While we can’t provide investment advice, desired return is one factor many people consider when thinking about investments for their portfolio, however it is not the only consideration. Here are some other questions you might ask yourself before you make a decision:
- How much risk can I take? Risk and return are related. Generally, the higher the potential return of an investment, the higher the risk.
- Can I afford to lose money? More risk not only comes with the potential for higher returns, but also the potential for greater losses.
- When will I need the money? Your time horizon is the length of time you expect to hold an investment. Your time horizon is a factor in which investments you choose – some will have specified terms, and others may be difficult to sell immediately if you need the money.
See more questions to ask before you invest, and learn about the risk characteristics of different asset classes. You may consider working with a financial advisor to help you understand your investment options – if you do, be sure to check their registration.