Basics Beginner: Investment Goals

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1.
It doesnt matter what you invest in as long as you invest.
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False. Different investments produce different returns; your investments need to match your investment goals.
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.
A utility stock would be unsuitable for an investor seeking current income.
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False. Income stocks include preferred stock, utility stock, and large-cap, blue chip stocks. These stocks regularly pay income dividends.
5.
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.
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.