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.
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.
3.
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.
4.
The plan you set with a financial advisor will be regularly reviewed.
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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.
5.
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.
6.
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.