Guidelines for the Assessment of Money Management

Q1. First you must find a company, probably on Morningstar, which has issued bonds and provided dividends. Select a company, click on "companies" and then "bonds". If the company has bonds it will list them. The trick then is to find one maturing about now. Note its YTM and use it to determine what ROI you would have received on bonds with them. You are welcome to use any other route to get the bond ROI.

For the return on investment if you bought stock five years ago and sold them today, you obviously need the purchase and selling price. You also need the dividends and you must consider the time value of the cash flow. You may choose between a DCF type of methodology and the technique of investing dividends in a savings account.

Don't forget to describe the company.

Q2. There is a lot in Q2, and not only from Tutor's's part of the module. Be sure your self-analysis leads to a risk profile in terms of type of portfolio you go for. Add your view on the macro-economic outlook for whatever country/ies and currency/ies you invest in. Your portfolio must reflect both these factors.

For this exercise you are obliged to choose funds - of any type, but funds (not bonds, not stocks -except via funds). Describe the funds. Do so in your own words with a minimum of copy/pasting of text or charts. Include a mention of costs and why you like the funds. I'd recommend 5 -7 altogether. For a really good grade you need to break down the security types within the funds to ensure they match your portfolio profile.

Spend a few words on why you prefer managed or exchange-traded funds, or some mixture of the two.

Q3. One thing I am definitely looking for here is the "other side" of the interim assessment aimed at building a nestegg. You may take the figure you achieved then, or any other amount you reckon you can achieve in the light of your work with your tutors. Use it as the start of a draw down table with all that implies about your life expectancy, earnings on investment and draw down rate. I do want a draw down table not a build up one! You may not do this in real life, but that's what we want from you now.

You may like to incorporate a few words about you life post-retirement, or at least the financial aspects of it (about 4500 words).