Basics Beginner: Investment Goals

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1.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.
2.
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.
3.
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.
4.
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.
5.
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.
6.
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.