PRISM: Prioritizing Your Goals

Narrowing Down the Fund Universe

Reflect 

With over 30,000 mutual funds and ETFs it can feel overwhelming to know where to start. 

In this lesson, you will learn how using the PRISM Wealth-Building Process makes it easier to narrow down the number of potential fund candidates to a manageable list. 

You will use what you learned from sections "R" and "I" - allocation and preferences – to create this master list. 

As we continue to highlight, the PRISM Wealth-Building Process is a cyclical process that illustrates the building blocks of this online course. Each section of the course is dependent on the other, meaning one step must be complete before moving onto the next, and a change at the top or bottom can lead to a comprehensive review. Therefore, you can use the PRISM process time and time again to help you stay focused on funding your financial goals.   

So, let's get started! 

Participate 

Before we get into the specific selection guidelines and buy/sell rules, you'll need to answer a few questions about how to create a potential candidate list, these include: 

• What asset class and asset class category are you trying to find a fund for? 
• What are your preferences for actively managed funds or index-funds? 
• What constraints do you face in selecting specific funds (e.g. limits on choices because of a 401(k) or 529 plan)? 
• Do you have preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

Once you are clear about the answers to these questions, it will be easier to find a fund that fits your individual investor needs. 

Now, review the "S" worksheet, AAII Allocation Models and Asset Class Heat Map as well as answer the questions above in the discussion below. 

Discussion Example 

• What asset class and asset class category are you trying to find a fund for? 

• • In the last lesson, I identified that I should find a few international, emerging market and intermediate bonds to add to my portfolio so I may look at certain bond funds or global funds to add to my portfolio. 

• What are your preferences for actively managed funds or index-funds? 

• • I have chosen passively managed index funds because they tend to align well with people who are investing for the long-term and have goals far out into the future, like I do. However, this is just my personal preference that is specific to my own current goals. 

• What constraints do you face in selecting specific funds (e.g., limits on choices because of a 401(k) or 529 plan)? 

• • I do not have any current account constraints that would impact my choice to learn towards certain types of funds. 

• Do you have a preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

• • Because I shared that I wanted to find passively managed funds, I may add ETFs to my list rather than mutual funds. 

Resources
Download the "Selecting and Managing Your Investments" worksheet 

View the Asset Class Heat Map 

View the AAII Allocation Models

Questions about coursework, webinars, worksheets, etc.? Drop your inquiries in the discussion below. We're happy to help! 

Narrowing Down the Fund Universe

Reflect 

With over 30,000 mutual funds and ETFs it can feel overwhelming to know where to start. 

In this lesson, you will learn how using the PRISM Wealth-Building Process makes it easier to narrow down the number of potential fund candidates to a manageable list. 

You will use what you learned from sections "R" and "I" - allocation and preferences – to create this master list. 

As we continue to highlight, the PRISM Wealth-Building Process is a cyclical process that illustrates the building blocks of this online course. Each section of the course is dependent on the other, meaning one step must be complete before moving onto the next, and a change at the top or bottom can lead to a comprehensive review. Therefore, you can use the PRISM process time and time again to help you stay focused on funding your financial goals.   

So, let's get started! 

Participate 

Before we get into the specific selection guidelines and buy/sell rules, you'll need to answer a few questions about how to create a potential candidate list, these include: 

• What asset class and asset class category are you trying to find a fund for? 
• What are your preferences for actively managed funds or index-funds? 
• What constraints do you face in selecting specific funds (e.g. limits on choices because of a 401(k) or 529 plan)? 
• Do you have preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

Once you are clear about the answers to these questions, it will be easier to find a fund that fits your individual investor needs. 

Now, review the "S" worksheet, AAII Allocation Models and Asset Class Heat Map as well as answer the questions above in the discussion below. 

Discussion Example 

• What asset class and asset class category are you trying to find a fund for? 

• • In the last lesson, I identified that I should find a few international, emerging market and intermediate bonds to add to my portfolio so I may look at certain bond funds or global funds to add to my portfolio. 

• What are your preferences for actively managed funds or index-funds? 

• • I have chosen passively managed index funds because they tend to align well with people who are investing for the long-term and have goals far out into the future, like I do. However, this is just my personal preference that is specific to my own current goals. 

• What constraints do you face in selecting specific funds (e.g., limits on choices because of a 401(k) or 529 plan)? 

• • I do not have any current account constraints that would impact my choice to learn towards certain types of funds. 

• Do you have a preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

• • Because I shared that I wanted to find passively managed funds, I may add ETFs to my list rather than mutual funds. 

Resources
Download the "Selecting and Managing Your Investments" worksheet 

View the Asset Class Heat Map 

View the AAII Allocation Models

Questions about coursework, webinars, worksheets, etc.? Drop your inquiries in the discussion below. We're happy to help! 

