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$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
$$$ $$$
$$$ The Feeling's Mutual $$$
$$$ $$$
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Version 2.0.92
Release 3/15/93
By Interpretive Software
--------------------
Product Description:
--------------------
"The Feeling's Mutual" is a mutual fund database and financial
planner for the novice to advanced investor. Through easy-to-use
input screens and helpful examples, "The Feeling's Mutual" leads
the user through the paces of thoughtfully defining financial
objectives and searching for a mutual fund which meets their
criteria. The program achieves this by dividing the process into
two parts: projection of the user's investment needs, goals and
estimated results and a comparison of many of the mutual funds
available.
A wealth of information on over 300 funds (700 in expanded version)
of the largest 25 mutual fund families is incorporated into the
program, using such data as the fund objective, historical returns,
size, minimum initial investment, load, expenses and yield for the most
recent year. Program perks worth noting are the easy to use interface
and the availability of help screens throughout the program. A "Quick
Start" guide at the beginning of the manual gives the user a taste
of what can be accomplished with the program.
Copyright 1992 Interpretive Software Inc.
-----------------
Table of Contents
-----------------
Introduction 2
Quick start tour of the software 3
Understanding Your Investment Objectives 6
Why are you saving? 6
Using the projections software 7
College savings example 7
Retirement example 11
Inflation issues / Saving your assumptions 15
Comparing Mutual Funds 17
Using the comparison software 18
Individual Funds 18
Fund Families 23
MS-DOS Reference Guide 26
--------------------------------------
Important Files on this Shareware Disk
--------------------------------------
REGISTER.DOC Registration information and form
UPDATE.DOC Update order form
README.DOC Other important information
-----------------
Technical Support
-----------------
Technical Support is available to registered users through any of the
following methods:
Phone: (804) 979-0245
Fax: (804) 979-2454
CompuServe ID: 70401, 2062
Mail: Address Below
Send your questions, suggestions, registrations and update orders to:
Interpretive Software, Inc.
1932 Arlington Blvd, Suite 107
Charlottesville, VA 22903
- 1 -
-----------------
Limited Liability
-----------------
As is the case with all writings about investments, we need to release
ourselves from any liability. Although we believe all information
contained in the software and manual to be correct, we do not guaranty
its validity. We offer no investment advice of any kind and are not
liable for any losses (or gains) you may incur.
By downloading, copying or using this software, you release us from any
liability. In no event, will Interpretive Software, Inc. or the authors
of this program and manual be liable for direct, indirect, special,
incidental, or consequential damages resulting from any defect in the
software or its documentation, even if advised of the possibility of
such damages. In particular, the authors shall have no liability for
any programs or data stored in or used with the computer products,
including the cost of recovering such programs or data. This software
is sold, "as is," and you, the purchaser, are assuming the entire risk
as to its quality and performance. The warranty and remedies set forth
above are exclusive and in lieu of all other, oral or written, express
or implied.
This program is produced by a member of the Association of Shareware
Professionals (ASP). ASP wants to make sure that the shareware principle
works for you. If you are unable to resolve a shareware-related problem
with an ASP member by contacting the member directly, ASP may be able
to help. The ASP Ombudsman can help you resolve a dispute or problem with
an ASP member, but does not provide technical support for members'
products. Please write to the ASP Ombudsman at 545 Grover Road, Muskegon,
MI 49442-9427 or send a Compuserve message via CompuServe Mail to ASP
Ombudsman 70007,3536.
_______
____|__ | (R)
--| | |-------------------
| ____|__ | Association of
| | |_| Shareware
|__| o | Professionals
-----| | |---------------------
|___|___| MEMBER
Copyright 1992 Interpretive Software Inc.
- 2 -
------------
Introduction
------------
When did you first discover mutual funds?
a) My CDs had matured and I didn't want to reinvest at 4.0% return but
there were no other alternatives at the bank. A friend of mine said
I might want to look into mutual funds.
b) My retirement plan at work requires me to invest in one of these funds
and I had no idea where to begin.
c) My stock broker (financial planner, insurance agent, etc.) suggested
that I invest in a mutual fund for my long term savings needs.
d) I was at a party when someone started talking about Magellan. Frankly,
I didn't understand why a 16th century explorer was investing in stocks
and bonds. But he was getting a 30% return on his investment! Perhaps,
I thought, I should explore this further...
If you were like many people, "all of the above" would have been a reason-
able answer. This software and manual is for those people and perhaps you
too. Mutual funds (and investing in stocks and bonds) is a rather compli-
cated subject. Our purpose in writing this software and manual is to help
you make an informed investment decision. This product will help you deter-
mine your investment needs, understand your investment alternatives and
finally, choose an appropriate mutual fund.
The software basically provides you with two tools to help you achieve these
goals. The "Projections" menu options help you better understand your
investment needs, goals and estimated results. The "Comparison" menu
options compare many of the different mutual funds and mutual fund families
available today.
After a quick start introduction to the software, the remainder of the
manual is divided into two sections which correspond to the two parts of the
software. Part 1 focuses on your saving objectives. Here you'll
learn how to estimate the amount you'll need (or have) for retirement or
some other savings goal. Part 2 discusses how to go about choosing an
appropriate mutual fund and mutual fund family.
We were fortunate to have received a great deal of advice and feedback from
a number of people who either helped us test the early versions of the
product, edit the manual or provide marketing assistance. We'd especially
like to thank the ASP, Mary Deighan, Jim Fiordalisi, Jim Hood, Payton James,
Karen James, Dee Jay Kingery, William Luers, Ken Ott, Donald Simroth, Shaila
Sateesh, Ken Smith and, of course, all the BBSs, users groups and shareware
disk vendors who got (and will continue to get) this product into your hands.
We hope this manual and software answers some of the questions you've had
about mutual funds and also helps you formulate some new ones. Good luck
with your investments!
- 3 -
-----------
QUICK START
-----------
The purpose of the next three pages is to quickly get you up and running
through the use of an example investment decision. The software can be used
on either a hard or floppy disk. In either case, start the program by
typing TFM at the A> or C> and pressing the [Enter] key.
