Core Workshop #3:

We begin by handing out the final, revised Four Buckets of Money goal plans, and the drafts of their Personal Investment Policy Summary. Then we discuss the different types of investment accounts available – for example, brokerage accounts, retirement accounts, CDs and bank accounts, etc. - and how they can be combined into an integrated Investment Portfolio. Using their own Personal Investment Policy Summary as a basis, we discuss the optimal balance of liquid cash, stocks and bonds. As they follow on a worksheet listing all their accounts, we guide them through the process of specifically identifying which ones should have stocks, which should have bonds, which should have cash.

We talk about the place of rental real estate in a portfolio, and the role a residence plays in the financial plan. We explain The Investment Ladder, a valuable guide as to which type of account – bank account, 403(b), IRA, 529 plan, etc. – they should place their money into as they save.

Finally, we teach them how to make specific stock and bond investment selections, using the funds available in their own 401(k)/ 403(b) plan as an example. We tell them how to identify similar funds for investing outside the 401(k)/403(b). When finished with this Workshop, each participant has written down exactly what they need to tell their 401(k)/403(b) provider and/or brokerage consultant to get their investments in line with their financial planning.