Are investments risky? Whether you invest in a business, real estate or other investment the higher the return the better. Higher return tells you that your money is working hard for you. Own a golden goose that lays golden eggs.
The return of the investment is calculated as the annual income from the investment divided by the cash you invested. The annual income is also called cash-flow.
The return depends on the type of investment, the economy and also the financial intelligence of the investor. Expect a low return on your investment if you have a low financial intelligence.
Someone with low financial intelligence do not know what to look in an investment that generates higher returns and will then invest in investments with low return or save his/her money.
If you want a high return on your investments you need to acquire financial education and gain experience by investing. Take the time, put the effort and energy to study, research and take action. Low to no financial education leads to higher risk. Higher returns do not mean higher risk.
Are investments risky?
Investments are risky if you are uneducated. Are you educated or uneducated when it comes to your investments? If you are educated, you know what to do and you take the time to study, research and learn. Most of the time it is not the investment that is risky, it is the investor that is uneducated.
Take the time to study and research the investment. Do you have full control or not? Talk to people with investment experience in businesses, real estates or the investment of your interest. Finally, follow your own heart for the investment decision.
Tips to invest
- Get financially educated. Learning is an investment
- Study and research the investment. Take action on what you learned. Gain investment experience
- Understand the investment and the returns on the investment
- Have control in your investments
- Become your own advisor
For your financial success!