Examples:
A>TFM Press the [Enter] key
or, if running from a subdirectory on your hard disk (such as TFM92),
C:\TFM92>TFM Press the [Enter] key
Use the arrow keys to move through the menu choices (right arrow and down
arrows). Select menu options by highlighting your desired choice and
pressing the [Enter] key. First, let's work through an example using the
"Projections - Savings Projection" menu option. Note: "Projections" refers
to the main menu (horizontal across the top of the screen), while "Savings
Projection" is a menu choice under the "Projections" main menu.
Example: You'd like to start saving money for the down-payment on a house
in 5 years. You estimate that you'll need $15,000 and you'd like to invest
your money in a fairly safe mutual fund. What are your options?
First, let's estimate how much you'll need to put aside each year, assuming
a return of 6% (a CD in a bank). Enter the following values on the screen.
Move around on the screen using the arrow keys or the [Tab] key (for moving
to new boxes or to the < Buttons >. Highlight the location where you want
to put the number, type in the value and press [Enter].
-----------------------------------------------------------------------------
Starting balance 0 Nothing saved yet
Annual Investment Leave blank To be calculated
Rate of return 6.0 6% on CD in bank
Number of periods 5 5 years
Ending balance 15000 Your savings goal
Investment period Annual Annual basis
-----------------------------------------------------------------------------
Select <Recalc> either by "tabbing" to the <Recalc> button or by pressing
Ctrl-R (for [R]ecalc). The estimated amount you'll need to put aside each
year is $2,510. Select <Cancel> to return to the menus (and discard
changes). You can select <Cancel> the same way as you selected <Recalc> or
by pressing the [Esc] key. Now let's generate some alternative mutual fund
investments. Along with the CD, you'd also consider investing in a bond fund
or perhaps even an income fund, but you're concerned about putting your
savings at risk. Let's look one of those categories and weed out any funds
which haven't been around for 5 years, have a historical return under 6% or
a load.
Choose the "Compare - Individual Funds" menu item. Fill out the screen as
shown on the following page.
- 4 -
Menu Option: Compare - Individual Funds
+---------------------------Fund Selection---------------------------+
| +-Selection Criteria---------------------------------------------+ |
| | Show If | |
| | > = < Value N/A? | |
| | 1 Year Return (*) ( ) ( ) [ ] [X] | |
| | 3 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | 5 Year Avg. Return (*) ( ) ( ) [ 10.0%] [ ] | |
| | 10 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | Yield (*) ( ) ( ) [ ] [X] | |
| | Load (%) ( ) (*) ( ) [ 0.0%] [X] | |
| | Expenses (%) ( ) ( ) (*) [ ] [X] | |
| | Min. Investment ( ) ( ) (*) [ ] [X] | |
| +----------------------------------------------------------------+ |
| +-Fund Objectives-------+ +-Fund Families--------+ |
| | [ ] Growth | | AIM | <Report> |
| | [X] Income | | Alliance | |
| | [ ] International | | Amer Capital | |
| | [ ] Specialty | | American | < Sort > |
| | [ ] Government Bonds | | Dean-Witter | |
| | [ ] Corporate Bonds | | Dreyfus | |
| | [ ] Municipal Bonds | | Fidelity | <Cancel> |
| +-----------------------+ +---------------------- |
+--------------------------------------------------------------------+
Now select <Report>. You should get a list of alternative income funds.
Highlight one of the funds and choose <Detail>. This will show you more
information about a fund similar to what is shown below:
Menu Option: Compare - Individual Funds - Report - Detail
+-----------------Fund Detail: Financial Industrial Income-----------------+
| +----------------Financial Industrial Income (1991)--------------------+ |
| | Family Financial | |
| | Phone (800) 525-8085 | |
| | Fund Objective Income (Equity/Income) | |
| | Dividends Paid Quarterly | |
| | Size (Millions) $1,597 All Funds | |
| | Min. Investment $250 Return Percentile | |
| | Load 0.00% Yield 2.6% 58 | |
| | Expenses 0.94% 1 Year Return 46.3% 13 | |
| | Cash Holdings 8.0% 3 Year Avg. 24.9% 10 | |
| | Stock Holdings 74.0% 5 Year Avg. 18.7% 8 | |
| | Bond Holdings 18.0% 10 Year Avg. 20.1% 4 | |
| | | |
| | Note: | |
| | [ ] | |
| | [ ] | |
| +----------------------------------------------------------------------+ |
| |
| < Save > <Family> <Cancel> |
| |
+--------------------------------------------------------------------------+
- 5 -
Select <Cancel> to bring you back to the fund selection screen. Now select
<Project> and enter the following values:
-----------------------------------------------------------------------------
Starting balance 0 Nothing saved yet
Annual Investment 2510 Amount you'll save / yr
Rate of return 18.7 Based on fund
Number of periods 5 5 years
Ending balance Leave blank To be calculated
Investment period Annual Annual basis
-----------------------------------------------------------------------------
When you select <Recalc> the ending balance shows $21,611. This projection
illustrates what you would have saved by today had you invested $2,510 each
year and had an average return of 18.7% on your investment (average 5 year
return for the selected fund). The difference between $21,611 and $15,000
is due to the higher return on this investment. However, you're also taking
on more risk than with an investment in CDs. You may want to find one or
two funds in each category and request a prospectus on each, then assess the
trade-offs with risk, return and performance.
- 6 -
----------------------------------------
UNDERSTANDING YOUR INVESTMENT OBJECTIVES
----------------------------------------
Investing is an activity which requires some discipline. You must have the
discipline to save money and also take the time to invest wisely and monitor
your results. It always sounds so easy in the IRA or mutual fund brochures,
but it really takes a great deal of time and effort.
Sometimes when we get involved in stocks and bonds, we lose sight of why we
invested in first place. It's fairly easy to get caught up in the roller
coaster ride of the swings of the market. Think about how hard you worked
to earn the money before you invest. Maybe that will slow you down if you
are an impulsive investor. Conversely, if you're an impulsive spender and
haven't had the patience to save up to now, consider the long-term
consequences of not putting aside some money today in order to live better
tomorrow.
Why Are You Saving?
-------------------
The two main reasons most people save are retirement and their children's
education. You may have others: building equity for the down payment on a
house, saving for a vacation, etc. Mutual funds and stocks and bonds should
not be your only savings vehicle. Before embarking on an investment plan,
it probably makes sense to have a savings account which has 3-6 months of
expenses for emergencies as well as appropriate insurance coverage for you
and your family. Most people would also think of a home as one of the best
ways to build long term equity. Owning a home is a wonderful investment
because it replaces the cost of rent and the interest one pays on your loan
may be tax deductible. So before you start into the market, cover the
basics first.
