Hi John,
If a goal is met, you can shift your attention to your other goals. As we go through the PRISM process, you will see that we suggest considering having a different allocation for goal. Tactical decisions about what you buy specifically are driven by the allocation decisions. I'll explain this in more detail as we publish more lessons.
-Charles
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Charles Rotblut, CFA
Vice President and AAII Journal Editor
American Association of Individual Investors
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Original Message:
Sent: 10-16-2021 12:48
From: John Darby
Subject: Please explain the point system
I am trying to understand. About the posts and this point system. I have giosls. I have allocated funds toward those goals. I have given information about my portfolio and how I am using them. So
my question is when you have a goal and something changes your perspective and you choose different goals and act on those d, does that make the goals you had wrong or less important. For instance my short term goal is to have an emergency fund. Because of COVID some of that emergency fund was spent to make sure we had extra fiood and supplies on hand to weather the storms. Also the interest bearing in cash is so low that it does not seem good to keep a lot of cash.. so if you invest in Bonds, or other sector of d dvconomy like Consumer Staple, does that affect how you are following your plan? I guess this also affects asset allocation to some degree. Suppose you used dividends to help towards your goa. By reinvesting you can fund you r goal. So the ETFs from Vanguard I mentioned are dividends reinvested. It seems as though we may be talking about action plans and actual steps taken to fulfill the goal. It just seem as though the points aren't reflecting the real status.
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John Darby
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