Getting Started
What’s the first step before investing?
Build an emergency fund.
Why set clear goals?
Goals guide investment choices and timelines.
Define risk tolerance.
How much volatility an investor can handle.
What is compound interest?
Earnings that generate more earnings over time.
What’s wrong with timing the market?
It’s nearly impossible and often leads to losses.
What’s an emergency fund?
Savings set aside for unexpected expenses.
Example of a short-term goal.
Saving for a car or vacation.
Why diversify investments?
To spread risk across different assets.
Why start investing early?
More time for compounding to grow wealth.
Why avoid following trends blindly?
Trends can be risky and not based on fundamentals.
Why pay off high-interest debt first?
Debt costs more than typical investment returns.
Example of a long-term goal.
Retirement or buying a house.
Higher returns usually mean what?
Higher risk.
$100/month at 7% for 10 years ≈ ?
About $17,000.
Why not invest money you’ll need soon?
Market fluctuations could cause losses before you need it.
Name one beginner-friendly platform.
Examples: Fidelity, Schwab, Robinhood, Acorns.
What’s dollar-cost averaging?
Investing a fixed amount regularly regardless of market price.
What’s volatility?
How much an investment’s price moves up and down.
Earnings that generate earnings is called?
Compound interest.
What happens if you don’t research?
You may invest in unsuitable or risky assets.
What’s a custodial account used for?
Allows parents/guardians to invest for minors.
Why is time in the market more important than timing the market?
Long-term growth beats trying to predict short-term moves.
Give an example of a high-risk beginner mistake.
Cryptocurrency or speculative stocks.
$5,000/year at 7% for 30 years ≈ ?
About $500,000+.
Biggest mistake beginners make?
Not starting early or failing to stay consistent.