Personal Investing Part 2 – Measuring Return and Building an Investment Plan

This video covers the following learning objectives:

• Explain how the return on an investment is measured

  • Covered through discussions of total return, percentage return, annualized return (CAGR), and risk-adjusted return.

• Recognize the types of information sources for evaluating investments

  • Covered by identifying company reports, analyst reports, financial media, professional advisors, government agencies, and online tools/platforms.

• Discuss the steps involved in establishing and managing an investment plan

  • Covered through a 6-step investment planning process:

    1. Set Financial Goals

    2. Assess Risk Tolerance

    3. Develop Asset Allocation

    4. Select Investments

    5. Implement the Plan

    6. Monitor and Adjust