Wondering if it’s a good investment? It depends!

And on a lot of variables—but there is a place to start. All investments at their core are either 1) an asset that potentially increases in value, or 2) a loan you make to someone that earns you interest.
Get answers to some key questions:

• How liquid is this investment, i.e., how quickly and easily can I get my money out of this investment? Is there a penalty period? What are the penalties? When I sell it are there plenty of buyers?

• What is the complete cost of the investment? Is there a fee to purchase? To sell? A management fee? A commission? Account fee?

• What are the risks? Financial folks like to assign opaque names to different types of risk, but it isn’t that hard to explain. What is the chance my bond (loan) won’t be repaid? How strong is the business whose stock I am purchasing? What might happen to this investment if the economy goes into a recession (or a boom?) What happens if interest rates go up or go down?

And finally, ask yourself: What is my goal and does this investment help meet it?

ElizaBeth Kelly, commonsense financial consulting, can be contacted at 719-684-3293 or through www.brecek.com/ElizaBethKelly. Securities offered through Brecek & Young Advisors, Inc. Registered Investment Advisor/Broker-Dealer