12 Characteristics of the Ideal Investment

There are many aspects to what makes an ideal investment (I have listed some of them below). The five most important are discussed more in depth here. For a quick overview of what you should think about keep on reading!

What Makes the Ideal Investment?

  1. RISK: Do you want risk involved in your account? Is it okay if you lose the money?
  2. GUARANTEES: Do you want guarantees offered to protect your money?
  3. PENALTIES: Are there fees and/or penalties for using or withdrawing your money before a certain date?
  4. LIQUIDITY, USE AND CONTROL: If you need your money, can you get to it easily and quickly?
  5. PROTECTION: Is your money protected from creditors and lawsuits? (This varies from state to state)
  6. LEVERAGE:  Does your account allow you to create the most wealth from the least amount of money?
  7. TAX-ADVANTAGED: Does your money grow tax-advantaged?
  8. TAX-FREE: Is your money tax-free upon distribution?
  9. TAX-DEDUCTIBLE PAYMENTS: When you put money in, are your payments tax deductible?
  10. COLLATERAL: Can your money be used as collateral for a loan if necessary?
  11. DISABILITY BENEFITS: If you become disabled does someone continue to put money in?
  12. WEALTH TRANSFERS: Will your money transfer to your heirs tax free?

Keep in mind that these are very basic questions. You should put much more thought into your investments. Check out a more in-depth description of these topics here.

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