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How to Choose an Investment
By Larry Westfall

When you choose to invest your money, the final decision is yours alone. The risk of the investment is also yours.

Before you invest, consider your complete financial situation, looking at both your current and future needs. In general, investors should avoid higher-risk investments unless they have a steady income, adequate insurance, and readily available cash reserves in case of a loss.

Remember these investment basics:

Rule one: No matter how you choose to invest your money there will always be a degree of risk involved.

Rule two: Risk and return go hand-in-hand. Higher returns mean greater risk, while lower returns promise greater safety.
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Copyright 2010
 

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