Basics Beginner: Investment Goals

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1.
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.
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.
One component of investing wisely is to set specific goals.
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True. Setting goals allows you to direct your investing carefully.
4.
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.
5.
Time horizon is the amount of time you have to achieve your investment goal.
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True. It can be short-term or, in the case of retirement planning, decades long.
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.