Investment Planning – FAQs

Creating an investment portfolio
Does a state savings plan allow me to choose my own investments?
How aggressive should I be when I invest for retirement?
How do I construct an investment portfolio that’s right for me?
How long should I hang on to an investment?
How much of my portfolio should I keep in stocks?
How should I structure my retirement portfolio?
What recourse do I have if I’m unhappy with my state savings plan’s investment performance?
What’s the difference between how a state savings plan invests and how a prepaid tuition plan invests?

Investing basics
How can I gauge my risk tolerance?
Is there any type of insurance that can protect against losses from investments?
Should I invest my extra cash or use it to pay off debt?
What is asset allocation and how does it work?
What is dollar cost averaging and how do I know if it’s right for me?
What’s the difference between growth investing and value investing?

Mutual funds
How does a 529 plan compare with investing in a mutual fund in my name?
Is it better to invest in a tax-free or a taxable mutual fund?
Should I invest in mutual funds or individual securities?
What is a mutual fund prospectus and how do I read it?
What is the difference between an open-end and a closed-end mutual fund?

Savings bonds
Are government savings bonds risk free?
Are savings bonds a good way to save?
Do series EE bonds offer any special advantages if used for college savings?

Should I invest in mutual funds or individual securities?
Should I work with a stockbroker to buy individual stocks?
What are DRIPs?
What is a stock split?
Who do I call if I have a complaint about my stockbroker?

How did the Jobs and Growth Tax Relief Reconciliation Act of 2003 change capital gains tax rates?
I have investment property. What does basis mean, and how do I determine the basis of my property?
Will I have to pay tax on my investment income?