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Is a 5% return a good investment?

Be aware that higher returns come with higher risk. Safer investments tend to offer lower returns while riskier investments offer higher potential returns. Diversifying across several different investments helps to offset that risk, but it doesn’t guarantee a return of 5%, or any specific rate for that matter. Why 5%?

Should you invest with a guaranteed return?

All things being equal (including the returns on investment), it would be better to choose an investment with a guaranteed return than one without. But most guaranteed investments don’t offer returns that beat inflation.

What is a guaranteed return on investment?

A guaranteed return on investment is the fixed rate of return that you can count on when you invest in a particular product. Most investment products involve risk. It’s rare to find an investment product that is certain to rise over time. For a long time, many investors believed that real estate would never fall in value.

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