Basics Beginner: Investment Goals

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1.
Why is your age important when you create an investment portfolio?
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All of the above. All of these make your age a factor for successful investing.
2.
Financial advisors can help you consolidate your debts.
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True. Debt-reduction is an important first step in managing your finances.
3.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.
4.
A utility stock would be unsuitable for an investor seeking current income.
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False. Income stocks include preferred stock, utility stock, and large-cap, blue chip stocks. These stocks regularly pay income dividends.
5.
Investors have historically been punished for taking market risk.
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False. On the contrary, investors historically have been rewarded for taking market risk.
6.
Which of the following is not a reason to invest for growth?
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To pay off current debts. Growth investing usually uses a long-term horizon, whereas paying off debts is usually done as soon as possible.