| Preface | p. xxi |
| Coordinated Financial Planning | p. 1 |
| Personal Financial Planning--The Process | p. 3 |
| What Is Personal Financial Planning? | p. 3 |
| Focus on Objectives | p. 4 |
| Need for Personal Financial Planning | p. 5 |
| Steps in the Planning Process | p. 6 |
| Use of Financial Planning Statements | p. 7 |
| Setting Financial Planning Objectives | p. 12 |
| Importance of Setting Objectives | p. 12 |
| Organizing Objectives | p. 12 |
| Adjusting Objectives for Inflation and Possible Deflation (Recession or Depression) | p. 23 |
| Adjusting Objectives to Changing Tax Laws | p. 24 |
| Using Insurance Effectively | p. 27 |
| Personal Insurance Principles and Selecting Insurers | p. 29 |
| Personal Risk Management | p. 29 |
| The Insurance Principle | p. 30 |
| Considerations in Choosing an Insurer | p. 30 |
| Considerations in Choosing an Agent or Broker | p. 34 |
| Life Insurance and Social Security | p. 36 |
| Sources of Life Insurance Protection | p. 36 |
| Social Security | p. 38 |
| Types of Individual Life Insurance Contracts | p. 42 |
| Definitions of Life Insurance for Income Tax Purposes | p. 55 |
| The Life Insurance Contract | p. 57 |
| Planning and Using Life Insurance | p. 62 |
| Substandard Risks | p. 64 |
| Nonmedical Life Insurance | p. 64 |
| What Actions Can an Uninsurable Person Take? | p. 65 |
| Group Life Insurance | p. 65 |
| How Much Life Insurance Is Needed? | p. 67 |
| Health Insurance | p. 70 |
| Sources of Health Insurance Protection | p. 70 |
| Disability Income (Loss-of-Time) Coverages | p. 71 |
| Medical Expense Coverages | p. 79 |
| Individual Health Insurance Policy Provisions | p. 90 |
| Medical Savings Accounts | p. 92 |
| Health Reimbursement Arrangements (HRAs) | p. 93 |
| Long-Term Care Insurance and Medicaid Planning | p. 94 |
| Nature of Exposure | p. 94 |
| Basic Planning Approaches | p. 95 |
| Long-Term Care Insurance and Other Arrangements | p. 95 |
| Medicaid Planning for Long-Term (Custodial) Care | p. 101 |
| Property and Liability Insurance | p. 109 |
| Property Insurance | p. 109 |
| Personal Liability | p. 110 |
| Homeowners Insurance | p. 112 |
| Automobile Insurance | p. 116 |
| Other Property and Liability Policies to Consider | p. 120 |
| Insurance Companies and Premiums | p. 122 |
| Investments and Investment Planning | p. 125 |
| Basic Investment Principles | p. 127 |
| The Basic Investment Objective | p. 127 |
| Investment Directly or Through Financial Intermediaries | p. 127 |
| Investment and Speculation | p. 129 |
| Factors in the Choice of Investments | p. 130 |
| Security of Principal and Income | p. 130 |
| Rates of Return | p. 137 |
| Marketability and Liquidity | p. 146 |
| Diversification | p. 146 |
| Tax Status | p. 148 |
| Size of Investment Units (or Denominations) | p. 148 |
| Use of Collateral for Loans | p. 148 |
| Callability | p. 148 |
| Freedom from Care | p. 149 |
| Common Stocks | p. 150 |
| Characteristics of Common Stocks | p. 150 |
| Some Measures of Value for Common Stocks | p. 150 |
| Information About Common Stocks | p. 154 |
| The Investment Process | p. 155 |
| Diversifying a Common Stock Portfolio | p. 157 |
| Periodic Review | p. 157 |
| Decisions Concerning Selling Common Stocks | p. 157 |
| Dollar-Cost Averaging | p. 158 |
| The Mechanics of Buying and Selling Common Stocks | p. 158 |
| Margin Accounts | p. 160 |
| Selling Short | p. 160 |
| Securities Investor Protection Corporation | p. 161 |
| Investment Categories of Common Stocks | p. 161 |
| Some Theories of Common Stock Investment | p. 164 |
| Common Stocks and Market Cycles | p. 166 |
| The Case for Long-Term Investments in Common Stocks | p. 166 |
| Some Caveats | p. 170 |
| Other Equity Investments | p. 174 |
| Real Estate | p. 174 |
| Oil and Gas (Natural Resource) Ventures | p. 182 |
| Other Tax Shelters | p. 182 |
