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1.
Why is setting your saving and spending rate more important in the investing pyramid than investment selection?
It helps you cope in the event of a shortfall in your investments.
2.
Asset allocation means _______.
Dividing your portfolio among stocks, bonds, and cash investments. Although there is some truth to the other options, this one is the basic definition of asset allocation.
3.
Once you're retired, you won't need to adjust your spending rate.
False. Market downturns and unexpected expenses can necessitate adjusting your spending rate.
4.
What types of activities form the base of the investment pyramid?
The most important activities for investment success. The other parts will depend on these.
5.
Why does budgeting still matter after you have stopped saving for retirement?
You may need to adjust your spending rate at times during retirement. Especially during market downturns.
