Financial Planning

There is not one set of principles of rules about saving and investing that everyone can follow.

True

Name at least four savings and investing principles or strategies.

1. Keep money in a saving account or checking account 2. Make strategic investments in a variety of different types of investments. Diversify to balance out losses and gains in different investment types. 3. Commit to invest a set amount every pay period, usually in stocks, mutual funds, or retirement investments. 4. Invest in low-risk investments, such as savings bonds or CDs

Diversification means that you invest in______.

A variety of types of investments in order to minimize risk

Mutual funds are the riskiest type of investment.

False

Lily would like to gather more information about investing in stock. What resources can she use to find out more information?

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

The difference between a chosen investment and one that is passed up is______.

Opportunity cost