Investing 101
Lesson 4: Practical Guide for Investors
Lesson 4 Field Trip
Time Estimate 30 to 60 minutes
Destination This week you'll visit sites for determining asset allocation. You'll also learn about financial calculator tools.
Instructions As discussed earlier, asset allocation is the key to successfully meet your long-term investing goals. This week's field trip will introduce you to interactive tools for developing your asset allocation and measuring your portfolio's success.
- SmartMoney's Asset Allocation System helps you plan your asset allocation mix. There is also a special allocator for retirees and for parents, if those fit your current needs better. Go to: http://www.smartmoney.com/si/tools/oneasset/
- SmartMoney's Fund Portfolio Builder allows you to interactively allocate assets using a graph that moves, as you pick various asset allocations. Be sure you set your percentages to 100%. If below 100%, the tool assumes your money is outside the market, not earning a significant return. Go to: http://www.smartmoney.com/si/fundbuilder/
- CBS MarketWatch's build your own portfolio tool, gives examples of various income preservation and aggressive growth portfolios, tied to their top 25 mutual fund picks for each type. You can also view the long-term performance of each portfolio type. Go to: http://cbs.marketwatch.com/funds/feature/fundpick.htx?source=htx/http2_mw
- Financial Visions develops calculators for Web sites. During your visit, try out the calculators that best fit your current needs. You can play with 60 of their most popular ones all in one location. Calculators are available for retirement planning, investments, savings, debt management, financial statements, insurance needs, taxes, college planning, and the time value of money. Go to: http://www.fvisions.com/02WebCal02Calculators.htm
Study Questions
- Which method of asset allocation did you find the most helpful and why?
- In playing with the calculators, is there one in particular you want to recommend to the class?
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