Lesson 5: Investing Fundamentals - Template
Investment Readiness Assessment
Financial Foundation
Prerequisite | Status | Notes/Action Items |
Emergency fund established (3-6 months) | â–¡ Yes â–¡ No â–¡ Partial | |
High-interest debt eliminated | â–¡ Yes â–¡ No â–¡ Partial | |
Clear financial goals with timeframes | â–¡ Yes â–¡ No â–¡ Partial | |
Basic understanding of investment options | â–¡ Yes â–¡ No â–¡ Partial |
Risk Tolerance Assessment
Answer these questions to help determine your risk tolerance:
- How would you react if your investments dropped 20% in value? â–¡ Sell everything to prevent further losses â–¡ Sell some investments to reduce risk â–¡ Do nothing and wait for recovery â–¡ Buy more while prices are lower
- Which statement best describes your investment approach? â–¡ I want to preserve my capital with minimal risk â–¡ I want some growth but am concerned about losses â–¡ I want good growth and can tolerate some volatility â–¡ I want maximum growth and can tolerate significant volatility
- When do you need to access this money? â–¡ Within 5 years â–¡ 5-10 years â–¡ 10-20 years â–¡ 20+ years
- How much investment experience do you have? â–¡ None â–¡ Some knowledge but limited experience â–¡ Moderate knowledge and experience â–¡ Extensive knowledge and experience
Your Risk Tolerance Profile: _________________ (Conservative, Moderate, Balanced, Growth, Aggressive)
Investment Goal Planning
Goal 1: _______________________
Factor | Details |
Target Amount | £ |
Time Horizon | years |
Risk Tolerance | |
Appropriate Asset Allocation | % Shares, % Bonds, % Cash |
Suitable Account Types |
Goal 2: _______________________
Factor | Details |
Target Amount | £ |
Time Horizon | years |
Risk Tolerance | |
Appropriate Asset Allocation | % Shares, % Bonds, % Cash |
Suitable Account Types |
Goal 3: _______________________
Factor | Details |
Target Amount | £ |
Time Horizon | years |
Risk Tolerance | |
Appropriate Asset Allocation | % Shares, % Bonds, % Cash |
Suitable Account Types |
Investment Platform Comparison
Platform | Annual Fee | Trading Costs | Investment Options | Account Types | Minimum Investment | User Experience | Selected? |
% or £ | £ | □ | |||||
% or £ | £ | □ | |||||
% or £ | £ | □ |
Selected Platform: _______________________ Reasons for Selection: _______________________
Investment Selection Worksheet
Shares/Equity Funds
Fund Name | Type (Index/Active) | Geographic Focus | Expense Ratio | Minimum Investment | Allocation % | Amount |
% | £ | % | £ | |||
% | £ | % | £ | |||
% | £ | % | £ | |||
TOTAL SHARES | % | £ |
Bond/Fixed Income Funds
Fund Name | Type (Government/Corporate) | Duration | Expense Ratio | Minimum Investment | Allocation % | Amount |
% | £ | % | £ | |||
% | £ | % | £ | |||
TOTAL BONDS | % | £ |
Other Investments (Property, Commodities, etc.)
Investment Name | Type | Expense Ratio | Minimum Investment | Allocation % | Amount |
% | £ | % | £ | ||
% | £ | % | £ | ||
TOTAL OTHER | % | £ |
Cash/Money Market
Account | Interest Rate | Allocation % | Amount |
% | % | £ | |
TOTAL CASH | % | £ |
Overall Portfolio Summary
Asset Class | Target Allocation | Actual Allocation | Amount |
Shares/Equity | % | % | £ |
Bonds/Fixed Income | % | % | £ |
Other Investments | % | % | £ |
Cash | % | % | £ |
TOTAL PORTFOLIO | 100% | 100% | £ |
Investment Implementation Plan
Account Setup
Account Type | Provider | Initial Funding | Date to Open |
£ | |||
£ | |||
£ |
Regular Investment Schedule
Account | Investment | Amount | Frequency | Start Date |
£ | ||||
£ | ||||
£ |
Rebalancing Plan
Rebalancing Frequency: â–¡ Quarterly â–¡ Semi-annually â–¡ Annually â–¡ When allocations drift by ____%
Asset Class | Action If Over Target | Action If Under Target |
Shares/Equity | ||
Bonds/Fixed Income | ||
Other Investments | ||
Cash |
Investment Performance Tracking
Review Date | Total Portfolio Value | Change Since Last Review | Notes |
£ | % | ||
£ | % | ||
£ | % | ||
£ | % |
Market Downturn Response Plan
If the market drops significantly, I will: - â–¡ Continue regular investments as planned - â–¡ Increase investments if possible - â–¡ Rebalance to maintain target allocation - â–¡ Avoid checking portfolio more than _____ (frequency) - â–¡ Review but not change long-term strategy - â–¡ Other actions: _______________________
I will NOT: - â–¡ Panic sell investments - â–¡ Try to time the market - â–¡ Make emotional investment decisions - â–¡ Listen to sensationalist media coverage - â–¡ Other actions to avoid: _______________________