Week Date Class Number Subject Readings Assignment
Part 1: Introducing The Life-Cycle Model and Consumption Smoothing  
1 TUE 5/21 0 Course Overview and Administration PLE Introduction
TUE 5/21 1 Measuring Financial Health PLE mod 1 A01: Financial Health
THU 5/23 2 Human Capital PLE mod 2 A02: Human Capital
THU 5/23 3 The Life-Cycle Model PLE mod 3, pp. 41-55 A03: Life-cycle Model (part 1)
TUE 5/29 4 Borrowing and Borrowing Constraints PLE mod 3, pp. 56-61 A04: Life-cycle Model (part 2)
THU 5/30 QUIZ 1
Part 2: Understanding Interest and Inflation    
2 TUE 5/28 5 Present Value and Future Value PLE mod 4, pp. 65-75 A05: Future Value and Present Value
THU 5/30 6 Present Value of Annuities
Loans and Loan Payments
PLE mod 4, pp. 76-82
PLE mod 4, pp. 82-91
A06: Annuities and Loan Payments
FRI 5/31 7 Inflation and the Real Rate of Return PLE mod 4, pp.76-82 A07: Inflation and Real Rate of Return
FRI 5/31 8 The Life-Cycle Model in Present Value PLE mod 5 A08: Life-Cycle Model with Interest
MON 6/3 QUIZ 2
Part 3: Incorporating Taxes, Benefits, and Borrowing Constraints into the Life-Cycle Model    
3 MON 6/3 9 Dealing With Uncle Sam: Taxes PLE mod 6, pp. 105-113 A09: Personal Tax Calculations
TUE 6/4 10 Dealing With Uncle Sam: Benefits PLE mod 6, pp. 114-117 A10: Valuing Social Security
TUE 6/4 11 Smoothing Consumption in a World With Taxes PLE mod 6, pp. 118-127 A11: LC Model with Taxes and Interest
THU 6/6 12 Introduce Economic Security Planner PLE mod 7 A12: Using ESPlanner (part 1)
THU 6/6 13 Borrowing Constraints Revisited
Dynamic Programming
PLE mod 8 A13: Using ESPlanner (part 2)
MON 6/10 QUIZ 3
Week Date Class Number Subject Readings Assignment
Part 4: Using the Life-Cycle Model to Answer Life's Questions    
4 MON 6/10 14 Introducing Applied Life-cycle Economics
Investing in Human Capital
PLE mod 9, pp. 188-195 A14: Is College Worth It
TUE 6/11 15 Should You Stay In College?
How Should You Pay for College?
PLE mod 9, pp. 196-199 A15: Student Loan Repayment
TUE 6/11 16 Where Should You Live?
How to Buy Your House
PLE mod 9, pp. 199-203,
PLE mod 11, pp. 226-231
A16: Where to Live
THU 6/12 17 Why You Should Own Your House PLE mod 11, pp. 232-249 A17: Homeownership
THU 6/12 18 Saving for Retirement
Discuss Term Paper
PLE mod 12 A18: Selecting Retirement Accounts
Term paper, due MON 6/24
MON 6/17 QUIZ 4
Part 5: Wealth and Risk Management      
5 MON 6/17 19 Risk and Risk Management PLE mod 13, pp. 274-282 A19: Risk Assessment
TUE 6/18 20 Protecting Your Human Capital PLE mod 13, pp. 282-290 A20: Protecting Your HC
TUE 6/18 21 Introduction to Stock Market Investing PLE mod 14, pp. 292-300 A21: Quantifying Stock Performance
THU 6/19 22 Stocks for the Long Run PLE mod 14, pp. 300-308 A22: Portfolio Construction
THU 6/19 23 Stock Market Risk and the Long Run PLE mod 15, pp. TBD A23: Monte Carlo Simulation
MON 6/24 24 Asset Allocation and the Sequence of Returns PLE mod 15, pp. TBD A24: Asset Allocation
MON 6/24 25 Upside Investing PLE mod 15, pp. TBD Term Paper: due in class
TUE 6/25 QUIZ 5
Part 6: The Rest of Your Financial Life      
6 TUE 6/25 26 Where to Stash Your Cash
Who Should You Ask for Help
A25: Your Next Steps
THU 6/27 27 Discussion: Your Questions
Course Summary and Next Steps