How to tell if an investment is right for you
Edward Jones’ Mona Mahajan joins TheStreet to discuss what you should be asking yourself before you make an investment.
There are so many different factors that could play into whether or not you should make a certain investment. But according to Edward Jones' Mona Mahajan, there's always one question you should ask yourself before you pull the trigger.
Transcript:
Mona Mahajan: The first and foremost thing you want to ask yourself is "what is my risk profile and tolerance look like." If you're closer to that retirement age, perhaps you are - you don't need or don't want to go all in on high growth equity profiles, equity type investments. You want to balance portfolio with a little bit more fixed income with bond investments to complement some of those higher growth and higher risk parts of the market.
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Now, if you're younger in your investment career and perhaps you have either inherited some money or have built up a nice early nest egg and you have some time to really let that grow with a little bit higher risk tolerance, then you have a different profile. So really the first thing you want to ask yourself is, what is my investment risk profile. Where how much time do I have in the market and what are my goals longer term that I want to achieve with that financial success I gain.
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