- Tax Planning
- Investments 1: Before you Invest
- Investments 2: Your Investment Plan
- Investments 3: Securities Market Basics
- Investments 4: Bond Basics
- Investments 5: Stock Basics
- Investments 6: Mutual Fund Basics
- Investments 7: Building Your Portfolio
- Investments 8: Picking Financial Assets
- Investments 9: Portfolio Rebalancing and Reporting
- Retirement 1: Basics
- Retirement 2: Social Security
- Retirement 3: Employer Qualified Plans
- Retirement 4: Individual and Small Business Plans
- Estate Planning Basics
Financial Plan Assignments
Understanding yourself is a critical part of investing. It is important that you understand not only your personal view of investing, but also your family view of investing. Start by taking the simple risk-tolerance test, found in Learning Tool 16: Risk-Tolerance Test. The test gives simple recommendations for possible asset-allocation targets (asset-allocation targets will be discussed later). Know how much risk you are willing to take.
Review Learning Tool 21: Key Questions on Money in the Family. What are the major experiences you have had that have influenced your views on money and investing? What were you taught about money and investing when you were growing up? What do you think your parents would say if you asked them what they would have done differently regarding these topics? How are you going to teach you children about these topics?
Review the top of the investment hourglass. Where are you on the top of the hourglass? Are your priorities in order? Do you have adequate health and life insurance? Are you out of consumer and credit card debt? Do you know your goals and your budget, and are you ready to begin writing your investment plan? Determine where you are and determine the steps you must take before you begin investing.
You are ready to start creating your investment plan. First, copy Learning Tool 5A: An Investment Plan Example. While you do not need to know the entire Plan today, it is important that you read through this Plan. For this course, you will need to complete this Investment Plan. Instructions for filling out this Investment Plan are found in Learning Tool 5B: Investment Plan Example Instructions.
Second, complete the introduction to the Investment Plan and add the information on yourself and your spouse if married including names and ages.
Third, complete the introductions to each of the four sections. In the introduction to Section I, add the different accounts you will use. It is acceptable to include all the listed accounts as you will likely use most of them during your lifetime. In addition, you must determine two separate time stages for this Investment Plan. Generally, these time stages equate to your time before retirement as Stage 1 and time in retirement as Stage 2. Add this information.
Fourth, take the risk tolerance test Learning Tool 16: Risk-Tolerance Test. This will help you understand what kind of investor you are. You can take this test, or your can take any number of tests available on the internet. After taking this test, fill out the type of investor you are in Section I B.
Fifth, using that risk tolerance test results, develop equity and bond targets for time stages 1 & 2 for Section III.C.1. and III.C.2. Start first with the general rule of thumb of your age in bonds. Then, after taking the risk tolerance test, adjust those allocations taking into account your risk tolerance. See the notes at that back of the risk tolerance test if you have questions.
