BM 418 Day 15 Notes and Objectives
Sudweeks
Fall 2009 October 20, 2009
Winter 2010 February 25, 2010
I. Introduction
A. Welcome to class
B. It is great to be here
II. Day 15 Objectives
Investments 2: Your Investment Plan
A. Understand the Importance of Financial Goals and How to Set Them
B. Understand the Importance of your Investment Plan and How to Prepare It
C. consider index funds as useful financial assts
C. Beware of “Get Rich Quick” Schemes
Investments 3: Securities Markets Basics
A. Understand the different types of securities markets
B. Understand the basics of brokers and investment advisors
C. Understand how to buy and sell securities
D. Understand how to choose a broker or investment advisor
III. Non-teaching activities
A. Review Teaching Tool 5A and 5B – Investment Plan Instructions
IV. Active Learning Strategies
A. Investment Plan Assignments: (2-slides 3-5)
B. Put 27 Feb 2008 memo from First Presidency on overhead and read it.
1. How do you build a “sleep-well” portfolio? How to eliminate “fear/greed”?
What should it entail?
C. Divide class into same groups as before (2-3 minutes)
1. Ask: We discussed Principles first. Now what things should your
investment plan include, i.e. what should you be concerned about to
minimize the chance for scams/mistakes and allow you to sleep well?
(write it on the board)
a) WorldCom: employees put 90% WorldCom stock in 401k plans–not wise
2. Each group come up with 2 things that investment plan should include,
then discuss one at a time: Acceptable, benchmarks, asset allocation,
investment strategy, funding, new investment
D. Overheads: TT05A Your Investment Plan
1. Go through it and talk about the sections: Have them bring it up on
their computers
E. Commercial: SNL Broker straight talk (open with Windows Viewer)
1. Ask: What are brokers needed for?
2. Show: Salesmen versus trusted advisor PPT (3-slide 50)
F. Discuss: Buying securities and types of orders
1. Show: Buying and Selling Stocks (3-slide 21)
2. Show: Buying and Selling Load Mutual Funds (3-slide 22)
3. Show: Buying and Selling no-Load Mutual Funds (3-slide 23)
G. Case Studies
1. Case Study #1 – Selling short
2. Case Study #3 – Buying on margin
V. Summary and Final Thoughts:
A. Share summary and final thought
VI. Notes:
Winter 2010
We went over the assignments, then showed the Memo from the First Presidency. I asked how
we build a “sleep-well portfolio”. I emphasized that we needed to eliminate fear and greed, and
that now was the best time to do it. I told of World com employees and 401k plan, then I divided
into groups. What should the Investment Plan entail to save us from ourselves and other? I
wanted applications, not theories. I told about had each group tell us what the plan should
include. I got comments from each group, then expounded on each comment. Then we went
through the new Investment Plan on the overheads, and talked through that. I did the SNL
commercial, which the students liked. Then I went into the “How to Buy/Sell PowerPoints, and
ended with the case studies. Reviews: 6,7,7,7,7,7,7,8,8,8,8. Thoughts: Leave more time for
case studies, have definitions of asset classes, add more case studies.
Fall 2009
We went over the assignments, then showed the Memo from the First Presidency. I asked how
we build a “sleep-well portfolio”. I emphasized that we needed to eliminate fear and greed, and
that now was the best time to do it. I told of World com employees and 401k plan, then I divided
into groups. What should the Investment Plan entail to save us from ourselves and other? I
wanted applications, not theories. I told about had each group tell us what the plan should
include. I got comments from each group, then expounded on each comment. Then we went
through the new Investment Plan on the overheads, and talked through that. I did the SNL
commercial, which the students liked. Then I went into the case studies. Reviews: 7,8.
Winter 2009
We went over the assignments, then showed the Memo from the First Presidency. I asked how
we build a “sleep-well portfolio”. I emphasized that we needed to eliminate fear and greed, and
that now was the best time to do it. I told of World com employees and 401k plan, then I divided
into groups. What should the Investment Plan entail to save us from ourselves and other? I told
about had each group tell us what the plan should include. I got comments from each group,
then expounded on each comment. Then we went through the new Investment Plan on the
overheads, and talked through that. I did the SNL commercial, which the students liked. Then I
went into the case studies. It seemed to go well. Reviews: 6,7,8,8,8.
