Financial Planning

opportunity costs

the difference between a chosen investment and one that is passed up

liquidity

the ease with which an investment can be turned into cash without losing its value

There is not one set of principles or rules about savings and investing that everyone can follow. True False

true

Name at least four saving and investing principles or strategies.

1 diversification 2 start with investments that are less risky and work your way to riskier investments 3 keep money in a savings account or checking account 4 start listing or outlining your plan for saving and investing

Diversification means that you invest in _____. a variety of types of investments in order to minimize risk a variety of stocks to minimize risk the types of investments that are easy to get your money out the riskiest types of investments

a variety of types of investments in order to minimize risks

Mutual funds are the riskiest type of investment. True False

false

Lilly would like to gather more information about investing in stock. What resources can she use to find out more information? online portfolios, stock analysts, and books principles, strategies, and risks full-service stock broker, books, financial articles, and financial advisers fund manager, friends, and parents

full-service stock broker, books, financial articles, and financial advisers

diversification

investing in a variety of investments in order to limit losses in the event of a sharp decline in a particular type of investment

The difference between a chosen investment and one that is passed up is _____. liquidity risk rate or return opportunity cost

opportunity costs

Choose all that apply. Select each of the factors you should consider when investing. opportunity cost risk rate of return liquidity

opportunity costs risk rate of return liquidity