Assignment- Goals Worksheet Flashcards
0
Q
- Risk
A
Are you willing to pay the cost now for something later. Understand how much risk able to take, weigh opportunity cost now/later.
1
Q
- Opportunity Cost
A
What else could you be doing.. What are you giving up now for w greater opportunity purpose?
2
Q
2A. Inflation risk
A
Value of money goes down= everything goes down in price, money less valuable= things more expensive
3
Q
2B. Interest Rate Risk
A
Price of money. (How much more borrowing will cost you- loans)
4
Q
2C. Income risk
A
What’s the risk of you lost your job? How would your life change?
5
Q
2D. Personal risk
A
Risk to you as person- (accident, injury) how life for you would change?
6
Q
2E. Liquidity risk
A
Cash on hand, the ability to get cash.
7
Q
2F. Systemic risk
A
Risk to entire financial system die to war/ natural disaster- economy falls.
