Investment Tidbits 3
When we ask 401(k) participants how much money they want to make with their investments, they always say “As much as I can.” Everybody thinks they would love to be ultra aggressive. Who wants to make three percent per year? Everyone wants to make 15 percent, but most don’t understand the amount of risk they may have to take to get 15. This is where participants get into trouble. You have to think, not in terms of how much you are willing to make, but how much are you willing to lose. That’s the more important part of the equation. Determine a percentage of your assets that you can lose and still be able to stick with the program.
For more information on investing, contact Rogers Wealth Group.