Choose wisely. There is only one correct answer to each question.
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1.
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.
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.
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.
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.
Which statement is true?
You may have more portfolios than you have investments. Depending on how many goals you have, you may have more portfolios than you have investments. That's fine.
