1. Think about whether you would choose a full-service brokerage firm (such as Merrill Lynch or Morgan Stanley) or a discount brokerage firm (such as Charles Schwab or Ameritrade) when considering investing for a long-term goal such as retirement or your childrens college. Compare and contrast the different services provided by each, and the value each provides. What would your choice be now? Do you think your choice might change in the future?

2. For an investor, asset allocation is a balancing act. Asset allocation depends on the ability to tolerate risk, investment goals, and time frame. It involves adjusting the percentage of each investment (for example, stocks, bonds, money market funds) to balance risk, taking into consideration the current financial environment. How would a 24-year-old choose an investment, considering age and asset allocation? What about a 60-year-old? Does risk tolerance decrease with age? Explain.