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Level One: Investing Basics

Level One: Investing

Difficulty Level: Low
 
True or False
 
  1. _____ You’re commonly considered a high net worth investor if the total of all your personal and business assets is at least $1 million.
 
  1. _____ Dollar-cost averaging converts international stock prices to U.S. dollars.
 
  1. _____ Gold, real estate and gems are sometimes termed tangible assets.
 
  1. _____ Equities, bonds and cash equivalents are examples of asset classes.
 
  1. _____ If you have investable assets of $50 million, you’re undoubtedly one of the mass affluent.
 
 
Answers:
 
  1. False. A high net worth investor typically has at least $1 million in liquid, investable assets.
  2. False. Dollar-cost averaging is an investment technique that involves buying a fixed dollar amount of a given investment on a regular schedule, without regard to share price.
  3. True. Tangible assets are thought by many to be a hedge against inflation.
  4. True.
  5. False. Even allowing for varying definitions, a liquid net worth of $50 million almost certainly places you among ultra high net worth individuals.