Basics Beginner: Investment Goals

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

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1.
The plan you set with a financial advisor will be regularly reviewed.
Choose wisely. There is only one correct answer.
True. The plan will be reviewed to determine how well you are progressing toward meeting your goals and to determine whether they should be changed.
2.
Which of the following is not a long-term growth investment?
Choose wisely. There is only one correct answer.
Certificate of deposit. A certificate of deposit is not a long-term growth investment. It is an income investment.
3.
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.
4.
All of the following investments would be suitable for current income except _______.
Choose wisely. There is only one correct answer.
Aggressive-growth mutual funds. These would be unsuitable for an income investor because growth investors sacrifice current income and usually wait long periods while their investments grow in value.
5.
Time horizon is the amount of time you have to achieve your investment goal.
Choose wisely. There is only one correct answer.
True. It can be short-term or, in the case of retirement planning, decades long.
6.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.