Narrowing Down the Fund Universe

Reflect 

With over 30,000 mutual funds and ETFs it can feel overwhelming to know where to start. 

In this lesson, you will learn how using the PRISM Wealth-Building Process makes it easier to narrow down the number of potential fund candidates to a manageable list. 

You will use what you learned from sections "R" and "I" - allocation and preferences – to create this master list. 

As we continue to highlight, the PRISM Wealth-Building Process is a cyclical process that illustrates the building blocks of this online course. Each section of the course is dependent on the other, meaning one step must be complete before moving onto the next, and a change at the top or bottom can lead to a comprehensive review. Therefore, you can use the PRISM process time and time again to help you stay focused on funding your financial goals.   

So, let's get started! 

Participate 

Before we get into the specific selection guidelines and buy/sell rules, you'll need to answer a few questions about how to create a potential candidate list, these include: 

• What asset class and asset class category are you trying to find a fund for? 
• What are your preferences for actively managed funds or index-funds? 
• What constraints do you face in selecting specific funds (e.g. limits on choices because of a 401(k) or 529 plan)? 
• Do you have preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

Once you are clear about the answers to these questions, it will be easier to find a fund that fits your individual investor needs. 

Now, review the "S" worksheet, AAII Allocation Models and Asset Class Heat Map as well as answer the questions above in the discussion below. 

Discussion Example 

• What asset class and asset class category are you trying to find a fund for? 

• • In the last lesson, I identified that I should find a few international, emerging market and intermediate bonds to add to my portfolio so I may look at certain bond funds or global funds to add to my portfolio. 

• What are your preferences for actively managed funds or index-funds? 

• • I have chosen passively managed index funds because they tend to align well with people who are investing for the long-term and have goals far out into the future, like I do. However, this is just my personal preference that is specific to my own current goals. 

• What constraints do you face in selecting specific funds (e.g., limits on choices because of a 401(k) or 529 plan)? 

• • I do not have any current account constraints that would impact my choice to learn towards certain types of funds. 

• Do you have a preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

• • Because I shared that I wanted to find passively managed funds, I may add ETFs to my list rather than mutual funds. 

Resources
Download the "Selecting and Managing Your Investments" worksheet 

View the Asset Class Heat Map 

View the AAII Allocation Models

Questions about coursework, webinars, worksheets, etc.? Drop your inquiries in the discussion below. We're happy to help! 

Narrowing Down the Fund Universe

Reflect 

With over 30,000 mutual funds and ETFs it can feel overwhelming to know where to start. 

In this lesson, you will learn how using the PRISM Wealth-Building Process makes it easier to narrow down the number of potential fund candidates to a manageable list. 

You will use what you learned from sections "R" and "I" - allocation and preferences – to create this master list. 

As we continue to highlight, the PRISM Wealth-Building Process is a cyclical process that illustrates the building blocks of this online course. Each section of the course is dependent on the other, meaning one step must be complete before moving onto the next, and a change at the top or bottom can lead to a comprehensive review. Therefore, you can use the PRISM process time and time again to help you stay focused on funding your financial goals.   

So, let's get started! 

Participate 

Before we get into the specific selection guidelines and buy/sell rules, you'll need to answer a few questions about how to create a potential candidate list, these include: 

• What asset class and asset class category are you trying to find a fund for? 
• What are your preferences for actively managed funds or index-funds? 
• What constraints do you face in selecting specific funds (e.g. limits on choices because of a 401(k) or 529 plan)? 
• Do you have preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

Once you are clear about the answers to these questions, it will be easier to find a fund that fits your individual investor needs. 

Now, review the "S" worksheet, AAII Allocation Models and Asset Class Heat Map as well as answer the questions above in the discussion below. 

Discussion Example 

• What asset class and asset class category are you trying to find a fund for? 

• • In the last lesson, I identified that I should find a few international, emerging market and intermediate bonds to add to my portfolio so I may look at certain bond funds or global funds to add to my portfolio. 

• What are your preferences for actively managed funds or index-funds? 

• • I have chosen passively managed index funds because they tend to align well with people who are investing for the long-term and have goals far out into the future, like I do. However, this is just my personal preference that is specific to my own current goals. 

• What constraints do you face in selecting specific funds (e.g., limits on choices because of a 401(k) or 529 plan)? 

• • I do not have any current account constraints that would impact my choice to learn towards certain types of funds. 

• Do you have a preference for ETFs (can be bought and sold like stocks on an intraday basis; mostly index-based) or mutual funds (easier to buy in fractional share amounts; more choices among active managers; bought and sold at end of the day only)? 

• • Because I shared that I wanted to find passively managed funds, I may add ETFs to my list rather than mutual funds. 

Resources
Download the "Selecting and Managing Your Investments" worksheet 

View the Asset Class Heat Map 

View the AAII Allocation Models

Questions about coursework, webinars, worksheets, etc.? Drop your inquiries in the discussion below. We're happy to help!