Basics Beginner: Investment Goals

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1.
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.
2.
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.
3.
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.
4.
Which of the following is not a reason to invest for growth?
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To pay off current debts. Growth investing usually uses a long-term horizon, whereas paying off debts is usually done as soon as possible.
5.
The portion of the future over which you will invest is your _______.
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Time horizon. Taking your time horizon into consideration will help you determine how to allocate your resources.
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.