| Impact of Passive Activity Loss Rules | p. 183 |
| Put and Call Options | p. 184 |
| New Issues or Initial Public Offerings (IPOs) | p. 186 |
| Commodity Futures Trading | p. 186 |
| Art, Antiques, Coins, Stamps, Gold, and Other Precious Metals | p. 188 |
| Fixed-Income Investments | p. 189 |
| Types of Fixed-Income Investments | p. 189 |
| Ways of Taking Returns from Bonds | p. 189 |
| Corporate Bonds | p. 191 |
| Municipal Bonds (Munis) | p. 192 |
| U.S. Government Obligations | p. 196 |
| Market Discount Bonds | p. 199 |
| Zero-Coupon Bonds (Zeros) | p. 200 |
| Preferred Stocks | p. 201 |
| Guaranteed Principal Fixed-Income Investments | p. 202 |
| Liquid Assets | p. 204 |
| Conversion Privileges in Fixed-Income Securities | p. 204 |
| Bond Ratings and Investment Quality | p. 204 |
| Strategies for Investing in Fixed-Income Securities | p. 207 |
| Mutual Funds and Other Investment Companies | p. 209 |
| Kinds of Investment Companies | p. 209 |
| Why Invest in Mutual Funds? | p. 209 |
| Disadvantages of Mutual Funds | p. 210 |
| Types of Funds--Some Planning Considerations | p. 210 |
| Regulation of Investment Companies | p. 213 |
| How to Invest in Mutual Funds | p. 213 |
| Distributions from and Exchanges of Mutual Funds | p. 214 |
| Mutual Funds and Their Investment Objectives | p. 215 |
| Getting Information About Mutual Funds | p. 222 |
| Mutual Fund Performance | p. 222 |
| Mutual Fund Expenses | p. 225 |
| Factors Involved in Selecting Mutual Funds | p. 226 |
| Planning Considerations for Mutual Funds | p. 227 |
| Tax Aspects of Mutual Funds | p. 227 |
| Exchange-Traded Funds | p. 230 |
| Hedge Funds | p. 230 |
| Asset Allocation Strategies and Models | p. 232 |
| Fundamentals of Asset Allocation | p. 232 |
| Steps in the Asset Allocation Process | p. 233 |
| Personal Factors and Asset Allocation | p. 233 |
| Investment Objectives | p. 235 |
| Investment Policies | p. 236 |
| Possible Asset Classes to Be Considered | p. 237 |
| Investment Vehicles to Be Considered | p. 237 |
| Return-Risk Considerations | p. 239 |
| Allocations Within Asset Classes | p. 243 |
| How Investments (Asset Classes) Should Be Held | p. 243 |
| Illustrations of Asset Allocation Strategies | p. 245 |
| Income Tax Planning | p. 255 |
| Income Tax Fundamentals | p. 257 |
| The Federal Income Tax on Individuals | p. 257 |
| The Federal Income Tax on Corporations | p. 273 |
| Pass-Through Business Entities | p. 277 |
| Federal Income Taxation of Trusts and Estates | p. 278 |
| State and Local Income Taxes | p. 280 |
| Basic Income Tax Saving Techniques for Individuals | p. 281 |
| Eliminating or Reducing Taxes | p. 281 |
| Shifting the Tax Burden to Others | p. 287 |
| Allowing Wealth to Accumulate Without Current Taxation and Postponing Taxation | p. 288 |
| Taking Returns as Capital Gains | p. 290 |
| Taxation and the Capital Gains Lock-in Problem | p. 290 |
| Tax-Planning Caveats | p. 298 |
| Charitable Giving | p. 300 |
| Basic Tax Principles | p. 300 |
| Planning Techniques | p. 302 |
| Planning for Retirement and Capital Accumulation Plans | p. 317 |
| Employer-Provided Qualified Retirement Plans and Social Security Benefits | p. 319 |
| Economic Problems of Retirement Years | p. 319 |
| Steps in Planning for Retirement Income | p. 319 |
| Sources of Retirement Income | p. 320 |
| Characteristics of Employer-Provided Retirement Plans | p. 322 |
| Pension Plans | p. 333 |
| Profit-Sharing Plans | p. 336 |
| Savings (Thrift) Plans | p. 338 |
| Stock Bonus Plans and Employee Stock Ownership Plans (ESOPs) | p. 344 |
| Hybrid Qualified Retirement Plans | p. 345 |
| Retirement Plans for the Self-Employed (HR-10 or Keogh Plans) | p. 346 |
| Other Employer-Provided Retirement Plans and Other Employee Benefits | p. 351 |
| Other Employer-Provided Retirement Plans | p. 351 |
| Other Employee Benefits | p. 358 |
