Understanding Investment Returns

Investment returns vary by asset class. Historically, stocks have returned about 10% annually, bonds 5-6%, and real estate 8-10%. However, past performance doesn't guarantee future results.

Key Investment Concepts

• ROI (Return on Investment): Percentage gain or loss on your investment
• Compound Returns: Earning returns on your returns over time
• Risk vs Return: Higher potential returns usually mean higher risk
• Diversification: Spreading investments to reduce risk
• Time Horizon: Longer time periods generally reduce risk

Investment Tips

• Start investing early to maximize compound growth
• Diversify across different asset classes
• Consider low-cost index funds for long-term investing
• Don't try to time the market
• Rebalance your portfolio annually
• Keep investment fees low