Basics Beginner: Investment Goals

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1.
Financial advisors can help you consolidate your debts.
Choose wisely. There is only one correct answer.
True. Debt-reduction is an important first step in managing your finances.
2.
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.
3.
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.
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 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.
6.
Investment advisors suggest increasing the number of fixed-income securities in your portfolio as you age because _______.
Choose wisely. There is only one correct answer.
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.