By Tim Stephenson
During these times of economic uncertainty, it is more important than ever before to thoroughly assess potential investments before making big decisions. Don’t hesitate to seek professional investment advice from an experienced and trusted financial advisor.
The process of selecting the best investment for a particular need or situation is made easier by clearly answering the following questions.
- Why are you investing? Do you need current income for expenses; are you looking to preserve or accumulate assets?
- When will the money be needed? At any moment? A year or five years from now?
- How much risk can you assume? Can you afford to lose all or a part of the investment and not affect your lifestyle?
- Are taxes a concern? If the investment is taxable, will the additional tax push you into a higher tax bracket?
- What is the economic outlook? Investment opportunities will vary, depending on whether the economy is growing or shrinking.
- Do you have the skill and knowledge to manage the investment? Is professional money management needed?