| Individual Retirement Accounts and Annuities (IRAs) | p. 361 |
| Basic Concepts | p. 361 |
| Types of IRAs | p. 362 |
| Other Aspects of IRAs | p. 371 |
| Planning Issues for IRAs | p. 372 |
| Planning for Taking Distributions from Qualified Retirement Plans and IRAs | p. 377 |
| General Considerations | p. 377 |
| Taxation of Benefits from Qualified Plans and IRAs | p. 379 |
| Planning for Distributions from Qualified Retirement Plans and IRAs | p. 397 |
| Individual Investment Annuity Contracts | p. 406 |
| Fundamental Purposes of Annuities | p. 406 |
| Types of Individual Annuities | p. 406 |
| Parties to the Annuity Contract | p. 409 |
| Phases of Annuities | p. 409 |
| Investment Returns on Annuities | p. 410 |
| Expense Charges on Annuities | p. 412 |
| Withdrawals and Loans | p. 413 |
| Exchanges of Annuities | p. 414 |
| Annuity Distribution (Payout) Options | p. 414 |
| Annuity Death Benefits | p. 414 |
| Split-Funded Annuities | p. 415 |
| Taxation of Nonqualified Annuities | p. 416 |
| Other Individual Annuity Arrangements | p. 418 |
| Using Life Insurance Values to Provide Retirement Income | p. 418 |
| Employee Stock Compensation Plans | p. 420 |
| General Considerations | p. 420 |
| Types of Plans | p. 420 |
| Statutory Plans | p. 421 |
| Nonstatutory Plans | p. 424 |
| Provisions of Stock Option Plans | p. 428 |
| Valuation of Stock Options | p. 431 |
| Some Caveats Concerning Stock Options and Other Plans | p. 434 |
| Planning Issues Regarding Stock Options and Other Stock Plans | p. 434 |
| Estate Planning | p. 437 |
| Estate Planning Principles | p. 439 |
| Objectives of Estate Planning | p. 439 |
| Methods of Property Disposition | p. 440 |
| Property and Property Interests | p. 441 |
| What Is Meant by the "Estate"? | p. 448 |
| Settling the Estate | p. 452 |
| Trusts in Estate Planning | p. 454 |
| The Transfer Tax System | p. 462 |
| Impact of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) | p. 462 |
| Applicable Credit Amount (Unified Credit) and Applicable Exclusion Amount | p. 463 |
| Federal Gift Tax | p. 464 |
| Federal Estate Tax | p. 472 |
| Federal Generation-Skipping Transfer (GST) Tax | p. 480 |
| Lifetime Giving and Sales Within the Family | p. 486 |
| Making Lifetime (Inter Vivos) Gifts to Noncharitable Donees | p. 486 |
| Sales Within the Family | p. 503 |
| Loans to Family Members | p. 506 |
| Marital Deduction Planning, Postmortem Planning, and Estate Liquidity | p. 507 |
| Marital Deduction Planning | p. 507 |
| Postmortem Estate Planning | p. 522 |
| Estate Liquidity | p. 524 |
| Life Insurance in Estate Planning | p. 526 |
| Taxation of Life Insurance | p. 526 |
| How to Arrange Life Insurance | p. 533 |
| Gifts of Life Insurance | p. 540 |
| Revocable Living Trusts, Other Will Substitutes, and Property Management Arrangements | p. 544 |
| Revocable Living Trusts as a Will Substitute | p. 544 |
| Joint Property with Right of Survivorship | p. 548 |
| Property Management Arrangements to Deal with Physical or Mental Incapacity | p. 549 |
| Financing Education Expenses | p. 552 |
| Importance as a Financial Objective | p. 552 |
| Nature and Growth of Education Costs | p. 552 |
| Estimating Education Costs | p. 553 |
| Financial Aid Considerations | p. 554 |
| Tax "Breaks" for Education Costs | p. 555 |
| Strategies in Planning for Education Costs | p. 557 |
| Planning for Business Interests | p. 572 |
| Potential Issues | p. 572 |
| Characteristics of Closely Held Businesses | p. 573 |
| Types of Business Entities | p. 573 |
| Check-the-Box Regulations | p. 581 |
| Income Tax Basis in Business Interests | p. 582 |
| Factors in Choice of Entity | p. 583 |
| Disposition of Business Interests | p. 588 |
| Retention of Business Interests | p. 598 |
| Index | p. 601 |
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