Title : Financial Planning in a World of Credit and Debt (continued) + Contracts + Understanding Social Security, Medicare and You Reading: Chapters 4,5, and 6 Videos

Chapter 4: Credit Reports and Credit Scores #

1. What is the difference between a credit report and a credit score? Credit report is an individual financial report card that describes if the subject of the report has been making credit card and loan payments on time (includes a great deal of personal information), while a credit score is a culmination of the info on your credit report
2. Who are the 3 major credit reporting agencies? *1. Transunion (Empririca score) 2. Equifax (Beacon score) 3. Experian (Experian model)
3. To change your credit score, what do you need to do? Change the info on your credit report (i.e. be better (less of a credit risk))
4. What does “faith” create that enables growth? credit
5. What enables you to borrow more money than you earn? see above

Chapter 5: Contracts Can Be Dangerous to Your Health #

1. What is a contract? A binding agreement enterted volunatrily by 2+ competent parties
2. What is consideration? A mututal obligation to perform, and that something of value is to be exchanged → either a detriment incurred by by person making the promise or a benefit reciveed by the other party
3. How many contracts do you have now? Quite a few, employment, to real estatem debit cardsm insurance, cell phone, etc
4. What does the ‘contract checklist’ cover? Length of contract (how long you are required to be paid or pay and when), what cnstitutes the end of a contract (date/time, an event, is it renewable? can you terminate early, etc), Be knowledgable about how amendments can be made to the contract, as well as what occurs if either party fails to perfrom.
5. What is a Notary Public? Public officers, constituted by law, to witness the execution of certain classes of non-contentious documents (including moirtage docs, wills, deeds, etc)

Chapter 6: Social Security and Medicare #

1. To recieve social security benefits, what are the 4 basic requirements? 1. Age 2. The required number of quarters you have paid into the system 3. A minimal amount of incom earned over those quarters 4. You must be a citizen or lawful alien to recieve benefits
2. Can social security benefits be considered taxable income? 85% of SS benefits are currently taxable, however lower-income people are able to exclude more of their benefits from federal taxation
3. What is the combined percentage rate of income paid to FICA by the employee and employer? ?
4. Which Medicare parts are optional and means tested? Part B and D are optinal and means tested, which stipulates that … ?
5. Does Medicare cover 100% of a senior eligible’s medical expenses? ?