Review Questions
26. How do you go about finding the right person to help you invest?
To find someone to help you invest you can look around at different people and see who you like the most, you can ask friends and family members if they know anyone, you can also base your decisions off of the teaching that you've already learned. It is important to make sure that the person has experience and knows what they are talking about.
27. What was the most important fact or idea about investing that you learned in this lesson?
One of the most important thing that I've learned about investing is that I need to start when I am young, and not to put all my eggs in one basket.
28. Name one things from this lesson that you could apply to your life right now.
One thing I learned now is that I should not invest in something I do not understand, so if it does not make sense to me that I should seek help or leave it alone.
29. Daniel just graduated from college and wants to invest 15% of his income into mutual funds. He earns an annual salary of $32,000 but is $21,000 in debt with his car and student loan. He has $500 in savings. What steps does Daniel need to take?
I think that Daniel should still invest in a mutual fund, but he shouldn't invest 15% off the bat. He needs to work on paying for his debt off and then he can gradually raise the percentage of what he is investing.
30. How are single stocks different from mutual funds and which is the better investment?
A single stock is just that, a stock from one company. A mutual fund is a collection of similar, mutual, companies. I think that the best investment is a mutual fund.
Case Study
33. Brooke's friend has been bugging her to invest in gold. She says it has been trading really high and will only continue to go up in value. Brooke has $1000 that she is ready to invest. She knows you listen to Dave's show and wants to know what he would say. What would you tell her?
Never to invest in gold, because gold is a really bad investment. It does not bring you much return, and is only worth as much as you'll pay for it. (Leroy Jaden)
26. How do you go about finding the right person to help you invest?
To find someone to help you invest you can look around at different people and see who you like the most, you can ask friends and family members if they know anyone, you can also base your decisions off of the teaching that you've already learned. It is important to make sure that the person has experience and knows what they are talking about.
27. What was the most important fact or idea about investing that you learned in this lesson?
One of the most important thing that I've learned about investing is that I need to start when I am young, and not to put all my eggs in one basket.
28. Name one things from this lesson that you could apply to your life right now.
One thing I learned now is that I should not invest in something I do not understand, so if it does not make sense to me that I should seek help or leave it alone.
29. Daniel just graduated from college and wants to invest 15% of his income into mutual funds. He earns an annual salary of $32,000 but is $21,000 in debt with his car and student loan. He has $500 in savings. What steps does Daniel need to take?
I think that Daniel should still invest in a mutual fund, but he shouldn't invest 15% off the bat. He needs to work on paying for his debt off and then he can gradually raise the percentage of what he is investing.
30. How are single stocks different from mutual funds and which is the better investment?
A single stock is just that, a stock from one company. A mutual fund is a collection of similar, mutual, companies. I think that the best investment is a mutual fund.
Case Study
33. Brooke's friend has been bugging her to invest in gold. She says it has been trading really high and will only continue to go up in value. Brooke has $1000 that she is ready to invest. She knows you listen to Dave's show and wants to know what he would say. What would you tell her?
Never to invest in gold, because gold is a really bad investment. It does not bring you much return, and is only worth as much as you'll pay for it. (Leroy Jaden)