In order to know how much to save, you need to estimate how much you'll need
down the road. For some purposes, this is easy to figure out. If you want
to go on vacation in a year, you call up your travel agent, find out how
much airline tickets and a hotel will cost, make some estimates for food and
entertainment and add 20% or so just to be sure you have enough. If this
adds up to $2400, you know you need to save $200 each month ($2400 / 12
months in a year).
For longer term savings projects such as retirement or college, it is much
more difficult to estimate your needs. For the most part, the difficulty
lies in making estimates of costs far into the future. A number of new
variables cloud the picture: inflation, the return your savings generates,
changes in your needs, and so on.
- 7 -
However, if you think about it, the costs of estimating that vacation has
some of these issues. What if airline prices rise? If you're traveling
overseas, what happens when the currency exchange rate dips? What if you
decide you'd rather have deluxe accommodations? Perhaps saving for
retirement is more difficult only because it is so far in the future and the
magnitude of the numbers is so great. Don't be overwhelmed by all of it.
If you start early, you'll have plenty of time to make your savings add up.
------------------------------
Using the Projections Software
------------------------------
As discussed above, trying to figure out how much you'll need to save (or
how much you'll have saved if you put aside a certain amount) can be a
fairly tricky calculation. The purpose of the projection software is to
make the calculations simple for you and allow you to try out different
savings scenarios. Our goal is not to tell you exactly what you need to do
(because everything is based on your assumptions), but instead to help you
identify options.
The best way to learn how to use software is to try it out. Therefore,
we'll show you step by step using two examples: saving for college and
saving for retirement. The menu choices used to bring up each screen are
shown above the sample display. Thus, "Menu Option: Projection - Savings
Projection" means select the "Savings Projection" option under the
"Projection" main menu (top line). Your mouse or arrow keys will move you
among inputs in the same "box". Use your mouse or tab key to move from box
to box and to the "buttons" at the bottom of the screen (<Recalc>, <Graph>
and <Cancel>). Spacebar will erase a value. Spacebar (MS-DOS) or clicking
the mouse (Mac) will select a radio button (*) or "toggle" (turn off or on)
a checkbox [X]. Please refer to the appendix for additional instructions
and machine specific options.
Please note that we're not taking into consideration tax implications, etc.
Talk with a qualified professional to fully understand the implications of
your investment alternatives.
Example 1: Saving for your child's college education.
------------------------------------------------------
You've just had your first child and you want to start saving for his or her
college education. You've read in your local paper that the cost of sending
a child to your state college will rise to $150,000 in 18 years. That
figure overwhelms you and your spouse. You think you might be able to put
aside $2,000 each year but you wonder if that will be enough. Some long
term CDs where you were planning on putting the savings are yielding 8.5% at
your local bank.
- 8 -
First let's estimate how much you'd be able to save using the local bank and
saving $2,000 each year. Select the "Savings Projection" menu option under
the "Projection" heading and enter the following values as shown below:
------------------------------------------------------------------------------
Starting balance: 0 No money currently saved.
Annual Investment 2000 Put aside $2,000 each year.
Rate of Return 8.5 Can get 8.5% at the bank in a CD.
Number of Years 18 18 years before the first year of college.
Investment Period Annual Select the annual basis for calculations.
------------------------------------------------------------------------------
Make sure the other fields are blank and select <Recalc>. The screen should
appear as follows:
Menu Option: Projection - Savings Projection
+-------------------Untitled Savings Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Starting Balance [ $0] | |
| | Annual Investment [ $2,000] | |
| | Annual Rate of Return [ 8.500%] | |
| | Number of Years [ 18] | |
| |*Ending Balance [ $85,331] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 0.000%] | |
| | Increase Investment with Inflation [ ] | |
| | Adjust Ending Balance for Inflation [ ] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
The ending balance of $85,331 is an estimate of your savings account at the
end of 18 years. It appears that you won't have quite enough though you are
relieved that you will be able to pay for more than half. Perhaps your
child will be able to get loans for the rest of the cost. After scratching
your head for awhile, you realize that your salaries will probably be
increasing as well. Perhaps you'll be able to put more away each year as
time goes by. Let's assume that you'll at least be able to keep up with
inflation which is currently running at 4.0% each year.
- 9 -
Enter 4.0 in the field next to "Inflation Rate". Leave the other fields as
they were but also check the box which says "Increase Investment with
Inflation" to indicate that you will slowly put aside more each year as your
salary increases. Again, select <Recalc>. Note that "Ending Balance" has
an asterisk in front of it. This indicates that it will be recalculated
when you select the <Recalc> option. The screen should now appear as
follows:
Menu Option: Projection - Savings Projection
+-------------------Untitled Savings Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Starting Balance [ $0] | |
| | Annual Investment (First Period) [ $2,000] | |
| | Annual Rate of Return [ 8.500%] | |
| | Number of Years [ 18] | |
| |*Ending Balance [ $111,713] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 4.000%] | |
| | Increase Investment with Inflation [X] | |
| | Adjust Ending Balance for Inflation [ ] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
The new ending balance of $111,713 reflects the additional amount you'll
save by increasing your annual investment by inflation. You're feeling
somewhat better now (though worried about having a second child!). You can
display a graph of the value of your investment over time by selecting
<Graph>. You may also want to get a printout of the detail of this
schedule. To generate this printout, go up to the "File" menu and select
the "Print" option (or by pressing [F3]. This will allow you to print out
either to your printer or to a text file. Again, for a further explanation
of the printing options, please see the appendix. A sample printed report
is shown on the following page.
- 10 -
Menu Option: Projection - Savings Projection - [new menus] - File - Print
------------------------------------------------------------------------------
Untitled Savings Projection Oct 16, 1992 12:56PM
Starting Balance $0
Annual Investment (First Period) $2,000
Annual Rate of Return 8.500%
Number of Years 18
*Ending Balance $111,713
Inflation Rate 4.000%
Increase Investment with Inflation Yes
Adjust Ending Balance for Inflation No
End of Balance Balance Annual
Year (w/ Infl.) (Infl. Adj) Investment
------ ------------ ------------ ------------
0 0 0 0
1 2,170 2,087 2,000
2 4,611 4,263 2,080
4 10,416 8,904 2,250
6 17,656 13,954 2,433
8 26,620 19,451 2,632
10 37,649 25,434 2,847
12 51,147 31,946 3,079
14 67,594 39,034 3,330
16 87,559 46,748 3,602
18 111,713 55,145 3,896
------------------------------------------------------------------------------
Upon further consideration, you wonder what you would have to put aside in
order to have the full $150,000 saved in 18 years. Enter 150000 in the
field next to "Ending Balance". Then blank out the field next to "Yearly
Invest- ment (First Period) to indicate you want to calculate that value.
