Strategy Beginner: Determining Your Asset Mix

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1.
If you become more aggressive with your investments, which of the following is likely to occur?
Choose wisely. There is only one correct answer.
Your risk will increase. As you become more aggressive, your risk will increase.
2.
Investment professionals say which of the following is more important?
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Your asset allocation. While selecting good funds or stocks is certainly important to meeting your goals, most investment professionals agree that asset allocation is even more important.
3.
Which is NOT a limitation of online asset allocation tools?
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They dont consider your time horizon. Most online asset allocation tools take your time horizon into account. They usually dont consider your tax situation, though. And all make different assumptions about things like inflation.
4.
Why is it hard to get consistent recommendations from different online asset allocation tools?
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They all use different assumptions. They all use different assumptions about inflation rates, earnings, and possibly taxes.
5.
If you want to improve your chances of meeting your investment goal, what can you do?
Choose wisely. There is only one correct answer.
Invest more money now. Investing more will always improve your chances. So will lengthening your time horizon or becoming more aggressive with your investments.