Fall 2008
We went over the quiz, then talked about sleep-well portfolios. I emphasized that we needed to
eliminate fear and greed, and that now was the best time to do it. I told of world com employees
and 401k plan, then I divided into groups. What should the investment plan entail? I told about
had each group tell us what the plan should include. I got comments from each group, then
expounded on each comment. Then we went through the new Investment Plan on the overheads,
and talked through that. I did the SNL commercial, which the students liked. Then I went into
the case studies. It seemed to go well. Reviews: 8.
Spring 2008
We went over the quiz, then talked about sleep-well portfolios. I emphasized that we needed to
eliminate fear and greed, and that now was the best time to do it. I told of world com employees
and 401k plan, then I divided into groups. What should the investment plan entail? I told about
had each group tell us what the plan should include. I got comments from each group, then
expounded on each comment. Then we went through the new Investment Plan on the overheads,
and talked through that. I did the SNL commercial, which the students liked. Then I went into
the case studies. It seemed to go well. Reviews: 7,7,8,8.
Winter 2008
We went over the quiz, then read the letter from the first presidency. I talked about scams and
avoiding problems, then discussed investing versus gambling. I divided into groups. I told about
had each group tell us what the plan should include. I got comments from each group, then
expounded on each comment. Then we went through the new Investment Plan on the overheads,
and talked through that. I did the SNL commercial, which the students liked. Then I went into
the case studies. It seemed to go well. Reviews: 8.
Fall 2007
No quiz today. I talked about investing then divided into groups. I told about had each group tell
us what the plan should include. I got comments from each group, then expounded on each
comment. Then we went through the new Investment Plan on the overheads, and talked through
that. I did the SNL commercial, which the students liked. Then I added the section on questions
for a financial advisor, then the trust advisor versus the salesman, and ended with Get Rich
Quick schemes. I should also add a section for buying bonds. It seemed to go well. Reviews:
7.
Spring 2007
I talked about the quiz, with geometric and arithmetic returns. I then divided into groups. I told
about had each group tell us what the plan should include. I got comments from each group,
then expounded on each comment. Then we went through the Investment Plan on the overheads,
and talked through that. I did the SNL commercial, which the students liked. Then the slides of
buying stocks, versus load funds, versus no-load funds. I added the section on questions for a
financial advisor, then the trust advisor versus the salesman, and should have ended with Get
Rich Quick schemes (but didn’t). I should also add a section for buying bonds. It seemed to go
well. Reviews: 6,8.
Winter 2007
I talked about the quiz, with geometric and arithmetic returns. I then divided into groups. I told
about had each group tell us what the plan should include. I got comments from each group,
then expounded on each comment. Then we went through the Investment Plan on the overheads,
and talked through that. I did the SNL commercial, which the students liked. Then the slides of
buying stocks, versus load funds, versus no-load funds. I added the section on questions for a
financial advisor, then the trust advisor versus the salesman, and should have ended with Get
Rich Quick schemes (but didn’t). I should also add a section for buying bonds. It seemed to go
well. Reviews: 6,8,7,7,7.
Fall 2006
I did the quiz, then divided into groups. I had everyone tell horror stories, then we had each
group tell us what the plan should include. I probably should just tell more stories and then we
can put the plan together. Then we went through the plan on the overheads, and talked through
that. I did the SNL commercial, which the students liked. Then the slides of buying stocks,
versus load funds, versus no-load funds. I probably should add a section for buying bonds. It
seemed to go well. Reviews: 7 but dry.
Spring 2006
I started with talking about what their investment plan should be like, then got out the overheads,
and went through the Investment Plan. That seemed to work well. I then put up the clipping on
12DailyPro scam, and the principles they violated. I wanted to show Saturday Night Live, but
the sound didn’t work, so I talked about brokers, and showed how to open an account and move
money. I ended with types of orders. .
Winter 2006
I started with talking about what their investment plan should be like, then got out the overheads,
and went through the Investment Plan. That seemed to work well. I forgot red pens, but that
was OK. It went well. I then put up the clipping on 12DailyPro scam, and the principles they
violated. Then I showed Saturday Night Live, and talked about brokers, and the trusted financial
broker. I ended with types of orders. While disjointed, it worked OK.