Again, select <Recalc>. You should see that you'd need to put aside $2,685
the first year and then increase that amount by 4.0% each year in order to
have saved $150,000 in 18 years.
Of course, there's another way to achieve the $150,000 of savings. If some-
how you were able to increase your return, you might not have to put aside
more than $2,000 (+ inflation). See if you can figure out how to calculate
the return necessary for this to occur.
The answer should be 11.453%. To get this value, enter 2000 in the "Annual
Investment" field and make the "Rate of Return" field blank. Select
<Recalc> again. When you are finished entering assumptions and want to move
on to the second example, select <Cancel> and discard the changes.
As you can see, it is fairly easy to try out different assumption and see
what the effects are on your investment plan. Remember, of course, that
- 11 -
estimates of inflation and return (and perhaps annual investment) are only
assumptions, and will not be the actual values as time goes forward.
However, by better understanding your options, you'll have a much better
grasp of the situation and be able to adjust accordingly as time goes on.
Example 2: Saving for your retirement.
---------------------------------------
You've just turned 40 and realize you're not getting any younger. You know
you've got to start saving for your retirement. To start with, you figure
you and your spouse (both work) can start putting aside $2,000 each year in
an IRA at a local bank which pays 8.0%. How much will you have to retire on
at age 65?
Again, select the "Savings Projection" menu option under the "Projection"
heading and enter the following values as shown below:
------------------------------------------------------------------------------
Starting balance 0 No money currently saved.
Yearly Investment 4000 You each put aside $2,000 each in an IRA.
Rate of Return 8.0 Can get 8.0% at the bank in a IRA account.
Number of Years 25 65-40 = 25 years before retirement.
Investment Period Annual Select the annual basis for calculations.
------------------------------------------------------------------------------
Leave the other fields blank (or make them blank). Then select <Recalc> and
the screen should appear as follows:
Menu Option: Projection - Savings Projection
+-------------------Untitled Savings Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Starting Balance [ $0] | |
| | Annual Investment [ $4,000] | |
| | Annual Rate of Return [ 8.000%] | |
| | Number of Years [ 25] | |
| |*Ending Balance [ $315,818] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 0.000%] | |
| | Increase Investment with Inflation [ ] | |
| | Adjust Ending Balance for Inflation [ ] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
- 12 -
The ending balance of $315,818 sounds pretty reasonable. Perhaps saving for
retirement isn't so difficult after all. On the other hand, though that
seems like a lot, inflation will reduce the value in real terms. What would
the $315,818 be worth in the value of today's dollars?
Again, let's assume inflation runs at an average of 4.0%. Enter 4.0 in the
field next to "Inflation Rate". Leave the other fields as they were but also
check the box which says "Adjust Ending Balance for Inflation" to indicate
that you want to see the ending balance in today's dollars. Again, select
<Recalc>.
The adjusted ending balance (constant dollars) is $118,469. This helps you
understand the true value of your future savings. The effects of inflation
are substantial. You still think, $118,469 is not as good as $315,818, but
not bad.
How long will the $118,469 last? You estimate that you could live on
$30,000 / year (in today's dollars) when you retire. To calculate how long
your principal will last, you'll need to use a different menu option. Go up
to the menus and select "Annuity Projection". Enter the following values as
shown below:
------------------------------------------------------------------------------
Starting balance: 118469 The future value of your savings.
Yearly Income 30000 The $30,000 you want to live on.
Rate of Return 8.0 8.0% at the bank in a IRA account.
Number of Periods Blank To be calculated
Ending Balance 0 Use up your savings
Investment Period Annual Select the annual basis for calculations.
------------------------------------------------------------------------------
Also enter 4.0 for inflation and mark increase income with inflation (so
that you will be able to maintain the same standard of living). Now select
<Recalc>. The screen will appear as shown on the following page:
- 13 -
Menu Option: Projection - Annuity Projection
+-------------------Untitled Savings Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Starting Balance [ $118,469] | |
| | Annual Investment [ $30,000] | |
| | Annual Rate of Return [ 8.000%] | |
| | Number of Years [ 4] | |
| |*Ending Balance [ $0] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 4.000%] | |
| | Increase Investment with Inflation [X] | |
| | Adjust Ending Balance for Inflation [ ] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
Your savings will run out 4 years after you retire (at age 69). Ouch...
Fortunately, you do have some other sources of income. First of all there's
social security which you estimate will provide you with an extra $10,000 of
income / year (you can get an estimate of this from the social security
administration). Second, your spouse does have a retirement plan at work
that will provide 60% of current income ($12,000 / year). This leaves you
with only $8,000 to come up with. Therefore, change the annual income to
$8,000 and <Recalc>. Now you have 21 years before your savings will be
depleted.
On the other hand, your expenses might be more than you expect and you'd
like to have an emergency fund if there are additional problems.
Furthermore, it would be nice to live at the same level of income you
currently have. Finally, you want to make sure you have enough to maintain
this through age 85.
You decide it would be good to always have $50,000 for emergencies. Second,
your current combined income is $45,000 and you'd like to maintain that if
possible. What would your starting balance need to be under this new
scenario?
- 14 -
Enter the following values as shown below:
------------------------------------------------------------------------------
Starting balance: Blank The future value of your savings.
Annual Income 23000 $45,000 less $10,000 less $12,000
Rate of Return 8.0 Still getting 8.0% at the bank.
Number of Periods 20 85 - 65 = 20
Ending Balance 50000 Maintain $50,000 for emergencies
Investment Period Annual Select the annual basis for calculations.
