This module looks at various investment strategies advisers can use when constructing portfolios including buy and hold, contrarian, and active versus passive management. Time value of money is covered along with calculations using a financial calculator. Planning for retirement topics are also addressed from retirement needs analysis and dealing with sequence of returns risk to determining a safe withdrawal rate while in retirement.

10–1 Analyze various investment strategies and choose the appropriate strategy based upon the investor’s circumstances.
10–2 Identify factors that undermine an effective investment strategy.
10–3 Apply time value of money calculations to a given investment problem.
10–4 Describe issues impacting retirement needs analysis.
10–5 Analyze a situation to determine how much money will be needed for retirement.
10–6 Identify issues related to determining a safe initial withdrawal rate.

Author: Jim Pasztor, MS, CFP®

Jim Pasztor, vice president of Academic Affairs at the College for Financial Planning is also involved with several of the College’s investment courses and the white paper series. He is a CFPM® practitioner, and has an MS degree in personal financial planning and an MSF degree in financial analysis, both from the College for Financial Planning. Jim was the recipient of the Edward D. Baker III Journal Award from IMCA in 2014 for his article Endogenous Risk and Dangers to Market Stability. You can reach Jim at jim.pasztor@cffp.edu.

Complexity Level: Advanced