Financial Calculators For Lawyers

advertisement
FINANCIAL CALCULATIONS FOR
LAWYERS
Lesson One
Introduction
“Why Lawyers Need to Understand
Finance”
© Steven J. Willis 2006
1
Why Lawyers Need to Understand Finance
Finance is not just for accountants and tax
lawyers.
© Steven J. Willis 2006
2
Why Lawyers Need to Understand Finance
Finance is not just for accountants and tax
lawyers.
Learning finance is
important for every lawyer.
© Steven J. Willis 2006
3
Why Lawyers Need to Understand Finance
Finance is not just for accountants and tax
lawyers.
Learning finance is
important for every lawyer.
Finance involves many aspects of the
law . . . from torts and family law, to
trial practice, and personal
purchases.
© Steven J. Willis 2006
4
Why Lawyers Need to Understand Finance
But, the question of the moment is:
© Steven J. Willis 2006
5
Why Lawyers Need to Understand Finance
But, the question of the moment is:
Why must you learn it?
© Steven J. Willis 2006
6
Why Lawyers Need to Understand Finance
• Consider some examples.
© Steven J. Willis 2006
7
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
© Steven J. Willis 2006
8
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages involve a
stream of income.
© Steven J. Willis 2006
9
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
© Steven J. Willis 2006
10
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
© Steven J. Willis 2006
11
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
12
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Who might be a
forensic accountant
or a forensic
economist.
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
13
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
14
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In a typical jurisdiction,
the Court or Jury will
award a lump sum today
equal to the future loss.
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
15
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In a typical jurisdiction,
the Court or Jury will
award a lump sum today
equal to the future loss.
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
16
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In a typical jurisdiction,
the Court or Jury will
award a lump sum today
equal to the future loss.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
17
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
The typical Court or Jury will not
award a series of payments to
replace the lost stream of
income.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
18
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
The typical Court or Jury will not
award a series of payments to
replace the lost stream of
income.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
19
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
The typical Court or Jury will not
award a series of payments to
replace the lost stream of
income.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
20
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
The typical Court or Jury will not
award a series of payments to
replace the lost stream of
income.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
A structured settlement between the parties may
contractually agree upon such a stream; however, that is a
matter of settlement . . . not a court award.
© Steven J. Willis 2006
21
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
The typical Court or Jury will not
award a series of payments to
replace the lost stream of
income.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
A structured settlement between the parties may
contractually agree upon such a stream; however, that is a
matter of settlement . . . not a court award.
© Steven J. Willis 2006
22
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In either case, you
must be able to
compute the value
today of the lost
stream of income:
1. to settle, or
2. to argue to a jury.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
23
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In either case, you
must be able to
compute the value
today of the lost
stream of income:
1. to settle, or
2. to argue to a jury.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
24
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In either case, you
must be able to
compute the value
today of the lost
stream of income:
1. to settle, or
2. to argue to a jury.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
25
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
In either case, you
must be able to
compute the value
today of the lost
stream of income:
1. to settle, or
2. to argue to a jury.
CAUTION
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
26
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lesson 11
will teach you to
compute the present
value of an annuity.
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
27
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lesson 11
will teach you to
compute the present
value of an annuity.
Lost wages involve a
stream of income.
This is called an annuity:
any series of payments.
To value the loss, an expert (or the lawyer)
must compute the present value today of
the future loss.
© Steven J. Willis 2006
28
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
© Steven J. Willis 2006
29
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
© Steven J. Willis 2006
30
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
© Steven J. Willis 2006
31
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
Which is either proved or stipulated.
© Steven J. Willis 2006
32
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and he
expected to continue until age 65.
© Steven J. Willis 2006