------------------------------------------------------------------------------
Also enter 4.0 for inflation and mark increase income with inflation (so
that you will be able to maintain the same standard of living) and mark
adjust ending balance for inflation (so the $50,000 will still be worth
$50,000 in today's dollars at age 85). Now select <Recalc>. The screen
will appear as below:
Menu Option: Projection - Annuity Projection
+-------------------Untitled Annuity Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| |*Starting Balance [ $352,572] | |
| | Annual Income (First Period) [ $23,000] | |
| | Annual Rate of Return [ 8.000%] | |
| | Number of Years [ 20] | |
| | Ending Balance (Inflation Adjusted) [ $50,000] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 4.000%] | |
| | Increase Income with Inflation [X] | |
| | Adjust Ending Balance for Inflation [X] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
The starting balance shows $352,572. Therefore, you'd need to save that
amount (in today's dollars) by age 65. Let's go back and see what you'd
need to put aside each year in order to achieve that level of savings.
To switch back to that "window", go up to the "Window" menu and select
"Switch to Window" and then select "Untitled Savings Projection". Enter
352572 in the ending balance field and make the yearly investment field
blank. Select <Recalc> and you'll see that you need to put aside $11,904.
However, you remember that as your salary goes up (hopefully), you'll be
able to put aside more. So check the "Increase Investment with Inflation"
- 15 -
box and <Recalc> again. You'll see that you need to put aside $8,323 the
first year and increase that amount by 4.0% each year in order to have
$352,572 in your account at age 65. This example is shown below:
Menu Option: Projection - Savings Projection
+-------------------Untitled Savings Projection------------------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Starting Balance [ $0] | |
| |*Annual Investment (First Period) [ $8,323] | |
| | Annual Rate of Return [ 8.000%] | |
| | Number of Years [ 25] | |
| | Ending Balance (Inflation Adjusted) [ $352,572] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Inflation Rate [ 4.000%] | |
| | Increase Investment with Inflation [X] | |
| | Adjust Ending Balance for Inflation [X] | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
If you only wanted to put aside $4,000 each year (because of IRA
limitations), what return would be necessary to generate the $352,572?
Enter 4000 in "Yearly Investment" and make the "Rate of Return" field
blank. Select <Recalc> and you'll see that you need to generate a return of
13.053% per year. Now you may want to search around for an investment
strategy that will generate that type of long term return. You can use the
"Compare" menu option to see how some mutual funds might fit into that
strategy.
This is the way you should use this tool. Change your assumptions (and
perhaps your expectations...?). Use these tools to better understand your
current and future financial situation.
Inflation Issues
----------------
Taking inflation into consideration can sometimes make your calculations
more difficult to understand. However, it is absolutely essential to adjust
for inflation when you are projecting dollars far into the future. Even
with low inflation rates of 3-4%, the cumulative effect on the value of your
savings is substantial. As an example, if you currently have $10,000 in a
savings account earning 4% interest and inflation is running at 4%, we know
- 16 -
that you're basically just maintaining the true value of your savings
(disregarding tax consequences). If you project this $10,000 twenty years
into the future at 4%, you will have $21,911. This sounds like you're
making progress, but we know it is still just running in place. The
inflation adjusted value of that savings is still $10,000. In other words,
the $21,911 twenty years from now will buy the same goods that $10,000 buys
today.
When to use the Inflation Checkboxes
------------------------------------
On the savings projection menu option, use the "adjust ending balance for
inflation" checkbox if you want the ending balance to be displayed in
today's dollars. Use the "increase investment with inflation" checkbox only
if you are making a annual investment that you plan to increase each year by
an amount similar to the inflation rate. Examples of this would be if your
investment was based on a percentage of your salary and you expected to at
least maintain cost of living increases in your salary.
On the annuity projection menu option, use the "adjust ending balance for
inflation" checkbox if you want the ending balance to be displayed in
today's dollars. Use the "increase income with inflation" checkbox if you
want to make sure the purchasing power of the income stream remains the same
over time. This of course will decrease your principal sooner, but allows
you to maintain the same standard of living (assuming expenses only increase
with inflation).
Saving Your Assumptions
-----------------------
If you'd like to save a set of assumptions so that you can reload them at a
later date, just select "File - Save" or save the changes when you close the
window. You'll then be able to type in the name of the save file. To
re-use this data at a later date, choose "File - Open" and select the file
you want to view. The data is saved on individual files which can be easily
copied or renamed.
- 17 -
----------------------
COMPARING MUTUAL FUNDS
----------------------
Mutual funds as an investment alternative offer several benefits to an
investor:
- Professional management of a stock or bond portfolio.
- Diversification of investment risk.
- Small initial investment (some as low as $25).
- Low cost as compared with buying stocks and bonds on your own.
In other words, mutual funds are designed for people who don't have the time
or expertise to invest in the stock and bond markets or who want to
diversify the risk and lower the costs typically associated with a small
stock and bond portfolio.
However, mutual funds are not all alike. Each mutual fund has a specific
investment objective which you need to consider. Some may invest in bonds,
others may invest in stocks and still others may invest in both. In
addition, some funds are better managed and therefore may outperform other
funds with similar investment objectives. It is therefore important that
you develop an investment strategy that makes sense for you.
Developing this strategy is nothing more than determining your future needs,
analyzing your current savings ability, understanding your feelings about
risk versus return, and finally, selecting appropriate investments to try to
meet your objectives. At least this is the way your investment advisor
would describe it. Though your advisor is right, "nothing more" refers to
an fair amount of work and self questioning. Again, our objective with this
software and manual is to help you make an informed investment decision.
There are four important factors which should be considered when developing
an investment strategy: your investment horizon, your attitude toward risk,
your need for diversification of assets and mutual fund performance. The
remainder of this section is devoted to using the software to track the
fourth factor, mutual fund performance.
****************************************************************************
Please note that the examples on the following pages may not correspond
with the software you are using. The examples are based on 1991 data
from the expanded database.
****************************************************************************
- 18 -
-----------------------------
Using the Comparison Software
-----------------------------
The comparison software contains over 300 mutual funds (700 in the expanded
version) of the largest 25 mutual fund families. The purpose of this
software is to allow you to quickly generate a list of funds which meet
specified criteria. For example, you can generate a list of all growth
funds which have achieved at least a 15% return over 5 years and charge no
load on your investment.
The information contained for each fund in the database is as follows: Fund
name, fund family, 800 phone number, fund objective (type), how often
dividends are paid, size (assets held in $millions), minimum initial
investment, load, expenses, cash, stock and bond holdings (by %), yield for
most recent year (dividends + interest), 1, 3, 5 and 10 year return. For
some bond funds, the average maturity is also listed.
