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 diversifiedknow if stocks are meeting 14.9% thresholdknow if an issue is too large a % of portfolioable to handle complex transactionsRecord Keeping leads to greater self-reliance.
4 NAIC Portfolio Record Keeper So what’s 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, reinvestmentsIntermediate, advanced: spin-offs, mergers, transfers.Security types to include:Beginners or short class: money market funds, stocks, funds, dripsAdvanced or long class: bonds, CD’s, preferred stocks, others.
5 NAIC Portfolio Record Keeper So what’s 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 ResourcesVisit our web site atContact us to schedule a presentation for your group or fair …
6 In this session, we’ll 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 CDAfter installation, begin PRKReview home page information for quick overviewNext, creating a new portfolio:each account in a separate portfolioeasily reconcile to statementstaxable vs. non-taxable accountseasily 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 fundmake depositdemonstrate purchases (stocks, funds)new assetsexisting assetsUpdate pricesaccess to Internet for instant pricingPortfolio Appraisal Reportcompare portfolio costs and market valuesDiversification toolsbalance investments with long-term goals
8 Income & Sale Transactions ... the basics of PRK….demonstrating features that your local group will find educational, while leading to better portfolio management of their investments.Income & Sale Transactionsinterest and dividends, capital gain distributionsreinvestment of incomeselecting tax lots, planning tax consequencesIncome & Sold Securities Reportall the necessary information for IRSTax Basis Reportlot-by-lot accounting
9 Other transactions as time permits: ... 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 splitsspin-offsmergerstransfersAs of date reportingValuation ratiosInternet access to research, news...
10 Summary: Why is Record Keeping Important? Reconcile statementsKeep track of security basischanging tax lawsMake more informed decisions during yearweed and feedmonitor diversification to meet long-term goalsPrepare tax returnsHandle complex transactions like spin-offs, mergers, etc. for IRS accuracyKnow where you are, to get where you want to goBecoming more educated about what you ownGaining 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!”