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.
A danger of becoming a "collector" of investments rather than a holder of a real portfolio is that _______.
You could lose sight of your investment goals. Many collectors inevitably buy investments for the wrong reasons, especially after years of doing so.
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.
