| Week | Date | Class # | Subject | Readings | Assignment | |||||
| Part 1: When will I be wealthy? How should I spend my wealth over my lifetime? | ||||||||||
| 1 | TUE 1/17 | 1 | Course Overview and
Administration Measuring Financial Health |
GAFL: ch 1, 2 SOPF: Intro, mod 1 |
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| THU 1/19 | 2 | Introducing the Life-cycle Model |
SOPF: mod 2, pp1-4 GAFL: ch 3, 4 |
HW1: Estimate Your Human Capital, due 1/24 | ||||||
| 2 | TUE 1/24 | 3 | Consumption Smoothing Example: consumption-smoothing-80-periods.xls |
SOPF: mod 2, pp4-9, append STTE: ch 1, 2 Excel Tutorial Videos: Spreadsheet Basics Editing Data, Formatting Arithmetic |
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| THU 1/26 | 4 |
Maximizing Economic Happiness Borrowing and Borrowing Constraints Example: consumption-smoothing-80-periods-w-borrowing.xls |
SOPF:
mod 2, pp10-16 |
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| TUE 1/31 | QUIZ 1 | |||||||||
| Part 2: Number Crunching: How Much and When? | ||||||||||
| 2 | TUE 1/31 | 5 |
Thinking in Present Value Example: pv-fv-examples.xls Example: additive-pvs.xls |
FE, ch 4 Excel Tutorial Videos: Spreadsheet Basics Editing Data, Formatting Arithmetic |
HW2: Present and Future Values, due TUE 2/7 | |||||
| THU 2/2 | 6 | Inflation and Inflation Protection |
FE, ch 4 SOPF: mod 3 |
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| 3 | TUE 2/7 | 7 |
The Life-cycle Model in Present Value Example: consumption-smoothing-with-r.xls |
SOPF: mod 2, pp17-23 | ||||||
| THU 2/9 | 8 |
Valuing Strings of Payments Calculating Payments Example: pv-annuity.xls Example: pmt-example.xls Example: revolving-loan.xls |
FE, ch 4 |
HW3: Calculating Payments, due THU 2/16 | ||||||
| TUE 2/14 | 9 | Dealing With Uncle Sam |
GAFL: ch 9 SOPF: mod 4, pp. 1-9 | |||||||
| THU 2/16 | QUIZ 2 | |||||||||
| Part 3: Economics is Here to Help You! (some heavy lifting tools) | ||||||||||
| 6 | THU 2/16 | 10 |
Smoothing Consumption in a World With Taxes Example: cons-smooth-with-taxes.xls (template) Example: cons-smooth-with-taxes-complete.xls |
SOPF: mod 4, pp. 10-19 | ||||||
| TUE 2/21 | MONDAY SCHEDULE, NO CLASS ON TUE 2/21 | Watch this video: Introducing ESPlanner | ||||||||
| THU 2/23 | 11 |
Review: Smoothing Consumption with Taxes Discuss Borrowing Constraints and Smoothing Consumption Example: cons-smooth-with-taxes-complete2.xls Introduce Economic Security Planner |
SOPF: mod 5 STTE: ch 3, 5, 6, 8 |
HW4: Using ESPlanner (part 1), due TUE 2/28 | ||||||
| 7 | TUE 2/28 | 12 |
Discuss ESPlanner Outputs, Examples Borrowing Constraints Revisited |
SOPF: mod 5 |
HW5: Using ESPlanner (part 2), due TUE 3/6 | |||||
| THU 3/1 | 13 |
Smoothing Consumption under Borrowing Constraints Dynamic Programming |
SOPF: mod 6 | |||||||
| 8 | TUE 3/6 | 14 | Borrowing Constraints (continued) Quiz 3 review, Q&A |
SOPF: mod 6 | ||||||
| THU 3/8 | QUIZ 3 | |||||||||
| Week | Date | Class # | Subject | Readings | Assignment | |||||
| Part 4: Applied Lifecycle Economics | ||||||||||
| THU 3/8 | 15 | Introducing Applied Life-cycle Economics | SOPF: mod 7, pp 1-8 | HW6: Is College Worth It, due 3/20 | ||||||
| TUE 3/13 | SPRING BREAK - NO CLASS | |||||||||
| THU 3/15 | SPRING BREAK - NO CLASS | |||||||||
| 9 | TUE 3/20 | 16 | Investing in Human Capital Should You Stay In College? |
Debt-Free U: Ch 1-4 SOPF: mod 8 |
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| THU 3/22 | 17 |
How should you pay for college? Student loans |
Term Paper Assigned, due 4/19 | |||||||
| 10 | TUE 3/27 | 18 |
Where Should You Live? How To Buy Your House mortgage-PITI-calculator.xls |
GAFL: ch 7 SOPF: mod 7, pp 9-13 SOPF: mod 10, pp 1-6 STTE: 11, 12, 13 |
HW7: Where to Live, due 3/29 | |||||
| THU 3/29 | 19 | Why You Should Own Your House | GAFL: ch 7 SOPF: mod 10, pp 7-22 STTE 14 |
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| 11 | TUE 4/3 | 20 |
Should You Get Married? Should You Get Divorced? |
Lecture Slides STTE: ch. 24, 25, 26 |
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| THU 4/5 | QUIZ 4 | |||||||||
| Part 5: Wealth and Risk Management | ||||||||||
| THU 4/5 | 21 | Selecting Retirement Acounts | GAFL: ch 6 SOPF: mod 11 STTE: ch 17, 18, 19 |
HW8: Valuing Social Security, due 4/10 | ||||||
| 12 | TUE 4/10 | 22 |
Risk and Risk Management Protecting Your Human Capital |
Lecture Slides STTE: ch 32 FE: ch 10 GAFL: ch 8 |
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| THU 4/12 | 23 |
Investing in Stocks How Not To Invest In Stocks |
Lecture Slides GAFL: ch 5 | |||||||
| 13 | TUE 4/17 | 24 | Stocks for the Long Run |
Lecture Slides STTE: ch 21, 22 Article: Stocks for the Long Run | ||||||
| THU 4/19 | 25 | The Truth About Stocks |
Lecture Notes STTE, ch 21, 22 WFI, ch 7, 8 Myth of Time Diversification Watch Zvi Bodie's videos. |
Term Paper Due | ||||||
| 14 | TUE 4/24 | 26 |
Upside Investing |
Lecture Notes
A Retirement Program for the Risk-Averse
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| THU 4/26 | QUIZ 5 | |||||||||
| Part 6: Getting Started on Your Financial Life | ||||||||||
| THU 4/26 | 27 |
Where to Stash Your Cash Who Should You Ask for Help |
GAFL: ch 4 | |||||||
| 15 | TUE 5/1 | 28 |
Your Questions/Discussion The Rest Of Your Financial Life Exam Review |
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| 16 | WED 5/9 | FINAL EXAM 3-5pm @ SCI 113 | ||||||||