Which of the following is NOT a defining attribute of a financial goal? Option: "The quantum of funds required", "The current age of the person", "The risk tolerance of the investor", "The estimated time to accumulate funds"

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Which of the following is NOT a defining attribute of a financial goal?

"The quantum of funds required"

"The current age of the person"

"The risk tolerance of the investor"

"The estimated time to accumulate funds"

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What is the central argument against solely focusing on specific financial goals?

Goals can limit flexibility and adaptability to unforeseen life events

Financial goals often lead to unrealistic expectations and disappointment

Setting specific goals can create unnecessary pressure and anxiety

Focusing on goals can neglect broader financial well-being and values

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According to the text, what should investors determine before selecting an investment portfolio?

"Risk tolerance level"

"Previous investment experience"

"Short-term and long-term goals"

"Current market trends"

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Why do people often struggle to save for long-term goals?

"They have low incomes."

"They prioritize immediate gratification over future needs."

"They are unsure about their investment options."

"They lack financial literacy."

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What does setting financial goals entail?

"Relying on luck for financial success"

"Creating a vague idea of future wealth"

"Creating targets and methods to achieve them"

"Ignoring current financial realities"

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Why is setting financial goals important in personal finance?

"It eliminates the need for saving, as you'll know exactly how much to earn."

"It ensures you always have enough money for impulse purchases."

"It helps you estimate future expenses and plan accordingly."

"It guarantees you'll achieve financial success without any effort."