8 questions to ask yourself before you invest in anything by Matt Becker on Oct 30, 2017, 1:31 PM Advertisement
 There's no shortage of investment recommendations out there. Your family members have opinions. Your friend that works for that financial company has suggestions. The internet is full of articles claiming to know what you should be investing in. With all of that input, how do you decide whether any individual investment is worth your money? You get your cynic on and you ask a lot of questions. Here are eight questions to ask yourself before investing in anything. SEE ALSO: Retiring a millionaire at 43 hasn't made me 'happier' — but it was definitely worth it 1. What are you investing for?  It's easy to hear someone talk about a particular investment and get caught up in the excitement of making a lot of money. Who doesn't love a hot tip? But it's helpful to take a step back and remind yourself what you're really investing for. Because the goal is never to beat the market or even to maximize your return. Your goal is personal. You want to retire with enough money to travel. Or you want to send your kids to college. Whatever it is, your real goal is simply having a certain amount of money by a certain date so that you can do something important with your life. Keep your focus on that goal and always remember that any investment you choose should serve that goal and nothing else.
2. How are you feeling as you consider this investment? Investing is never going to be completely emotionless. There are a lot of ups and downs and it's impossible to keep your cool through all of it. But you should, to the best of your ability, avoid making any big investment decisions when your emotions are running high. So, as you consider any particular investment, ask yourself how you're feeling. Are you scared? Exhilarated? Anxious? Confused? The stronger your emotions, the better off you are sleeping on the decision and waiting until you can think with a calmer mind.
3. Do you understand this investment?  Never invest in anything you don't understand. Seriously. Just don't. The best investments are often the simplest. Many financial professionals would like you to believe otherwise, but complicated investments typically have higher costs, lower returns, and more unintended consequences. Keep it simple. If you can't explain how the investment works in a minute or less, you should walk away.
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