Topic Business & Economics Money Management Skills Course Guidebook Professor Michael Finke Texas Tech University Subtopic Economics PUBLISHED BY: THE GREAT COURSES Corporate Headquarters 4840 Westfields Boulevard, Suite 500 Chantilly, Virginia 20151-2299 Phone: 1-800-832-2412 Fax: 703-378-3819 www.thegreatcourses.com Copyright © The Teaching Company, 2015 Printed in the United States of America This book is in copyright All rights reserved Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior written permission of The Teaching Company Michael Finke, Ph.D Professor of Personal Financial Planning Director of the Retirement Planning and Living Consortium Texas Tech University P rofessor Michael Finke is a Professor of Personal Financial Planning and Director of the Retirement Planning and Living Consortium at Texas Tech University, where he leads the doctoral program—considered the premier academic program in ¿QDQFLDO SODQQLQJ +H FRPSOHWHG D GRFWRUDO GHJUHH LQ &RQVXPHU 6FLHQFH IURP7KH2KLR6WDWH8QLYHUVLW\LQDQGLQ)LQDQFHIURPWKH8QLYHUVLW\ RI 0LVVRXUL LQ  +H LV WKH IRUPHU HGLWRU RI WKH Journal of Personal Finance and is currently a contributing editor to Research PDJD]LQH $ ORQJWLPHDGYRFDWHIRUHWKLFDO¿QDQFLDODGYLFH3URIHVVRU)LQNHLVWKHIRUPHU SUHVLGHQWRIWKH$PHULFDQ&RXQFLORQ&RQVXPHU,QWHUHVWVDQGVHUYHVDVDQ H[SHUWRQUHJXODWRU\DQGOHJDOLVVXHVUHODWHGWR¿QDQFLDOSODQQLQJ Professor Finke has authored a number of award-winning research articles LQWKH¿HOGVRIUHWLUHPHQWLQFRPHLQYHVWPHQWDGYLFHDQGLQYHVWRUGHFLVLRQ PDNLQJ,QWRWDOKHKDVSXEOLVKHGPRUHWKDQSHHUUHYLHZHGDUWLFOHVDQG ERRNFKDSWHUVRQSHUVRQDO¿QDQFHWRSLFV Professor Finke also has received numerous awards as an instructor of a ZLGHUDQJHRI¿QDQFLDOSODQQLQJFRXUVHVIURPEDVLFXQGHUJUDGXDWHSHUVRQDO ¿QDQFHWRGRFWRUDOOHYHOUHVHDUFKPHWKRGV+HIUHTXHQWO\VSHDNVDWLQGXVWU\ DQG DFDGHPLF FRQIHUHQFHV RQ DGYDQFHG ¿QDQFLDO SODQQLQJ WRSLFV ,Q  he was named to the InvestmentNews Power 20 list for his research on the LPSDFW RI SURSRVHG ¿GXFLDU\ OHJLVODWLRQ RQ WKH EURNHUDJH LQGXVWU\ DQG LQ DQGKHZDVQDPHGWRWKHInvestment Advisor,$OLVWRIPRVW LQÀXHQWLDOSHRSOHLQWKHLQYHVWPHQWDGYLVLQJLQGXVWU\ $V DQ H[SHUW RQ SHUVRQDO ¿QDQFH LVVXHV 3URIHVVRU )LQNH KDV DSSHDUHG LQ the national press, including The Wall Street Journal, The New York Times, i USA TODAY, Kiplinger’s Personal Finance, and SmartMoney +H LV DOVR D IUHTXHQW JXHVW RQ QDWLRQDO UDGLR VKRZV VXFK DV 135¶V On Point with 7RP$VKEURRNŶ ii Disclaimer 7KH ¿QDQFLDO LQIRUPDWLRQ SURYLGHG LQ WKHVH OHFWXUHV LV IRU LQIRUPDWLRQDO SXUSRVHVRQO\DQGQRWIRUWKHSXUSRVHRISURYLGLQJVSHFL¿F¿QDQFLDODGYLFH Financial investing carries an inherent risk that you will lose part or all of \RXULQYHVWPHQW,QYHVWRUVPXVWLQGHSHQGHQWO\DQGWKRURXJKO\UHVHDUFKDQG DQDO\]H HDFK DQG HYHU\ LQYHVWPHQW SULRU WR LQYHVWLQJ 7KH FRQVHTXHQFHV of such risk may involve but are not limited to federal/state/municipal tax liabilities, loss of all or part of the investment capital, loss of interest, FRQWUDFWOLDELOLW\WRWKLUGSDUWLHVDQGRWKHUULVNVQRWVSHFL¿FDOO\OLVWHGKHUHLQ 8VHRIWKHVHOHFWXUHVGRHVQRWFUHDWHDQ\¿QDQFLDODGYLVRUUHODWLRQVKLSZLWK The Teaching Company or its lecturers, and neither The Teaching Company nor the lecturer is responsible for your use of this educational material or LWV FRQVHTXHQFHV