Basics Beginner: Investment Goals

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1.
All of the following investments would be suitable for current income except _______.
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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.
2.
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.
3.
Which of the following is not a long-term growth investment?
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Certificate of deposit. A certificate of deposit is not a long-term growth investment. It is an income investment.
4.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.
5.
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.
6.
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.