why is it important for you to understand your risk tolerance before you start investing?\nits recommended…

why is it important for you to understand your risk tolerance before you start investing?\nits recommended that people with a low risk tolerance shouldnt invest at all\nyou should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with\nit helps you decide if you want to participate in your employers match program for your 401(k)\nif you have a high risk tolerance, you may be eligible for lower fees since you wont care if your portfolio drastically loses value\n11 multiple choice 5 points\nkatrina works for pennys pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. in her budget, she only has $150 per month available to save for retirement. what should she do?\ncontribute $75/mo to her 401(k) and $75/mo to an ira, so that shes diversified\nsave the $150/mo in a bank account until she has enough to max out her 401(k), and then invest\nopt out of the 401(k) plan since she doesnt have much to contribute; use the money elsewhere in her budget\ncontribute the full $150/mo to the 401(k) because her company will match that full amount, \doubling\ her investment every month\n12 multiple choice 5 points\nsam is 22, just started his first full - time job, and is selecting his investments through his companys 401(k) plan. why might a target date fund (tdf) be a good option for sam?\na tdf is actively managed by a fund manager but comes with low fees\na tdf is insured by the federal government, so sams money is protected even if the fund performs poorly\na tdf will automatically adjust his asset allocation based on the retirement year he has chosen\na tdf buys a single stock and bond so that beginner investors can practice day trading

why is it important for you to understand your risk tolerance before you start investing?\nits recommended that people with a low risk tolerance shouldnt invest at all\nyou should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with\nit helps you decide if you want to participate in your employers match program for your 401(k)\nif you have a high risk tolerance, you may be eligible for lower fees since you wont care if your portfolio drastically loses value\n11 multiple choice 5 points\nkatrina works for pennys pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. in her budget, she only has $150 per month available to save for retirement. what should she do?\ncontribute $75/mo to her 401(k) and $75/mo to an ira, so that shes diversified\nsave the $150/mo in a bank account until she has enough to max out her 401(k), and then invest\nopt out of the 401(k) plan since she doesnt have much to contribute; use the money elsewhere in her budget\ncontribute the full $150/mo to the 401(k) because her company will match that full amount, \doubling\ her investment every month\n12 multiple choice 5 points\nsam is 22, just started his first full - time job, and is selecting his investments through his companys 401(k) plan. why might a target date fund (tdf) be a good option for sam?\na tdf is actively managed by a fund manager but comes with low fees\na tdf is insured by the federal government, so sams money is protected even if the fund performs poorly\na tdf will automatically adjust his asset allocation based on the retirement year he has chosen\na tdf buys a single stock and bond so that beginner investors can practice day trading

Answer

Brief Explanations:

  1. Comprender la tolerancia al riesgo es crucial para adaptar el portafolio de inversiones al nivel de riesgo con el que uno se siente cómodo.
  2. Katrina debe contribuir el monto máximo a su 401(k) ya que su empresa lo duplicará, lo que es una oportunidad de ahorro adicional.
  3. Los fondos de fecha objetivo ajustan automáticamente la asignación de activos en función del año de retiro elegido, lo que es conveniente para inversores principiantes como Sam.

Answer:

  1. You should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with
  2. Contribute the full $150/mo to the 401(k) because her company will match that full amount, "doubling" her investment every month
  3. A TDF will automatically adjust his asset allocation based on the retirement year he has chosen