- What are your long-term investing goals?
- What is your investment time horizon, or how long do you need your money to last?
- How about your personal risk tolerance?
- If you currently have an investment portfolio, what is your current asset allocation—or mix of stocks, bonds, cash and other asset types?
Let’s Take a Look at Some of the More Popular Types of Assets Available to Investors
In its most basic form, an annuity is an insurance contract in which an investor pays an insurance company an amount of money called a premium, and, in return, receives a steady stream of payments over time.
Often sold as investments that can help protect assets and future income, annuities often sound like an excellent option for your retirement portfolio. But there are several unintended consequences to be aware of when buying an annuity—and they might even undermine an investor’s long-term investment goals.
When considering alternative asset types—cryptocurrencies, private equity, non-traded real estate investment trusts (REITs), commodities and many more—it is important to understand the potential risks and returns associated with them.
These alternative investments may serve a specific purpose and may add value for investors in certain situations, but they may also bring decreased investment flexibility, high fees, illiquidity or other potential issues.
Many investors find allure in the idea of steady rental income or real estate as an investment. But real estate investing can be complex with a number of potential risks and drawbacks that deserve careful consideration.
Some investors believe gold is a robust, time-tested safe haven, acting as a portfolio hedge against market declines and protecting purchasing power from inflation. Unfortunately, gold’s status may be more symbolic than anything else.