The course will address questions such as:
- Should you invest in bonds, shares, real estate, private equity or a mix thereof?
- Should you invest part of your wealth abroad?
- When and how much should you borrow?
- How much should you save for pension, and your children's education?
We will develop a formal framework for making optimal private financial decisions. The framework will highlight the importance of personal circumstances and preferences as well as external institutional conditions. The course will have a particular focus on the effect of taxes. We will consider how individuals can use changes in the tax system to their advantage, and what mistakes people tend to make in the real world. This course is specifically targeted at students who want to work in family firms and students who seek to work in sectors that advice individuals and small business owners on their financial decisions. This includes jobs in the banking, insurance, wealth management, accounting and pension sector. More broadly, the personal finance sector touches most other sectors of the economy, directly or indirectly, and involves each of us in our daily lives.