Working with a trusted financial professional is one of the best ways to help improve your overall financial situation, but it's not the only thing you can do. Educating yourself about personal finance concepts can help you better understand your advisor's recommendations, and result in more productive and potentially more prosperous financial planning discussions. Take this brief quiz to see how well you understand a few of the basics.
1. How much should you set aside in liquid, low-risk savings in case of emergencies?
a. One to three months' worth of expenses
b. Three to six months' worth of expenses
c. Six to twelve months' worth of expenses
d. It depends
2. Diversification can eliminate risk from your portfolio.
3. Which of the following is a key benefit of a 401(k) plan?