C3 Asset Allocation

Why do individuals invest?

• To give away all their savings

• To keep money under the mattress

• To maximize long-run benefits from income

• To spend all their money immediately

What are the steps in portfolio management process?

• Spend, save, invest

• Construct the Portfolio, Monitor and Update

• Borrow, lend, spend

• Buy, hold, sell

Why is a policy statement important to the planning process?

• To guide all investment decisions

• To complicate the process

• To confuse investors

• To hide investment goals

How and why do investment goals change over a person’s lifetime?

• They don't change

• Due to changes in income

• Due to changes in expenses

• Due to changes in age and circumstances

What is the purpose of life insurance in financial planning?

• To provide death benefits

• To provide retirement benefits

• To provide investment advice

• To provide additional cash values

What is the purpose of a cash reserve in an individual's financial plan?

• To invest in risky assets

• To meet emergency needs

• To buy luxury items

• To donate to charity

What are the phases in an individual investor's life cycle?

• Growth, maturity, decline

• Accumulation, consolidation, spending/gifting

• Childhood, adulthood, retirement

• Start, middle, end

What is the focus of a policy statement in portfolio management?

• Historical events

• Short-term and long-term needs

• Sports events

• Weather conditions