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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