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Overview of the "8-YOUR STOCKS" worksheet

Subject: Overview of the "8-YOUR STOCKS" worksheet
by The Skilled Investor on May/14/2007 19:34:07

Overview of the "8-YOUR STOCKS" worksheet

Use this '8-Your Stocks' worksheet to enter information about your market tradable stocks and equity assets into VeriPlan. These assets would include common stocks, preferred stocks, equity mutual funds, exchange traded equity funds, etc., including hybrid funds with an equity emphasis.

VeriPlan collects information on up to 99 different equities or equities funds that you may currently hold. You can change and update any of this asset information at any time and run new projections.

Suppose that you have an account with a total valuation of $50,000, which is a mixture of $10,000 in cash assets, $25,000 in bonds or fixed income assets, and $15,000 in stocks or equity assets. You should enter ONLY the $15,000 in equities on this '8-Your Stocks' worksheet. The $10,000 in cash assets would be entered on the yellow-tabbed '6-Your Cash' worksheet. The $25,000 in fixed income assets would be entered on the yellow-tabbed '7-Your Bonds' worksheet.

Do not enter your non-market traded and relatively illiquid equity positions on this worksheet. These non-market traded equities should instead be entered on the yellow-tabbed '10-Your Other Assets' worksheet. These other equity assets might include: shares or options to purchase shares of private companies, shares in limited partnerships or hedge funds, and other equity assets that have uncertain current value or are subject to restrictions on sale. VeriPlan will project values for these other assets separately and will not include them in the deposit-withdrawal-tax-rebalancing logic that it applies to market traded cash, fixed income, and equity assets. Your other assets are treated separately, because they may be subject to substantial tax and liquidation constraints and may have a much less certain current valuation.

VeriPlan collects specific information on each of your stock and equity asset positions about size, value, taxability, investment costs, and expected distributions. Because it will project each of your holdings separately and will calculate returns, volatility, taxes and costs accordingly, the more accurate your inputs, the more informative the results can be to you.

Internally, VeriPlan will maintain this information separately for each individual holding throughout your lifecycle projections. This detailed accounting approach allows your overall portfolio tax-efficiency and investment-efficiency to be calculated for each year of any projection -- even though the net valuation of your individual holdings may change at different rates because of differences in investment returns, costs, and taxes. By avoiding the use of averages, VeriPlan provides much more insight into your particular circumstances.




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Demonstrating a comprehensive projection for a professional couple with children, the VeriPlan tutorial can help you to understand what VeriPlan can do. Use this link to download a free copy of the VeriPlan tutorial file:

Download the Free VeriPlan Tutorial Now