Quick Lesson in Finance and College Stuff

Okay so Elaine's mom [My mom's friend] invited this random businessman to my house to talk to my mom into doing business and stuff so then if she does business and is successful, he'll get commission and be successful [yes I had to ask him his benefits... and at first he's like "I don't benefit" but then I'm like "humans are selfish people, you must benefit from this", and that's when I got him to tell me-- heh;; I feel like a mean person but w/e]. This is an important life lesson on finance and money and how to get rich and stuff... [yeah... -cough-] but I just thought it might be of use to people/kids around our age for now...



HOW COLLEGES CALCULATE NEED-BASED FINANCIAL AID

The cost of the college - the GFC
the GFC includes:
1. parent's income -- 20%
2. parent's asset -- 5-6%
3. child's income -- 35%
4. chlid's asset

Interesting thing learned: the 72 Rule
72/(interest rate) = estimate number of years it takes for your money to double

To increase cash flow:

1. Dollar Cost Averaging - a technique to reduce risk with a large purchsase
2. Diversify where you put your money

-- Get a Tax-free account thing

Also, in the future, one would need to buy protection, like health insurance, disability insurance, public limited company (a type of limited company whose shares may be offered for sale to the public), and obviously life insurance...

How to calculate the "value of a person" [lol]
1. Debt
2. Income [let's say, 90k] x7
3. Mortgage [let's say 340k]
4. Education [Let's say 250k/child and you have 2 chidren]

total would be around 1.5mil = cost of a person. now just change the numbers around a bit and u can find the cost of yourself! :D;;;

Retirements: there's the 401k, 403b, and IRA plans like ROTH [Individual Retirement Account that provides tax-free growth] and VUL [Variable Universal Life insurance]

3.5 important aspects of success:

1. IQ [intelligence... hopefully u have some of that]
2. EQ [emotional intelligence]
3. AQ [adversity quotient]
3.5. SQ [ spiritual quotient -- this mostly depends on the person]

Yay... okay this is about how much I understood the random businessman >.<;; [Oh btw... I'm technically not supposed to distribute this so.. umm... yeah...]