Objective: Outline major concepts in health, disability, and long-term care insurance

Action Involvement Projects on page 408, 1, 2 and 3 on page of your textbook

Action Involvement Project #1: When to Invest. The text outlines certain suggestions on readiness to invest on pages 380–381. Make a list of likely dates when you think you will have accomplished each (perhaps in one, two, or five years). Make a table of your results. | Sacrifice some income and put some cash into a diversified investment portfolio for the future. | I think this is something that I can start doing now. | Accept substantial risk when investing for the long term | I don’t think I’m currently in a position to take a big risk. Possibly in 5 years. | Invest regularly through your employer’s retirement plan. | I currently already do this. I may be more aggressive with this in 5 years. | Invest no more than 5 or 10 percent of your portfolio in any single company stock, including that of your employer. | I believe in the next 1-2 years I will be able to look more closely at investing. | Rebalance your portfolio at least once a year based on your chosen asset allocation strategy. | This is something I will start doing in the next year. | | | | Action Involvement Project #2: Your Investment Strategy. The text discusses four strategies for long-term investors on pages 392–402. Which one appeals to you most and why? | Portfolio diversification is what I would choose as my strategy because, as suggested by the book, I shouldn’t have more than 10% of my money invested in any one stock. This means that if the market takes a hit, my money isn’t all gone because all of my “eggs” won’t be in the same “basket”. There are no stocks that are a sure thing and to take a gamble when investing it’s a better idea to spread out the money over several stocks in case one does bad than