Question

8 many professional financial planners give which of the following advice relative to investing for retirement?

invest only in bonds
invest only in stocks
do not invest until you are completely out of debt
pay yourself first

Explanation:

Analyze the options relative to retirement investing

Using the Retirement Planning and Personal Finance Basics knowledge points

• Invest only in bonds / Invest only in stocks: These options violate the core financial principle of diversification. Professional planners advise against putting all assets into a single asset class.
• Do not invest until you are completely out of debt: While high-interest debt should be prioritized, waiting until you are completely debt-free (including low-interest debt like student loans or mortgages) can cause you to lose years of compound interest and employer matching contributions.
• Pay yourself first: This is a fundamental personal finance rule. It means routing a portion of your income directly into savings and retirement accounts before paying bills or spending on discretionary items.

Identify the professional advice

Using the Personal Finance Basics knowledge point

"Pay yourself first" is the standard, widely recommended strategy by financial planners to ensure consistent retirement savings.

Answer:

• Invest only in bonds
• Invest only in stocks
• Do not invest until you are completely out of debt
• Pay yourself first (Correct answer)