There are a few definitions which are important to note. First an "NA"
means the data was not available. For the most part, this shows up in the 5
and 10 year returns, which means that the fund was not in existence 5 or 10
years ago. Therefore, by making the N/A box blank, funds which don't have 5
years of historical returns would be excluded. Second, for the fund
objective, we use broad groupings for easier comparisons as described below:
Growth: Growth, maximum growth, small company, growth / income
Income: Income, utilities, equity income, balanced, asset
allocation, convertible bonds
International: International stock and bond funds
Specialty: Sector funds, options, technology, health care
Gov't Bond: Treasury and government backed bonds / mortgages
Corporate Bonds: Corporate bonds and high yield corporate bonds
Municipal Bonds: US, state and local municipal bonds
Again, probably the best way to show you how to use the software is by
example. So let's run through a few examples which will take you through
the menus and illustrate the power of the software.
Example 1: Finding an appropriate fund.
----------------------------------------
You've decided to test the waters with a small investment in a balanced or
income fund. You want to invest in a fund which has a respectable
historical return (over 10%) and has a low load (under 3%). Select the
"Individual Funds" menu option under the "Compare" heading and enter the
following values as shown below. Remember, your mouse or arrow keys will
move you among inputs in the same box. Use your mouse or tab key to move
from box to box and to the "buttons" at the bottom of the screen (<Recalc>,
<Graph> and <Cancel>).
- 19 -
Spacebar will blank out a value. Spacebar or clicking the mouse will select
a radio button (*) or a "toggle" (turn off or on) a checkbox [X]. Please
refer to the appendix in the back of this manual for additional instructions
and machine specific options.
Menu Option: Compare - Individual Funds
+---------------------------Fund Selection---------------------------+
| +-Selection Criteria---------------------------------------------+ |
| | Show If | |
| | > = < Value N/A? | |
| | 1 Year Return (*) ( ) ( ) [ ] [X] | |
| | 3 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | 5 Year Avg. Return (*) ( ) ( ) [ 10.0%] [ ] | |
| | 10 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | Yield (*) ( ) ( ) [ ] [X] | |
| | Load (%) ( ) ( ) (*) [ 3.0%] [X] | |
| | Expenses (%) ( ) ( ) (*) [ ] [X] | |
| | Min. Investment ( ) ( ) (*) [ ] [X] | |
| +----------------------------------------------------------------+ |
| +-Fund Objectives-------+ +-Fund Families--------+ |
| | [ ] Growth | | AIM | <Report> |
| | [X] Income | | Alliance | |
| | [ ] International | | Amer Capital | |
| | [ ] Specialty | | American | < Sort > |
| | [ ] Government Bonds | | Dean-Witter | |
| | [ ] Corporate Bonds | | Dreyfus | |
| | [ ] Municipal Bonds | | Fidelity | <Cancel> |
| +-----------------------+ +---------------------- |
+--------------------------------------------------------------------+
Now, select <Report>. You'll then get a listing of all income funds which
have had a 5 year return over 10% and a load of 3% or less as shown on the
following page. Note that the default sort order is by 5 year return. This
can be changed by selecting <Sort>. The <Sort> option will allow you to
order the display of funds by any of the following fields: 1, 3, 5, 10 year
return (5 year return is the default), yield, load, expenses or minimum
investment.
Let's explore the other options at the bottom of screen. <Detail> will show
all the information in the database about the fund which is currently high-
lighted. For instance, if you select the Financial Industrial Income fund
(at the top of the screen), you'll get the fund detail screen (also shown on
the following page). There may be additional information in the "Note" field,
or you may type in your own comments for reference. Selecting <Save> will
permanently store these comments in the database. Selecting <Family> will
provide more information on the family of funds associated with the current
selection.
- 20 -
Menu Option: Compare - Individual Funds - Report
+--------------------------------Fund Report--------------------------------+
| Data for 1991 sorted by 5 Year Avg. Return |
| |
| Funds (9 found) Obj Yld 1yr 3yr 5yr 10yr Load Exp |
| +-------------------------------------------------------------------------+
| |*Financial Industrial Incom Inc 2.6 46.3 24.9 18.7 20.1 0.0 0.9 | |
| | Kemper Invest. Port. Total Inc 2.7 42.5 19.7 14.2 NA 3.0 2.2 | |
| | Fidelity Balanced Inc 4.7 26.8 14.7 12.3 NA 0.0 1.0 | |
| | Price Equity Income Inc 4.1 25.3 9.9 11.9 NA 0.0 1.0 | |
| | Wellington Inc 5.0 23.6 13.5 11.7 16.2 0.0 0.4 | |
| | Vanguard Star Inc 4.9 24.2 12.4 11.4 NA 0.0 0.0 | |
| | Wellesley Income Inc 7.0 21.5 15.1 11.2 15.9 0.0 0.4 | |
| | Financial Strategic Utilit Inc 3.2 28.0 14.8 10.5 NA 0.0 1.3 | |
| | Fidelity Puritan Inc 5.7 24.5 11.7 10.2 16.3 2.0 0.7 | |
| | | |
| +-----------------------------------------------------------------------+ |
| |
| <Detail> <Project> < Sort > <Cancel> |
| |
+---------------------------------------------------------------------------+
Menu Option: Compare - Individual Funds - Report - Detail
+-----------------Fund Detail: Financial Industrial Income-----------------+
| +----------------Financial Industrial Income (1991)--------------------+ |
| | Family Financial | |
| | Phone (800) 525-8085 | |
| | Fund Objective Income (Equity/Income) | |
| | Dividends Paid Quarterly | |
| | Size (Millions) $1,597 All Funds | |
| | Min. Investment $250 Return Percentile | |
| | Load 0.00% Yield 2.6% 58 | |
| | Expenses 0.94% 1 Year Return 46.3% 13 | |
| | Cash Holdings 8.0% 3 Year Avg. 24.9% 10 | |
| | Stock Holdings 74.0% 5 Year Avg. 18.7% 8 | |
| | Bond Holdings 18.0% 10 Year Avg. 20.1% 4 | |
| | | |
| | Note: | |
| | [ ] | |
| | [ ] | |
| +----------------------------------------------------------------------+ |
| |
| < Save > <Family> <Cancel> |
| |
+--------------------------------------------------------------------------+
- 21 -
The <Project> option will show a financial projection (similar to the
"Savings Projection" menu option) for the fund which is currently selected.
