What Makes an Investment Feel Safe?
WHAT MAKES AN INVESTMENT FEEL SAFE?
For most investors, the biggest fear in making an investment is that they’ll lose most, if not all of their money. Hence, a safe investment to most would be considered an investment that reduces the risk of losing money, even if the returns are a lot less. Other investors look to make their money grow. For these investors, an investment can still be considered a safe investment so long as their risk of losing money is equally weighted with a chance for a good return on their investment.
Use the following questions as a guide prior to making your investment choices:
- Can I afford to make an investment at this time?
- Can I afford not to make an investment at this time?
- Will I be able to withdraw my investment if I need to?
- Can I invest and not worry about how my investment is doing?
- Do I need to know beforehand what my return will be on my investment?
- Am I willing to make less return so long as my investment is relatively secure?
- How would I feel if I lost all of my investment?
- Will the return on my investment stay relative to the economy?
Not all investments are safe
Investments can actually be considered a form of gambling - so if you put in a lot of money and roll high and you can make a lot of money, but in the same breathe you can lose a lot of money as well. So if you don’t want to take chances with your money, then look for investments that are slow to grow because if they are slow to grow chances are they will be slow to fall as well.
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
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