33
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and he
expected to continue until age 65.
Age at injury.
© Steven J. Willis 2006
34
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and he
expected to continue until age 65.
Projected age at retirement.
© Steven J. Willis 2006
35
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and he
expected to continue until age 65.
Thirty-five years would thus be his work-life expectancy.
© Steven J. Willis 2006
36
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
He thus lost
$50,000 per year
for 35 years.
© Steven J. Willis 2006
37
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Hypothetically:
A 30-year old man was permanently disabled.
He’d been earning $50,000 annually and
expected to continue until age 65.
We must compute the
present value of an
annuity of $50,000 for
35 years.
© Steven J. Willis 2006
He thus lost
$50,000 per year
for 35 years.
38
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lesson 11
will teach you to
compute the present
value of an annuity.
We must compute the
present value of an
annuity of $50,000 for
35 years.
© Steven J. Willis 2006
39
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
$50,000 times 35 years = $1,750,000
We could do it this way.
© Steven J. Willis 2006
40
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Lost wages
$50,000 times 35 years = $1,750,000
We could do it this way.
© Steven J. Willis 2006
41
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Work life expectancy
$50,000 times 35 years = $1,750,000
We could do it this way.
© Steven J. Willis 2006
42
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Simple answer.
$50,000 times 35 years = $1,750,000
We could do it this way.
© Steven J. Willis 2006
43
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
$50,000 times 35 years = $1,750,000
We could do it this way.
© Steven J. Willis 2006
But, that
would be the
wrong
answer!
44
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Instead . . .
© Steven J. Willis 2006
45
Why Lawyers Need to Understand Finance
• Tort Law
– Personal Injury Case
Instead . . .
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
46
Why Lawyers Need to Understand Finance
© Steven J. Willis 2006
47
Why Lawyers Need to Understand Finance
Notice
© Steven J. Willis 2006
48
Why Lawyers Need to Understand Finance
Notice
50,000 in
lost wages
© Steven J. Willis 2006
49
Why Lawyers Need to Understand Finance
Notice
35 years in
work life
expectancy
© Steven J. Willis 2006
50
Why Lawyers Need to Understand Finance
Notice
A 3%
discount rate
of interest.
© Steven J. Willis 2006
51
Why Lawyers Need to Understand Finance
Notice
The use of end
mode.
© Steven J. Willis 2006
52
Why Lawyers Need to Understand Finance
Notice
The answer of
1,074,362.00
© Steven J. Willis 2006
53
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
54
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
You are likely thinking:
what on earth does all
that mean?
© Steven J. Willis 2006
55
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
56
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
57
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
58
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
59
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
60
Why Lawyers Need to Know Finance
• Tort Law
– Personal Injury Case
This Calculator used a 3%
effective discount interest
rate, end mode, and no
adjustment for taxes or
inflation or productivity
increases.
The Present Value of an Annuity Calculator
will value this at $1,074,361.00.
© Steven J. Willis 2006
61
Why Lawyers Need to Understand Finance
To summarize
You will learn in this course:
1.
2.
3.
4.
5.
© Steven J. Willis 2006
What calculator to use and why.
Why that interest rate
Why that mode
They impact of inflation
The impact of productivity changes
62
Why Lawyers Need to Understand Finance
To summarize
You will learn in this course:
1.
2.
3.
4.
5.
© Steven J. Willis 2006
What calculator to use and why.
What interest rate to use and why.
Why that mode
They impact of inflation
The impact of productivity changes
63
Why Lawyers Need to Understand Finance
To summarize
You will learn in this course:
1.
2.
3.
4.
5.
© Steven J. Willis 2006
What calculator to use and why.
What interest rate to use and why.
What mode and why.
They impact of inflation
The impact of productivity changes
64
Why Lawyers Need to Understand Finance
To summarize
You will learn in this course:
1.
2.
3.
4.
5.
© Steven J. Willis 2006
What calculator to use and why.
What interest rate to use and why.
What mode and why.
The impact of inflation
The impact of productivity changes
65
Why Lawyers Need to Understand Finance
To summarize
You will learn in this course:
1.
2.
3.
4.
5.
© Steven J. Willis 2006
What calculator to use and why.
What interest rate to use and why.
What mode and why.
The impact of inflation
The impact of productivity changes
66
Why Lawyers Need to Understand Finance
• Other examples will involve Family Law
© Steven J. Willis 2006
67
Why Lawyers Need to Understand Finance
• Family Law
– You may compute the present value of
future alimony: to settle it in a lump
sum.
– To value a business that must be
divided or awarded to one spouse,
with a comparable amount to another.
– To value a retirement account that
must be split in a dissolution.
© Steven J. Willis 2006
68
Why Lawyers Need to Understand Finance
• Family Law
– You may compute the present value of
future alimony: to settle it in a lump
sum.
– To value a business that must be
divided or awarded to one spouse,
with a comparable amount to another.
– To value a retirement account that
must be split in a dissolution.
