Basics Beginner: Investment Goals

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1.
To get a clear picture of your current financial status, you can calculate your _______.
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Net worth. Your net worth will tell you where you are as you begin investing.
2.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.
3.
If you wanted to accumulate assets for a down payment on a home in 10 years, which investment would be best suited for that?
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Growth mutual fund. This investment is liquid and provides better opportunity for appreciation than money market funds or CDs.
4.
A recent retiree is likely to have an investment goal of current income.
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True. Retirees often seek additional income to supplement their pension and Social Security income.
5.
Investment advisors suggest increasing the number of fixed-income securities in your portfolio as you age because _______.
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Advanced age makes it difficult to regain losses from more volatile investments such as stocks. Having fixed-income securities in your portfolio can reduce this problem.
6.
A financial advisor focuses only on one specific area of your finances.
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False. A financial advisor focuses on your overall financial health.