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Student Participation Example: The NAOI Return Required Calculator

Hardcopy books have no way to allow students to participate in the learning process. The online component of NAOI Study Courses enables us to provide interactive tools that make the educational experience more meaningful and effective. Following is an example of an online calculator presented in all NAOI Study Courses. This is an example of how NAOI content enables you to become involved in the learning environment.

Setting Goals and the NAOI Return Required Calculator

It is an unfortunate fact that most individual investors today allow third parties such as brokers or financial advisors to define their investing goals for them. Advisors simply determine your risk tolerance, how much you have to invest now, how much you can contribute on a regular basis and then come up with a computer generated list of stock/fund recommendations. They then use historical returns data to project what your goals CAN BE at a predefined future period. That's it. Your goals are predetermined. There is NO consideration for the fact that you may be willing to commit time and effort to the investing process in order to meet goals that you really want to achieve.

The NAOI takes a different approach. We believe that you have the potential to meet any goal that you want if you are willing to learn about investing and become involved in the investing process. We believe that if you are willing to put forth the effort required to graduate from an NAOI Study Course then you have what it takes to set your own goals.

The Web presents many calculators that will show you what your portfolio will be worth given a starting amount, a periodic contribution and a return rate. What is not so common, and what the NAOI provides, is a calculator that lets you determine a goal amount that gets you excited and then shows you the commitment that you must make in order to reach it. The following NAOI Return Required Calculator is just such a resource.

Enter an investing goal that you really want to attain. Enter your initial deposit, a monthly contribution, your time horizon and your tax rate (enter zero for tax deferred accounts). You will then be shown the return rate required from your portfolio each year to achieve the goal. NAOI Study Courses are designed to show you how to reach any return goal within reason. The ONLY variable is your willingness to commit time and effort to the process.

Note 1: Enter percentages as whole numbers - e.g. for 6% just enter 6.
Note 2: DO NOT enter commas or decimal points in your numbers - e.g. for one thousand enter 1000 
Note 3: All figures are estimates only

Your $ Goal Initial $ Deposit Monthly $ Deposit Number of Years % Tax Bracket     % Return Required

This calculator is presented here only as an example of how NAOI Study Courses allow you to participate in the learning process. The ability for students to interact with the material is one reason we chose the multi-media format and it is critical to effective learning. This is one of many reasons why no hardcopy investing book can compete with NAOI education.

Copyright © 2004 NAOI