Strategy Beginner: Long-Term Investing

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1.
Which of the following is not generally a goal of long-term investing?
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Current income. Receiving current income is not generally a goal of long-term investing. Long-term investors understand that they will have to put off income for months or years.
2.
You should take inflation into account when buying long-term investments because _______.
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Inflation erodes purchasing power over time. This is why you should consider the investment returns you can expect to get.
3.
Real estate is generally an effective investment for the long term.
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True. Real estate usually, but not always, grows in value over long periods of time.
4.
Tax-deferred investment accounts usually come with early withdrawal penalties.
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True. Early withdrawal penalties are meant to keep money in investments for long periods.
5.
Bonds with short maturities are effective investments for long-term investors.
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False. Bonds with long maturities are effective investments for long-term investors.