Investing Fundamentals - Module 1

Module 1 of Investing Fundamentals builds the foundational understanding of how a trust is invested. The module focuses on common practices for investing in a trust, the more common asset classes that a trust may typically hold, and the investment considerations for those common asset classes. This module explores the concepts of compounding, portfolio construction, time horizons, and risk and return.  It concludes with an overview of annual asset class performance and the factors that can influence performance.

Learning Objectives:

• Understand the different asset types, including equities, fixed income, bonds, mutual funds, and alternatives, along with the power of compounding interest
• Explain the four components of bonds and the Rule of 72
• Demonstrate the significance of time horizons in investment, short vs. long term, and its impact on portfolio construction and asset allocation
• Identify the relationship between investment risk and return and how it applies to trust assets

Featured Resources: 

     Articles/Books

• StackTrack.com Personal Trading Simulator
• "Senior and Subordinated Debt" by the Corporate Finance Institute
• Bond Yield to Maturity Calculator
• Interactive Compounding Interest Worksheet
• Compound Interest Calculator 
• Wealth Wisdom Chapter 13, "How Can You Make Sure Your Portfolio Lines Up With Your Actual Costs" by Tom McCullough & Keith Whitaker

     Videos

• Podcast with David McCombie entitled, Private Equity Perils and Pearls
• Podcast with Jenna Arnold entitled, Impact Investing
• Scott Peppet's Financial Capital Series, "Compound Interest"
• Tharawat Magazine, "The Future of Family Offices"
• The Quilt Map