Again, if you select the Financial Industrial Income fund, you'll get the
following screen:
Menu Option: Compare - Individual Funds - Report - Project
+----------Fund Projection: Financial Industrial Income----------+
| +------------------------------------------------------------+ |
| | Enter four of the following fields to calculate the fifth: | |
| | | |
| | Initial Investment [ $10,000] | |
| | Annual Investment [ $0] | |
| | Annual Rate of Return [ 18.700%] | |
| | Number of Years [ 5] | |
| |*Ending Balance [ $23,564] | |
| | | |
| | Investment period: (*) Annual ( ) Monthly | |
| +------------------------------------------------------------+ |
| +------------------------------------------------------------+ |
| | Load [ 0.000%] | |
| | Expenses [ 0.940%] | |
| | Total Load and Expenses $809 | |
| +------------------------------------------------------------+ |
| |
| <Recalc> <Graph > <Cancel> |
| |
+----------------------------------------------------------------+
You can change any of the editable fields. If you select 1, 3, 5 or 10
years, the rate of return will reflect the return for the fund in the
database for that period. Other time frames can be entered, but you'll have
to supply the rate of return. The cumulative load and expense costs will be
displayed at the bottom of the screen to indicate the total estimated cost
of investing in this fund.
You can also print a report (hard copy or to a file on IBM compatibles) by
going up to the "File" menu and selecting "Print". Please see the appendix
for more details on how to use the "Printer Setup" menu choice and other
print report options. An example report is displayed on the following page
where the user selected government, corporate and municipal bond funds which
have a 5 year return over 10% and the load is not specified. Notice that
the sort order, objectives, and selection criteria are printed at the top.
- 22 -
Menu Option: Compare - Individual Funds - Report - [new menu] - File - Print
-----------------------------------------------------------------------------
Fund Report Oct 16, 1992 1:44PM
Year of data: 1991
Sort by: 5 Year Avg. Return
Objectives:
GBd (Gov't Bonds)
CBd (Corporate Bonds)
MBd (Municipal Bonds)
Criteria:
5 Year Avg. Return > 10.0%
Families:
(All)
Fund Obj Yld 1Yr 3Yr 5Yr 10Yr Load Exp
-------------------------- --- ----- ----- ----- ----- ----- ---- ----
Merrill Lynch High Income CBd 12.7 40.1 11.7 10.5 13.6 4.0 0.7
Vanguard GNMA GBd 8.0 16.8 13.9 10.4 13.8 0.0 0.3
Dreyfus Strategic Income CBd 8.3 19.1 12.7 10.3 NA 4.5 0.9
Vanguard Investment Grade CBd 8.0 20.9 13.9 10.2 13.5 0.0 0.3
-----------------------------------------------------------------------------
- 23 -
Example 2: Finding an Appropriate Fund Family.
-----------------------------------------------
You've decided you'll probably invest in an income fund, but you're also
considering international and sector funds as a possible additional invest-
ment down the road. You'd like to find a family of funds which has all three
types and allows an initial investment of $1000 or less and a load of under
5%. To find a listing of the fund families which meet these criteria, select
the "Fund Families" menu option under the "Compare" heading and enter the
following values as shown below.
Menu Option: Compare - Fund Families
+--------------------------Family Selection--------------------------+
| +-Selection Criteria---------------------------------------------+ |
| | Show If | |
| | > = < Value N/A? | |
| | 1 Year Return (*) ( ) ( ) [ ] [X] | |
| | 3 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | 5 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | 10 Year Avg. Return (*) ( ) ( ) [ ] [X] | |
| | Yield (*) ( ) ( ) [ ] [X] | |
| | Load (%) ( ) ( ) (*) [ 5.0%] [X] | |
| | Expenses (%) ( ) ( ) (*) [ ] [X] | |
| | Min. Investment ( ) ( ) (*) [ $1,000] [X] | |
| +----------------------------------------------------------------+ |
| +-Fund Objectives------------------------------+ |
| | | <Report> |
| | [ ] Growth [ ] Government Bonds | |
| | [X] Income [ ] Corporate Bonds | < Sort > |
| | [X] International [ ] Municipal Bonds | |
| | [X] Specialty | <Cancel> |
| +----------------------------------------------+ |
+--------------------------------------------------------------------+
If you then select report, you'll find that 4 fund families meet these
criteria and are displayed as shown on the following page. You can then view
the detail of each family (and ultimately, of each fund), by selecting the
fund family (when a fund is selected, a mark will appear at the left of the
fund name) and choosing <Report>. This display is the same as the one found
under the "Individual Funds" menu choice, but only contains the funds of a
particular group and which meet your objectives (in the above example,
income, international and specialty). See the section on choosing
individual funds for more detail on your options at this point.
- 24 -
Menu Option: Compare - Fund Families - Report
-----------------------------------------------------------------------------
+-------------------------------Family Report-------------------------------+
| Year: 1991 |
| |
| Families (4 found) Yld 1yr 3yr 5yr 10yr Load Exp |
| +-----------------------------------------------------------------------+ |
| |*Financial 1.6 36.3 18.2 14.3 20.1 0.0 1.4 | |
| | Kemper 2.8 32.0 17.1 12.6 14.9 4.9 1.3 | |
| | Dean-Witter 3.5 19.4 11.9 8.4 7.0 5.0 1.9 | |
| | Prudential 2.1 19.0 11.0 8.3 NA 5.0 2.3 | |
| | | |
| | | |
| +-------------------------------------------------------------------------+
| |
| <Family> <Report> < Sort > <Cancel> |
| |
+---------------------------------------------------------------------------+
You may also choose to print a report which will show the detail of each fund
family which meets your criteria. This is done by selecting the "Print"
choice under the "File" menu. An example of this printout is shown on the
next page.
As mentioned earlier, this software should only be a beginning in your search
for investment opportunities. Be sure to order a fund prospectus and read it
carefully. If you like the historical record of a particular fund, make sure
the investment advisor is still the same group or individual that posted those
attractive returns. A change in the management of the fund often can lead to
a change in the performance of the fund (positive or negative). Take your
time, read the prospectus, track the fund for a little while - make an
informed investment decision.
