200 $ 64،000 $
إميلي 25048 36000
البند المبلغ
الغذاء 5902 $
الملابس 2300
دفع أقساط الرهن العقاري، بما في ذلك الضرائب على الممتلكات من 1400 $ 11028
السفر وبطاقة الترفيه أرصدة 2000
الغاز والكهرباء والمياه المصروفات 1990
الأثاث المنزلي 4500
الهاتف 640
السيارات رصيد القرض 4650
استثمارات الأسهم العادية 7500
البنك بطاقة الائتمان أرصدة 675
ضرائب الدخل الاتحادية 19044
الدولة ضريبة الدخل 4058
اشتراكات الضمان الاجتماعي 7650
مدفوعات القروض الائتمانية بطاقة 2210
النقد في الصندوق 85
2007 نيسان سنترا 15000
النفقات الطبية (ترد هي) 600
دفع أقساط التأمين على المنزل 1300
التحقق من رصيد الحساب 485
دفع أقساط التأمين على السيارات 1600
النقل 2800
تلفزيون كابل 680
تقدر قيمة المنزل 185،000
رحلة إلى أوروبا 5000
الترفيه و التسلية 4000
مدفوعات قروض السيارات 2150
توازن سوق المال في حساب 2500
شراء من الأسهم المشتركة 7500
بالإضافة إلى حساب سوق المال 500
الرهن العقاري على منزل 148000
أسئلة التفكير النقدي
1. استخدام هذه المعلومات وأوراق العمل 2.1 و 2.2، بناء على ورقة غردونس “التوازن وبيان الدخل والمصروفات للسنة المنتهية في 31 ديسمبر 2010.
2. التعليق على حالة غردونس المالية بشأن (أ) الملاءة، (ب) السيولة والمدخرات (ج)، (د) القدرة على سداد الديون على الفور. إذا كان غردونس مواصلة إدارة مواردهم المالية كما هو موضح، ماذا تتوقع العواقب على المدى الطويل أن تكون؟ مناقشة.
3. تقييم نقدي نهج غوردون إلى التخطيط المالي. نشير إلى أي مغالطات في الحجج بيرت، وتأكد أن أذكر (أ) الآثار المترتبة على المدى الطويل وكذلك (ب) الأثر المحتمل للتضخم في عام وتحديدا على صافي ثرواتهم. ما ينبغي أن الإجراءات التي تستخدمها للحصول على منزلهم المالية في النظام؟ تأكد من مناقشة الدور الذي طويلة وقصيرة الأجل خطط المالية والميزانيات يمكن أن تقوم به

· Bill’s Need to Know: Personal Finance or Tennis?

During the Christmas break of his final year at Ohio State, Bill Bledsoe plans to put together his résumé in order to seek full-time employment as a medical technician during the spring semester. To help Bill prepare for the job interview process, his older brother has arranged for him to meet with a friend, Cathy Smith, who has worked as a medical technician since her graduation from Ohio State 2 years earlier. Cathy gives him numerous pointers on résumé preparation, the interview process, and possible job opportunities.

After answering Bill’s many questions, Cathy asks Bill to update her on Ohio State. As they discuss courses, Cathy indicates that of all the electives she took, the personal financial planning course was most useful. Bill says that, although he had considered personal financial planning for his last elective, he’s currently leaning toward a beginning tennis course. He feels that the course will be fun because some of his friends are taking it. He points out that he doesn’t expect to get rich and already knows how to balance his checkbook. Cathy tells him that personal financial planning involves much more than balancing a checkbook and that the course is highly relevant regardless of income level. She strongly believes that the personal financial planning course will benefit Bill more than beginning tennis—a course that she also took while at Ohio State.

Critical Thinking Questions

1.         Describe to Bill the goals and rewards of the personal financial planning process.

2.         Explain to Bill what is meant by financial planning and why it is important regardless of income.

3.         Describe the financial planning environment to Bill. Explain the role of the consumer and the impact of economic conditions on financial planning.

4.         What arguments would you present to convince Bill that the personal financial planning course would benefit him more than beginning tennis?

 

Case Analysis 1

Finding:

            You’re final semester at Ohio State is coming up soon and you have electives or credits to be met.  There are plenty of different courses that can help you in the future, however, you’re considering a beginner’s tennis class.  As you start to develop a resume for a potential career opportunity, an elective that your friend, Cathy, brought to your attention can be of value to your future: Personal Finance class.  Sure, tennis will be fun, you get to play with your friends and it’s also a fairly easy credit, but learning how to plan finances is essential to one’s future and will pay off in the long run as opposed to learning a backhand drop shot.

Analysis:

If you take the beginner’s tennis class, you’re financial well-being may be at risk.

A financial planning class is much more than a class and it is a course that will not only help you, but the family that you might want to have someday in the future.  The course will give you knowledge about how to invest your money, when to start saving for retirement, which (believe it or not) will come fast, and how to improve your credit score.  All of these cannot be taught in a beginner’s tennis course and what is taught in the tennis course won’t have a lasting impact on your future.

Everyone has a financial plan.  Everyone wants to be successful and “rich.”  We all have goals we want to achieve in life.  This course will give you a different perspective on the importance of financial goals, which are essential to a financial plan.  Each financial goal you have in mind can certainly be met by learning about the financial planning process.  The first step of the process is to define your financial goal.  Goals can be long term (about 6 or more years) such as buying a house after you get married and starting your child’s or children’s college fund.  Other goals you have may be short term like buying scrubs for the career you might have, plan a vacation after you graduate or even buying a new phone. All of these goals can be met with the right financial plan which can be vital to the future as you begin your career in medical assisting.

Upon registering for courses at William Paterson University in my first year, I learned that the Financial Well Being class is required in the University Core Curriculum.  Ohio State University might not require undergraduates to take the course, but it will help you realize that this course will only help you. It may not be something you want to learn, but to learn how to manage your money and plan your finances should be taken advantage of, given the opportunity.  Maybe taking the course can actually be something you enjoy or take serious interest in because of the emphasis on your financial future.

I read that after thinking of taking the financial well-being course,  you said that you don’t plan on being rich and you’re already familiar with balancing a checkbook.  The point of this course, however, is to give you an overview of the financial planning process.  The course is not meant to help you get rich or teach how to be successful; it teaches you the value of a financial plan that will help you have a better standard of living.  The course also doesn’t teach you how to balance a checkbook; it teaches you how to plan your finances for when life throws you a curveball or (in tennis terms) puts you down a break in the fifth set.

Tennis can also be taught recreationally.  Investing in lessons privately would also be a better option. Rather than having a beginner’s tennis course, a financial well-being would be more worthwhile.  If you are paying tuition, which, I’m sure isn’t cheap, wouldn’t you want to earn the credits in a course that would challenge you and benefit your future more? 

Recommendation:

            As a financial planning class may be more of a challenge, it can only assist you in the future as you start your career, settle down and have a family.  My advice is to earn the credits on the financial planning course because they will be credits well deserved.  If you are interested in playing tennis or want to play for fun then I also recommend you ask your friends who have taken the beginner’s tennis course if they can teach you what they were taught.  You can even take private lessons if you want to be the next John McEnroe or if you just want to play for exercise.  I hope you take into consideration the value that the financial planning course can provide you