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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.
-
-