3 Money : Ten (10) Factors to consider before making an investment

There are ten (10) Important factors to consider before investing. Regardless of how persuasive the salesman is, it is essential for you to do your research and consider each of the factors listed below.

1. Capital or Cash Outlay Involved :

How much do you have to invest? Can you pool resources from other areas?

2. Risks involved

When it appears too good to be true,…100% returns in 2 months- Run

3. Investment Period

When will the investment mature?

4. Return on Investment-ROI

The rate should not be lower than Treasury/Bills (Government risk-free securities)

5. Cash flows/Liquidity

Where there are no regular cash returns, there should be capital appreciation

6. Taxation

What share belongs to the Revenue Department and the approving authorities?

7. Impact of Inflation.’

Where there is hyperinflation, convert and hold your savings to foreign currency, e.g., USD, Pounds, or Euro

8. Volatility of the Asset

How often does the price fluctuate? Stocks, Crypto. Avoid the asset or hold a minimal quantity

9. Integrity/Background of the 3rd party.

Check the promoters of the investment.

10. Litigation

Ensure no ongoing/ unresolved legal issues between the current owners or even previous owners.