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NAIC Portfolio Record Keeper Teaching Guide. Why Teach NAIC Portfolio Record Keeper? Educational: record keeping improves the investment process! Reinforces.

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Presentation on theme: "NAIC Portfolio Record Keeper Teaching Guide. Why Teach NAIC Portfolio Record Keeper? Educational: record keeping improves the investment process! Reinforces."— Presentation transcript:

1 NAIC Portfolio Record Keeper Teaching Guide

2 Why Teach NAIC Portfolio Record Keeper? Educational: record keeping improves the investment process! Reinforces the NAIC guidelines for successful long-term investing. Leads to greater self-reliance. Compliments SSG analysis tools. Official software offering from the NAIC.

3 Teach PRK from Perspective that record- keeping improves investment education! Understand & Build Portfolios Consistent to Goals, Risk Tolerance... Reinforce NAIC Guidelines … Record-keeping is EDUCATIONAL!! Without record-keeping, investors are less likely to … –know if their portfolio is properly diversified –know if stocks are meeting 14.9% threshold –know if an issue is too large a % of portfolio –able to handle complex transactions Record Keeping leads to greater self-reliance.

4 NAIC Portfolio Record Keeper So whats the best way to teach PRK?... Plan your PRK class: –Decide what level to teach: Beginner, Intermediate or Advanced? –Decide what to teach: Record Keeping, Portfolio Management, both? Compliment to SSG program (morning/afternoon sessions) –Transactions to include: Beginners: buys, sales, income, reinvestments Intermediate, advanced: spin-offs, mergers, transfers. –Security types to include: Beginners or short class: money market funds, stocks, funds, drips Advanced or long class: bonds, CDs, preferred stocks, others.

5 NAIC Portfolio Record Keeper So whats the best way to teach PRK?... Using PRK, exemplify common functions... –create portfolios … –enter transactions … –display reports and graphs … Remind audience of the importance of record keeping … –making better investing decisions during year... –make decisions while considering tax consequences... Combine a program on using the SSG to pick stocks, PRK to track … Use available PowerPoints, handouts, available demos, etc. –NAIC Resources Visit our web site at Contact us to schedule a presentation for your group or fair … –

6 In this session, well review the basics of PRK and demonstrate features that your local group will find educational, while leading to better portfolio management of their investments. 1st step: Installing PRK CD –After installation, begin PRK –Review home page information for quick overview Next, creating a new portfolio: –each account in a separate portfolio –easily reconcile to statements –taxable vs. non-taxable accounts –easily can aggregate multiple portfolios for combined view….

7 ... the basics of PRK….demonstrating features that your local group will find educational, while leading to better portfolio management of their investments. Next, initial transactions and purchases: –create money market fund –make deposit –demonstrate purchases (stocks, funds) new assets existing assets Update prices –access to Internet for instant pricing Portfolio Appraisal Report –compare portfolio costs and market values Diversification tools –balance investments with long-term goals

8 ... the basics of PRK….demonstrating features that your local group will find educational, while leading to better portfolio management of their investments. Income & Sale Transactions –interest and dividends, capital gain distributions –reinvestment of income –selecting tax lots, planning tax consequences Income & Sold Securities Report –all the necessary information for IRS Tax Basis Report –lot-by-lot accounting

9 ... the basics of PRK….demonstrating features that your local group will find educational, while leading to better portfolio management of their investments. Other transactions as time permits: –stock splits –spin-offs –mergers –transfers As of date reporting Valuation ratios Internet access to research, news...

10 Summary: Why is Record Keeping Important? Reconcile statements Keep track of security basis –changing tax laws Make more informed decisions during year –weed and feed –monitor diversification to meet long-term goals Prepare tax returns Handle complex transactions like spin-offs, mergers, etc. for IRS accuracy Know where you are, to get where you want to go Becoming more educated about what you own Gaining self reliance

11 Circle of Record Keeping -NAIC Portfolio Record Keeper handles it all! - Manage Your Portfolios - Make Better Decisions - Reinforce NAIC Guidelines - Detailed Record Keeping - Become More Self Reliant!

12 What other contacts are saying... I have used PRK for a while and have found it very useful, not only for my personal record keeping, but as a tool to teach issues such as Portfolio Diversification to clubs. It is very powerful. One of the biggest challenges is teaching people why they need to keep records. By using some of the graphing capabilities of PRK, a club or an individual can get information that will motivate them to keep accurate records and motivate club members to research a wider variety of stocks in different industries and different sizes, which can lead to better long term results.

13 What other contacts are saying... People enjoyed the demo I did on PRK. I was surprised at the number of people who do not understand the book keeping necessary to maintain good and accurate records. I described it as buying a home and keeping track of all the improvements over the years. When you sell it is to your advantage to have accurate records of cost to determine your capital gains. When I showed how PRK tracks this for investments, people were very impressed and realized the importance of the software.

14 What other contacts are saying... The NAIC Portfolio Record Keeper demonstrations I did last weekend were very successful. Many people were very impressed with the software's ability to track many types of assets, splits, spin-offs, DRIPs, diversification, time-weighted performance and comparison to various indices, selection of specific blocks of the asset when selling, and reports showing taxable and non-taxable interest, dividends, short and long-term capital gains and losses for the year by company. In a word, they were wowed!


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