Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
Why should you consider using a government or employer plan to fund your retirement goals?
Both of the above. Plans of this nature encourage participation by offering some kind of tax break and/or contributions by your employer.
3.
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..
4.
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.
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.
