Choose wisely. There is only one correct answer to each question.
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1.
An investment plan for an upcoming expense typically calls for a different approach than does planning for an expense several years down the road.
True. The difference in time horizons allows for different investment approaches.
2.
If you set a financial goal and it fails, what could be a reason why it failed?
Any of the above. A goal could fail for any of these reasons.
3.
A financial goal that you set might fail because it was _______.
Any of the above. These are all things that sabotage ones efforts. Thats why clear goal-setting is needed.
4.
You must always treat short-term goals conservatively.
False. Generally, goals with short time horizons should take less investment risk; however, you must also consider your risk tolerance -- your ability to take risk if you are to meet your goals.
5.
If you find it difficult to make a habit of diverting small amounts of money into savings, it may help most if you establish _______ first.
A goal. Having a goal gives you some direction for saving.