Choose wisely. There is only one correct answer to each question.
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1.
Why is it important to map out what each of your investment goals will cost?
Calculating the costs of your goals will allow you to see whether you can reach all of your investment objectives. There are no guarantees in investing, just trade-offs..
2.
What determines your asset allocation for each portfolio that you have?
Both of the above. Both the time horizon and the final portfolio value needed to fund the goal will help you determine your asset allocation.
3.
What are some benefits of mapping out your investment goals?
All of the above. All of these are benefits, though not everyone may need to make the tradeoffs.
4.
If you have three financial goals, how many portfolios should you probably have?
Three. Most of the time, you'll need a different portfolio for each financial goal. If two goals share the same time horizon--say you plan to send your twins to college in 10 years--one portfolio may be able to fund both goals.
5.
In order to prevent yourself from becoming just a collector of investments, what should you do?
Make sure that your goals are the driving forces behind your investments. No matter how many investments you have, you should make your goals the driving force behind them.
