article questions Flashcards
what lesson should the millenial generation learn from the baby-boomers
don’t rely on government, start saving money early
how should you plan to fund your retirement
put away money early (put 15-20% of paycheck in account)
investment risk
making investment choices without sensible education and knowledge about investing
Market risk
the chance of incurring losses due to factors that affect the overall performance of financial market
default risk
the risk that a lender takes on in the chance that a borrower will be unable to make the required payments on their debt obligation
interest rate risk
the potential that a change in overall interest rates will reduce the value of a bond or other fixed-rate investment
opportunity risk
by spending your money (buying one investment) you are reducing the amount of money to spend elsewhere
liquidity risk
the risk that you won’t have money available at times you need it
inflation risk
returns on investments will be lower than the rate of inflation, resulting in less purchasing power
systemic risk
refer to risks outside the control of the investor/company
they represent the risk that something will happen in the external environment to change the value of an investment
Risk:
Bank Savings Account
inflation risk
Risk:
certificate of deposit
inflation risk
interest rate risk
liquidity risk
risk:
money market
interest rate risk
liquidity risk
risk:
US Savings Bond
inflation risk
default risk
risk:
mutual funds
default risk
market risk
