Title: How the Smiths Potentially Saved $75,000 on Tuition Using Intrinsic Value and Smarter Bond Investing Tagline: How the Smiths Potentially Saved $75,000 on Tuition Using Intrinsic Value and Smarter Bond Investing Problem: The Smiths, a couple in their early 40s earning a combined $450,000 annually, are facing the daunting prospect of three college tuitions in the next 5-10 years. Concerned about high tuition costs and the impact on their retirement savings, they're seeking strategies to grow their investment portfolio effectively while mitigating risk. They are currently invested primarily in broad market ETFs and are exploring individual stock selection. Their current investment advisor is recommending high-yield corporate bonds to generate income, but they are unsure if the increased risk is worth the return. Solution: By using the DCF calculator to identify undervalued companies with strong growth potential and complementing it with analysis of safer bond investments via yield and credit spread calculations, the Smiths can potentially enhance their returns while managing risk. This allows them to allocate a portion of their portfolio to growth stocks identified via DCF and the rest to bonds with acceptable risk adjusted returns for tuition saving ROI: The Smiths identified XYZ Corp using the DCF calculator. With the assumptions of 8% revenue growth for the next 5 years, a terminal growth rate of 3%, and a discount rate of 9%, the DCF calculator indicated XYZ Corp was undervalued by 20%. They allocated 10% of their portfolio to XYZ Corp, expecting to see 20% return in 1 year. They also used the Bond YTM and Credit Spread calculators to analyze the risk-adjusted returns of various corporate bonds, identifying investment-grade bonds with a credit spread of 1.5% over treasuries and a yield to maturity that was higher than the after-tax equivalent of a high-yield bond fund (Tax Equivalent Yield Calculator), effectively avoiding riskier high-yield bonds while still generating adequate income. By intelligently allocating to undervalued stocks (DCF Calculator) and carefully selecting the right bonds (Bond YTM and Credit Spread calculators), they projected to save an additional $75,000 towards college tuition over 7 years, compared to a simple broad-market index fund strategy. Description: Uncover hidden gems in the market and maximize your returns! This DCF calculator helps determine a stock's intrinsic value, while our bond calculators enable you to optimize your fixed-income portfolio for upcoming college expenses. Make informed investment decisions that directly impact your family's financial future. Category: Client Service