© Steven J. Willis 2006
69
Why Lawyers Need to Understand Finance
• Family Law
– You may compute the present value of
future alimony: to settle it in a lump
sum.
– You may value a business that must be
divided or awarded to one spouse, with
a comparable amount to another..
– To value a retirement account that
must be split in a dissolution.
© Steven J. Willis 2006
70
Why Lawyers Need to Understand Finance
• Family Law
– You may compute the present value of
future alimony: to settle it in a lump
sum.
– You may value a business that must be
divided or awarded to one spouse, with
a comparable amount to another.
– You may value a retirement account that
must be split in a dissolution.
© Steven J. Willis 2006
71
Why Lawyers Need to Understand Finance
• Still other examples involve Property Law
– To value future rents on property being
sold.
– To amortize a home loan.
• Contract Law
– To set an interest rate or payment
schedule.
© Steven J. Willis 2006
72
Why Lawyers Need to Understand Finance
• Property Law
– You may value future rents on property
being sold.
– To amortize a home loan.
• Contract Law
– To set an interest rate or payment
schedule.
© Steven J. Willis 2006
73
Why Lawyers Need to Understand Finance
• Property Law
– You may value future rents on property
being sold.
– You may amortize a home loan.
• Contract Law
– To set an interest rate or payment
schedule.
© Steven J. Willis 2006
74
Why Lawyers Need to Understand Finance
• And other examples involve Contract Law
– To set an interest rate or payment
schedule.
© Steven J. Willis 2006
75
Why Lawyers Need to Understand Finance
• Contract Law
– You may need to set an interest rate or
payment schedule.
© Steven J. Willis 2006
76
Why Lawyers Need to Understand Finance
• Contract Law
– You may need to set an interest rate or
payment schedule.
– You may need to compute the value of a
profits share.
© Steven J. Willis 2006
77
Why Lawyers Need to Understand Finance
• And, in your Personal Life
– To buy a car or house
– To save for a child’s education
– To plan for retirement
– In case you win the lottery, to value
your winnings.
© Steven J. Willis 2006
78
Why Lawyers Need to Understand Finance
• Personal Life
– You may want to buy a car or house.
– To save for a child’s education
– To plan for retirement
– In case you win the lottery, to value
your winnings.
© Steven J. Willis 2006
79
Why Lawyers Need to Understand Finance
• Personal Life
– You may want to buy a car or house.
– To save for a child’s education.
– To plan for retirement
– In case you win the lottery, to value
your winnings.
© Steven J. Willis 2006
80
Why Lawyers Need to Understand Finance
• Personal Life
– You may want to buy a car or house.
– To save for a child’s education.
– To plan for retirement.
– In case you win the lottery, to value
your winnings.
© Steven J. Willis 2006
81
Why Lawyers Need to Understand Finance
• Personal Life
– You may want to buy a car or house
– To save for a child’s education
– To plan for retirement
– Or . . . you may win the lottery, and then
you must value your winnings.
© Steven J. Willis 2006
82
Why Lawyers Need to Understand Finance
• Of course, many examples involve Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
83
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
84
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
85
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
86
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
87
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
88
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
89
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
CAUTION
90
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
CAUTION
Don’t be
Alarmed!
91
Why Lawyers Need to Understand Finance
• Tax Law
– Section 7872: below market loans
– Section 1272: original issue discount
loans
– Section 1275: market discount loans
– Section 467: pre-paid or post-paid rent
– Section 461(h): to value the impact of
deferred deductions
– The Schlude case: to value the impact
of early accrual
© Steven J. Willis 2006
CAUTION
Don’t be
Alarmed!
Unless you are taking
the tax portion of this
course, you need not
understand tax law to
understand financial
calculations.
92
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
93
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
94
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
95
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
96
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
97
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money.
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
98
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money.
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
99
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money.
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
100
Why Lawyers Need to Understand Finance
To summarize:
• Like it or not, lawyers need to understand
financial calculations . . . in their personal lives
and in their professional lives.
• It is not sufficient to rely on experts:
– Sometimes the client doesn’t have the money.
– Plus, you need to understand how to communicate
with the expert, how to examine him, and how to
cross-examine him.
© Steven J. Willis 2006
101
Why Lawyers Need to Understand Finance
The good news is:
It is far easier than you might
think!!!
© Steven J. Willis 2006
102
Why Lawyers Need to Understand Finance
The good news is:
It is far easier than you might
think!!!
© Steven J. Willis 2006
103
Download
Related flashcards

Finance

14 cards

Credit

13 cards

Banking

30 cards

Finance

16 cards

Banks of Russia

30 cards

Create Flashcards