Fall 2005
II started with the quiz, then asked what a personal financial plan should be like. We went
through ideas on the board, and wrote down key points. Then I went through TT5 and showed
them the pieces. I think it worked out OK. Then I did the SNL Broker talk, and asked what
these people did wrong—didn’t compare. Then I showed the trusted advisor versus the
salesman, I forgot to do the types of orders. Review: 8,7,7
Spring 2005
I started with story of GPS and 50-20 hike, then went into goals and the Investment Plan. I went
through the teaching tool, used someone as an example of determining their asset allocation (and
referred to their risk tolerance test). I then played the SNL Brokers talk, and did the trusted
financial advisor versus the salesman. Then I let the class go, and answered questions for
everyone that stayed. It seemed to work out well. Reviews: 7,8
Winter 2005
I started with financial goals, then brought out the GPS. Talked about how the GPS helped us,
and related it to investing. I then told about a student, and shared each of her 3 goals, car, down
payment, and retirement, and how we could help her to achieve those goals. Read the WSJ
articles of IPS, and asked about the road map and what it should be. Then I went through TT04
and each part. Then I showed the SNL Brokers talk, which is really funny. I talked about how
this broker lied to me, and how I never did any business again with him. Then I talked about
buying securities, and how that worked, and types of orders, telling about Samsung electronics
and Thai Farmers Bank. Then I finished with the trusted advisor versus salesman. Reviews:
7,8: 6,4,7 I may need to let those out early who feel comfortable with the material.
Fall 2004
I started with a discussion of goals, and how the only difference is that financial goals are
personal goals with a cost attached. Then I brought out a GPS. I talked about how nice it was to
have one, and asked if anyone else had one. We talked about an internal GPS, the spirit, and
then we talked about our GPS for investing—the Investment Plan. Then we went through each
of the major sections talking about what was included and why. Then I showed the IPS on the
board. Then I played the Saturday Night Live Brokers Talk, which was funny. Then we talked
about brokers, and what they needed brokers for. It was different as I didn’t use the
PowerPoints, but did it all on the board. Reviews: 5,7,8
Spring 2004
I started with the financial goals section, then talked about what the “road map” should do. We
put what it should do, mistakes it should help us not make, and then we went over it on the board
by section, discussing why it was so important. Then I brought up the investment plan on the
net, and talked about it. We then went into the “Get Rich Quick” schemes, and went through
that section. I finished on working with brokers. Reviews: positive but not graded
Winter 2004 Section 1
We had the group presentation, then talked on the importance of financial goals. Then I went
into the Investment plan overview. Finally, I went into the investment plan Word document and
we talked about it one section at a time. I tried to have stories to explain each of the sections.
After that, we went into the get-rick-quick schemes, and why they should avoid them. We then
went into the difference between a broker/financial advisor and a trusted financial advisor, with
the hope they can find trusted people. Reviews: 6,6
Winter 2004 Section 2
I did the same, although I added a section on where you can buy specific financial assets, i.e.
which require brokers and which do not. Then I did the same. I had more time, so I winged the
section on what kind of an investor are you, and what do you need. Oh well—I need to refine
that section. Reviews: 7,7,8
October 28, 2003
The group presentation started with discussions about brokers. I continued that discussing
brokers and brokerage commissions. Then I went into the financial goals, and the investment
plan. I finished with index funds, and that’s all I got to talk about. There is so much more
information. Reviews: 6,-,- I need to reduce the number of slides a bit.
May 28, 2003
Today I started with the investment plan, and talked about what it should include. Then I went
through the Investment Plan, and brought up my example on the teaching tools. Then we talked
of get rich quick schemes, and what to avoid. It seemed to go a lot better than previously.
Reviews: 6,7,8
Winter 2003
I added a few sections, but it is still rough.. I went through the PowerPoint’s generally as it. I
need to add more statistical sections which could be updated each semester. I think it would be
helpful. It seemed to go OK. Reviews: 4,4,7,8
Fall 2002
I had two groups do their presentations today. They seemed to take more time than they needed.
I went into the things to consider portion. It was kind of fun. We talked about the various
sections. I didn’t get time to finish the section on Myths. Reviews: 4,5,5,6
Spring 2002
We talked about the investment policy statement from yesterday with Kendall’s presentation,
and what it hoped to accomplish. There were good stories from the students. Then we went over
today’s presentation. We got to index funds. It was kind of fun to work on the subject.
Reviews: 5,7
Winter 2002
The group went long today, which I should have stopped. Started with Financial Horror stories,
and then tried to set up a framework of what an investment policy statement should do. Barely
had time to go through the requirements for the personal financial plan. It was disjointed, but
there were some important points brought out. Need to use better examples, and then speak of
each area in detail and not jump around. Reviews: 6,5,5,6,5