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Finance Lessons Learned In Finance Term Paper

The structuring of debt and its implications on cash flows, the structuring of payback periods, the use of fixed vs. adjustable-based loans, the use of accelerated loans, and conversely, the use of annuities, compound saving strategies, asset appreciation and portfolio planning all are based on finance. For the small business owner balancing these many strategies the need to trim down liabilities and aggressively manage debt while maintaining and growing annuity from customers is critical, in fact the lifeblood of their businesses. In many respects this same balance of managing liabilities and assets needs to pervade individual financing decisions. This goes beyond simply staying within budget; it requires the use of insightful tools and analytical techniques for managing to financial goals and objectives.

The pervasive...

potential returns for managing personal and professional investments is invaluable. Quantifying risk and its implications on investment decisions through beta scores, using financial analysis tools to plan retirement, knowing what a 401(k) is and how it works relative to the 529 Plan, versus a B. Keogh Plan and IRA are all must-know concepts for anyone working and saving for retirement today. Getting an education in financial tools, techniques and approaches to analysis is also critical in evaluating everything from job offers and potential relocation packages to whether it makes sense to start a new business, however small it is initially. The bottom line is that an education in finance is absolutely necessary for navigating both personal and professional financial decisions.

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