Investment Strategies and Portfolio Management

What is one of the key benefits of a Roth IRA mentioned in the video?

• It requires no minimum contributions.

• It offers a higher interest rate than savings accounts.

• Gains within the account are tax-free.

• Contributions are tax-deductible.

Why did the speaker regret choosing conservative holdings in their Roth IRA?

• They were penalized for conservative investments.

• Conservative holdings have higher fees.

• Conservative holdings are not allowed in Roth IRAs.

• They missed out on potential higher gains.

What is a three-fund portfolio typically composed of?

• Savings accounts, CDs, and money market funds

• Cryptocurrency, gold, and silver

• Real estate, commodities, and cash

• U.S. stocks, international stocks, and bonds

Which company was used as an example of a successful long-term investment?

• Microsoft

• Home Depot

• Tesla

• Amazon

What should investors consider when choosing their investment style?

• The latest market trends

• The most popular stocks

• Their personal risk tolerance

• The advice of friends

What is a key advantage of a 401K plan?

• Immediate access to funds

• No tax benefits

• Unlimited contributions

• Employer matching contributions

Why is diversification important in a taxable brokerage account?

• It reduces the risk of loss.

• It eliminates all fees.

• It is required by law.

• It guarantees high returns.

What is a target date fund designed to do?

• Provide immediate liquidity

• Maximize short-term gains

• Adjust asset allocation as retirement approaches

• Focus solely on international stocks

In the resource matrix, what is suggested for young and aggressive investors?

• 100% bonds

• Only real estate investments

• A mix of ETFs and individual stocks

• High-yield savings accounts

For older and conservative investors, what is a recommended strategy?

• Focus on capital preservation

• Avoid all bonds

• Invest heavily in cryptocurrency

• Take high risks for high rewards