CH 12, sections 1-5

Miss Zuniga is planning for her future. What is the main idea of her plan based on the given text?

• Miss Zuniga believes that retirement planning should start early

• Miss Zuniga thinks retirement is only for old people

• Miss Zuniga is investing in single stocks as she believes it's the best option

• Miss Zuniga feels that retirement planning is not necessary

According to the financial advice given to Mr. Arias, what is the key to successful retirement planning?

• Borrowing money to invest

• Starting early and consistent investing

• Investing purely for tax savings

• Not understanding where he's putting his money

Mr. Zarco is considering investing his savings. What is the purpose of diversification in his investment?

• For Mr. Zarco to put all his financial eggs in one basket

• To reduce Mr. Zarco's risk by spreading out among many investments

• For Mr. Zarco to borrow money to invest

• For Mr. Zarco to invest purely for tax savings

Miss and Mr. Cano are considering investing in mutual funds. According to the text, what is the recommended strategy for them to diversify their mutual funds?

• Invest all their savings in growth stock mutual funds

• Invest their savings equally among four different types of mutual funds

• Invest all their savings only in international stock mutual funds

• Invest all their savings only in aggressive growth stock mutual funds

Mr. Ramirez is planning for his retirement. According to the text, what is his main source of income during retirement?

• Investment returns from his savings

• Social Security benefits

• Income from real estate properties

• Inheritance from his parents

Mr. Granados is thinking about his future and wants to ensure his possessions are distributed according to his wishes after his death. What is he planning to do?

• He is starting his retirement planning

• He is investing in real estate

• He is doing estate planning

• He is trying to avoid paying taxes

Mr. Ramirez is planning his retirement and is considering when to start taking his Social Security benefits. According to the text, what is the recommended age for him to start?

• 75

• 70

• 67

• 62

According to the financial journey of Mr. Morales, a successful millionaire, what was the main reason for his success?

• Mr. Morales did not understand where he was putting his money

• Mr. Morales borrowed money to invest

• Mr. Morales consistently invested over a long period of time

• Mr. Morales invested purely for tax savings

Miss Arias has recently started earning. According to the text, what is the recommended way for her to handle her money?

• Stay in debt

• Borrow money from Ramirez to invest

• Work her financial plan

• Borrow against her 401(k)

Cano, Zuniga, Granados, Garcia, and Morales are discussing their future plans. What is the main message they should take away from their discussion?

• They should focus only on tax planning for their retirement

• Retirement is something only old people should worry about

• They should start planning for their retirement as early as possible

• Planning for retirement is not an important task