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Course Planning Example: Transforming a Goal into a Plan
All of your investing
decisions should be made within the context of a plan. This page is
presented to illustrate a "before and after" scenario for one
of your investing goals. The NAOI Study Courses show you how to define
the investing goals that you really want to achieve in life and then
lead you through a step-by-step process for transforming each of your
goals into a portfolio of specific investments and an action plan.
Below we show a simple Retirement investing goal with a
target dollar amount and a time horizon. Defining these simple factors is where you will start with each of your goals.
Below the Retirement goal statement is a fully detailed Investing Plan.
The NAOI Study Course that you take will lead you through each step in a
process that transforms a simple goal into a detailed action
document.
|
An
Initial Investing Goal |
Following is a simple investing goal. You
probably will have more than one. Shown is the basic information you need
to start the investment planning process.
| Goal |
Amount Needed |
Time Horizon |
| Retirement |
$2,000,000 |
15
years |
|
A
Comprehensive Investment Plan for the Goal
|
After completing an NAOI Study Course you will have transformed your simple goal into a
detailed Investment Plan and Portfolio of specific investments as
illustrated below. You can see that the final result is an
"action" document that you can use to guide your investing
activities and to monitor the progress of each element of your portfolio. This
is what you will create for each of your goals in the NAOI Study Course
that you select.
Note that there is one final step to the planning
process following the one that resulted in the plan shown below. The final
step involves selecting specific investments for each category. We do not
show the final step in this illustration because we do not want to list
specific fund names as they may be misinterpreted as recommendations. The
Study Course you choose will show you how to select the best specific
funds for each category shown in the plan below and the best stocks for
your Active Segment should you choose to include one.
Initial
$ Amount
To Invest |
Target
Return % |
%
of Portfolio You Feel
Comfortable Actively Managing |
| $100,000 |
15.0% |
15% |
Passive
Segment: 85 % of Total Portfolio
| Investment |
Target
Return % |
Allocation
% |
Contribution
To Return % |
Start
$ Amount |
$
Target
Year End |
| Cash
Equivalent |
|
Money Market Fund
|
3%
|
5%
|
.15%
|
$4250
|
$4378
|
|
|
|
|
|
|
|
|
Total
Cash Equivalent >>
|
3%
|
5%
|
.15%
|
$4250
|
$4378
|
| Bond
Funds |
|
Total Bond Index Fund
|
7%
|
5%
|
.35%
|
$4,250
|
$4,548
|
|
High Yield Bond Fund
|
9%
|
5%
|
.45%
|
$4,250
|
$4,633
|
|
GNMA Bond Fund
|
8%
|
5%
|
.40%
|
$4,250
|
$4,590
|
|
|
|
|
|
|
|
|
Total
Bond Funds >>
|
8%
|
15%
|
1.2%
|
$12,750
|
$13,770
|
|
Stock Funds |
|
Total Stock Index Fund
|
12%
|
20%
|
2.4%
|
$17,000
|
$19,040
|
|
Large Cap Growth Fund
|
14%
|
15%
|
2.1%
|
$12,750
|
$14,535
|
|
Foreign Value Fund
|
12%
|
15%
|
1.8%
|
$12,750
|
$14,280
|
|
Small Cap Value Fund |
17%
|
10%
|
1.7%
|
$8,500
|
$9,945
|
|
Real Estate ETF |
13% |
10% |
1.3% |
$8,500 |
$9,605 |
|
Healthcare ETF
|
13% |
10% |
1.3%
|
$8,500
|
$9,605
|
| |
|
|
|
|
|
|
Total
Stock Funds >>
|
13.25%
|
80%
|
10.6%
|
$68,000
|
$77,010
|
|
Total
Fund Portfolio >>
|
11.95%
|
100% |
12%
|
$85000
|
$95158
|
Active Segment:
15 %
of Total Portfolio
| |
Required
Return % |
Start
$ Amount |
Target
Year End $ Amount |
| Individual
Stocks |
32% |
$15,000 |
$19,842 |
Total Portfolio:
| |
Initial
$ Amount |
Target
Return % |
Target
Year End $ Amount |
| Passive
Segment |
$8,5000 |
11.95% |
$95,158 |
| Active
Segment |
$15,000 |
32% |
$19,842 |
| Total
Portfolio |
$10,0000 |
15% |
$115,000 |
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