About Gerard Cohen
The Specific Investment Goal
Your Fiscal Status
The Risks of the Investment
All types of investment indeed have the risks. The difficulties and the hardships of each investment can be different and vary. One investment might be high-risk, but some are an extremely low investment. High-risk investment usually promises higher rewards. Lower risk investment promises low rewards. You have the liberty to take your own risks. As mentioned, it is not for the fainted heart. If you are not mentally ready to do this, you will need to think again.
What are your purposes? You must answer this question really well so that you will have the bigger picture of what to expect from your future investment. Whether it is for holiday abroad, marriage, charity, having fun, retirement fund, or anything, you should be clear about the purposes of your investment.
Once they are all considered, you will need to weigh the risks of the investments.
Investments Risks Levels
When you look for the investment, you must know that the risks of the investment can vary depending on the types of investments. As we mentioned before, the investment is not a small deal, but it is doable. You should always set a good plan for it. It is also important to educate yourself on the different types of investments so that you will know each pro and cons.
As mentioned, low-risk investments usually have low rewards and low key. The low-risk types of investments target the conservative investors who want to save their money on short term or long term without having to deal with risks involved in the investment type. Most of the low-risk investments offer lower rewards than other types of investments. But they are also much safer than higher risks investments. Some forms of low-risk investments are deposits, market funds, and some bonds. Profit might not be the priority. Rather, the users want to make their money safe and secure.
You also need to know that it does not offer you high returns, but it offers the security and stability. If you don’t have big capital and don’t want to risk it to lose, low-risk investments are probably the best one for you.
Moderate risk investments are usually prevalent for those who want to invest in the long term with the moderate return. The investments in this category are stocks, mutual funds, and bonds. They give a good return but usually over the long term. Although the investment is riskier than depositing, the money earned from these programs look more awesome. Moderate risks investments usually return yields higher than low-risk investments. The amount of the return can be as low as 5% and up to 12%.
The Investments Nowadays
The investments nowadays open the wider windows of opportunities for all folks. Therefore, you will have the alternative investments to consider other than conventional methods such as stocks, cash, etc. But it also does not close the possibility that you can be involved with the conventional investments too.
Investing in real assets
In most cases, the assets are high in value, so you will mostly get the high return. Some common real assets are real estate, jewelry, oil, metals, etc.