AAII

1. When considering your asset allocation, should you include savings such as your 401(k) plan?

Yes

No

2. You can find low minimum initial investment requirements with:

Government bond funds

Larger stock funds

IRAs

3. Before you start implementing your investment plan, make sure you have:

Hired an investment advisor

Set aside a cash reserve to meet emergency needs

$100,000 to invest

4. Don’t invest entirely in a stock index fund as your beginning investment unless you:

Have a very long-term time frame

Have double the minimum initial investments

Invest through an IRA

5. What should be your primary consideration when choosing a starter fund?

The fund’s minimum initial investment requirement

Your investment strategy

6. When you are ready to diversify beyond your core investments, what’s the minimum percentage commitment you should make to market segments?

5%

10%

1%

QUIZ: First Steps to Successful Investing