Investment Strategies for $10,000

Why is it important to pay off high-interest debt before investing in the market?

• It increases your credit score immediately.

• It reduces your monthly expenses.

• It guarantees a return equivalent to the interest rate.

• It allows you to invest in more stocks.

What is a recommended emergency fund amount according to the video?

• Six months of living expenses

• Three months of living expenses

• One month of living expenses

• Twelve months of living expenses

What is a key benefit of investing in index funds or ETFs?

• They offer guaranteed returns.

• They are risk-free.

• They provide instant diversification.

• They require no initial investment.

What is a benefit of using Weeble for investing in ETFs?

• It restricts overnight trading.

• It charges high commissions.

• It provides commission-free trading.

• It offers limited research tools.

What is a potential downside of investing in individual stocks?

• They are only available to experienced investors.

• They can be highly volatile.

• They require no research.

• They are always less profitable than index funds.

What should you do before investing in individual stocks?

• Ignore the company's earnings reports.

• Only invest in one company.

• Diversify your investments.

• Invest without any research.

What is the main purpose of low-risk investments like high-yield savings accounts?

• To make you rich quickly.

• To serve as a safety net in your portfolio.

• To avoid paying taxes.

• To invest in real estate.

What is a characteristic of Treasury bonds?

• They are highly liquid.

• They offer no interest.

• They involve lending money to the government.

• They are risk-free.

Why might younger investors consider high-risk or speculative investments?

• They have more time to recover from losses.

• They are guaranteed to make a profit.

• They require less initial capital.

• They are less volatile than other investments.

What is a potential advantage of investing in real estate?

• It requires no initial investment.

• It guarantees a high return.

• It allows the use of leverage for higher returns.

• It is risk-free.