Define your investment objectives . Mutual funds, annuities, life insurance, retirement plans, college expenses . . . This short self-assessment can help you. Determine your risk tolerance . You need to be comfortable with your investment decisions.
All investments involve some degree of risk.
Some people are more comfortable with a higher level of risk, knowing they may realize a higher return. Other people may lose sleep over the possibility of a temporary downturn in their investments. Only you can decide your risk tolerance. Here is a short self-assessment that can help you decide where you are comfortable. Develop an investment strategy .