Choose wisely. There is only one correct answer to each question.
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1.
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.
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.
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.
4.
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.
5.
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..
