What makes a good return on Your Investments?
For the individual investor, this balance is all the more important. In order to determine a good return on investment, investors have to keep a realistic idea of what the short is about.
One of the main reasons new investors lose money is because they chase after unrealistic rates of return on their investments, whether they are buying stocks, bonds, mutual funds, real estate, or some other asset class.
The first thing we need to do is strip out inflation. When we do that and look through the data, we see the rate of return varies by asset types like Gold, Real estate, etc.
In order to evaluate returns on this type of investment, you have to understand the difference in the level of risk you take when investing in stock versus investing in a stock index fund..
Be cautious about buying only for high yield investments. There is no such thing as high returns with low risk. Better to earn moderate returns than swing for the fences.
Investments must be chosen with the main goal in mind: safety, income or growth.