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18 - General Principles of Financial Planning (f) For business use, taxpayers who trade in autos every three years or less usually end up with a realized loss that cannot be deducted The taxpayer s basis (after limited depreciation deductions) exceeds the trade-in value, but the loss is not recognized, because of Section 1031 like-kind exchange rules (g) For business use, the cost of interest is included in the lease payments (the entire payment is 100 percent deductible) Interest is not deductible for employees who purchase their vehicles B Buying a house or leasing (renting) (1) The most common reason for renting instead of buying is the lack of funds for a down payment (2) Buying a home offers many advantages: (a) There are tax advantages with home ownership (b) Creditors look more favorably on homeowners (c) A residence may be an appreciating asset (d) Monthly housing costs tend to be more stable than the cost of renting (3) Renting may make sense if the stay is short term 2 Adjustable and xed rate loans A Fixed rate loans have a stated interest rate that lasts for the term of the loan and are more appropriate for clients with a low tolerance for risk B Adjustable rate loans have provisions that permit the lender to change the interest rate periodically C If the time expected to be in a house is short term, an adjustable rate mortgage (ARM) may be preferred to a xed rate mortgage because of lower initial interest rates resulting in the lowest current payment This assumes the client has a higher risk tolerance for a variable rate D An ARM with a 2/6 cap indicates a 2 percent maximum interest rate increase per year, 6 percent life of loan E In a low or increasing interest rate environment, a client is best served using a xed rate loan In contrast, in a high or decreasing interest rate environment, the client may be best served with a variable rate loan 3 Effect on nancial statements A Balance sheet effect: (1) Leased or rented assets have no entry except to the extent that a lump sum may have been taken from one of the listed assets as an initial payment to secure the leased asset An initial payment results in a cash decrease and a decrease in net worth There is no debt, so there is no asset (2) Purchased assets with 100 percent cash reduce cash but add in the asset y the same amount result in no change to net worth (3) Purchased assets with loan result in a reduction of cash or other liquid asset that was used for the purchase or down payment If there is a loan that was secured in order to purchase the asset, it will show up as a liability This results in no change to net worth For example, assume $5,000 cash is used as a down payment to purchase a car valued at $10,000, and the remaining $5,000 is nanced through an auto loan The effect is a $5,000 increase in assets ($10,000 market value of car minus $5,000 decrease in cash) and a $5,000 increase in liabilities (loan amount).

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Using Barcode Control SDK for NET framework Control to generate, create, read, scan barcode image in S NET applications When he changed his rules, the problem was magically fixed e expressed his new rules for feeling healthy and vital in the form of affirmations, which he can repeat as often as he needs to keep them firmly in his mind: I am aware of how healthy and vital I feel whenever I exercise to a warm glow I am aware of how healthy and vital I feel whenever I go to bed without feeling exhausted I am aware of how healthy and vital I feel whenever I avoid poor food or drink choices I am aware of how healthy and vital I feel whenever I walk rather than ride I am aware of how healthy and vital I feel whenever I meditate.

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Ask yourself what has to happen in order for you to feel that sense of connection you want so badly How about simply stopping for a moment in your busy day and picturing your partner, or children, or parents, whatever it is for you That can be enough to flood you with feelings of connectedness Don t limit yourself to one thing, though; add in some more Create half a dozen new rules that allow you to experience each of the values in your hierarchy Make your own list of affirmations for each end s value Using your affirmations can ensure that you feel the way you want to feel most of the time, and it eliminates the values conflicts that come from the limitation of having just a few, hard-to-satisfy rules about fulfilling your values.

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Our recursive evaluation routine does have a few problems One is the call s ( 0) , for which the function behaves poorly' This behavior is natural because the recursive definition of S(N) does not allow for N < 1 We can fix this problem by extending the definition of S(N) to include N = 0 Because there are no numbers to add in this case, a natural value for S(0) would be 0 This value makes sense because the recursive definition can apply for S(I ), as S(0) + 1 is I To implement this change, we just replace 1 with 0 on lines 4 and 5 Negative N also causes errors, but this problem can be fixed in a imilar manner (and is left for you to do as Exercise 82) A second problem is that the return value may be too large to fit in an int,but that is not an important issue here A third problem, however, is that if the parameter n is large, but not so large that the answer does not fit in an int,the program can crash or hang Our system, for instance, cannot handle N 2 74,754 The reason is that, as we have shown, the implementation of recursion requires some bookkeeping to keep track of the pending recursive calls, and for sufficiently long chains of recursion, the computer simply runs out of memory We explain this condition in more detail later in the chapter This routine also is somewhat more time consuming than an equivalent loop because the bookkeeping also uses some time Needless to say, this particular example does not demonstrate the best use of recursion because the problem is so easy to solve without recursion Most of the good uses of recursion do not exhaust the computer's memory and are only slightly more time consuming than nonrecursive implementations However, recursion almost always leads to more compact code.

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