- 25 -
Family Report Oct 16, 1992 1:45PM
Year of data: 1991
Sort by: 1 Year Return
Objectives:
Inc (Income)
Int (International)
Spc (Specialty)
Criteria:
Load < 5.0% or N/A
Min. Investment < $1,000 or N/A
Fund Obj Yld 1Yr 3Yr 5Yr 10Yr Load Exp
-------------------------- --- ----- ----- ----- ----- ----- ---- ----
Financial Strategic Health Spc 0.2 91.8 56.7 36.7 NA 0.0 1.1
Financial Strategic Techno Spc 0.0 76.9 32.6 20.3 NA 0.0 1.3
Financial Strategic Fin. S Spc 0.8 74.0 30.3 18.2 NA 0.0 2.5
Financial Industrial Incom Inc 2.6 46.3 24.9 18.7 20.1 0.0 0.9
Financial Strategic Utilit Inc 3.2 28.0 14.8 10.5 NA 0.0 1.3
Financial Flex Inc 4.2 24.9 14.0 NA NA 0.0 1.0
Financial Strategic Pacifi Int 0.8 13.2 0.9 6.8 NA 0.0 1.8
Financial Strategic Europe Int 3.2 8.0 10.6 7.4 NA 0.0 1.3
Financial Intl. Growth Int 1.2 7.2 2.1 NA NA 0.0 1.5
Financial Strategic Gold Spc 0.0 -7.0 -4.7 -4.3 NA 0.0 1.3
----- ----- ----- ----- ----- ---- ----
Financial 1.6 36.3 18.2 14.3 20.1 0.0 1.4
Kemper Technology Spc 0.7 44.4 21.9 14.8 14.8 5.8 0.7
Kemper Retirement I Inc 3.3 43.4 NA NA NA 5.0 1.2
Kemper Invest. Port. Total Inc 2.7 42.5 19.7 14.2 NA 3.0 2.2
Kemper Retirement II Inc 1.9 41.9 NA NA NA 5.0 1.2
Kemper Total Return Inc 3.2 40.2 20.5 13.2 15.1 5.8 0.9
Kemper Environmental Servi Spc 0.0 24.2 NA NA NA 5.8 1.5
Kemper International Int 0.0 9.1 6.2 8.4 14.9 5.8 1.3
----- ----- ----- ----- ----- ---- ----
Kemper 2.8 32.0 17.1 12.6 14.9 4.9 1.3
Dean-Witter Strategist Inc 1.7 32.2 18.5 NA NA 5.0 1.6
Dean-Witter Convertible Se Inc 6.2 27.3 8.3 4.4 NA 5.0 1.9
Dean-Witter Managed Assets Inc 3.1 26.4 11.1 NA NA 5.0 1.7
Dean-Witter Equity Income Inc 2.1 24.3 15.1 10.3 NA 5.0 2.1
Dean-Witter World Wide Inv Int 0.3 19.2 7.7 8.5 NA 5.0 2.3
Dean-Witter Utilities Inc 5.1 18.6 13.8 NA NA 5.0 1.6
Dean-Witter Natural Resour Spc 1.9 6.4 8.5 10.4 7.0 5.0 1.9
Dean-Witter World Wide Inc Int 7.9 1.1 NA NA NA 5.0 1.8
----- ----- ----- ----- ----- ---- ----
Dean-Witter 3.5 19.4 11.9 8.4 7.0 5.0 1.9
Prudential Equity Income Inc 2.3 25.6 12.5 NA NA 5.0 2.2
Prudential Flexifund Strat Inc 2.8 25.5 14.8 NA NA 5.0 2.1
Prudential Flexifund Conse Inc 3.2 21.4 13.0 NA NA 5.0 2.1
Prudential Utility B Inc 3.9 19.0 15.1 11.4 NA 5.0 1.7
Prudential Global B Int 0.0 12.3 1.6 4.4 NA 5.0 2.6
Prudential Total Return B Spc 0.5 10.3 9.3 9.1 NA 5.0 2.9
----- ----- ----- ----- ----- ---- ----
Prudential 2.1 19.0 11.0 8.3 NA 5.0 2.3
- 26 -
----------------------
MS-DOS Reference Guide
----------------------
Menus:
Select a menu item using the arrow keys to highlight an option and [Enter]
to select an option. You may also use Alt-[highlighted (blue) letter] to
select a menu item from a form or window. For instance, Alt-Q will quit the
program. You may also use [F10] to activate the menus from within a form.
File Projection Compare Windows
Open
Close
Save
Printer Setup...
Print
Quit
Savings Projection
Annuity Projection
Fund Projection
Individual Funds
Fund Families
Switch to Window
Help
Register
About
Function Keys:
[F1] Opens a help window
[F3] Print a report (shortcut for selecting print from the file menu)
[F6] Move to the next window (for scrolling through windows)
[F10] Access the menu
Alt-[F3] Print current window (similar to print screen)
- 27 -
Moving Around in a Form / Window:
Enter key Accept the current input value and stay in the same place
Accept the highlighted control button (e.g. <Report>).
Arrow keys Accept the current input value and move in direction of key.
Move among fields in the same box.
Tab / Shift-Tab Move to the next box or control button.
Ctrl-1st letter Shortcut for selecting control buttons (e.g. Ctrl-C =
Cancel)
Control Buttons
A control button on an input form allows you to choose an action to perform.
To select a control button, press the enter key when the cursor is
positioned on the appropriate button. You may also use the Ctrl key in
combination with the highlighted letter (e.g. Ctrl-C = Cancel).
Sample control buttons: <Report> <Sort> <Cancel>
List Boxes:
A list box contains a list of choices. Use the arrow keys and the [PgUp] /
[PgDn] keys to move within the list box. Use the spacebar or [Enter] key to
select an item.
Check Boxes and Radio Buttons:
Check boxes and radio buttons allow you to select an option (usually yes or
no, true or false). Use the spacebar or [Enter] key to toggle (reverse) a
checkbox or select a radio button.
Sample check box [ ] Select this item by pressing spacebar
Sample radio buttons ( ) Select this, ( ) that or ( ) the other
Printer Options:
Use the "Printer Setup" menu option to select an appropriate printer for
your output. You may also output to a text (ASCII) file by selecting the
Default (generic) printer, the file radio button and typing in the name of a
file such as OUTPUT.TXT. To send the output to the printer, select the
printer radio button rather than the file button.