Is Rate of Return on Investment at 8 Percent Annually Reasonable?

Posted by Guest Author under Investing on July 6, 2016

Is 8 percent rate of return on investment per year good enough? What return on investment rate should be my goal every year to ensure that I am getting closer to my financial goal? Investing is rewarding. You can aim for higher return if you want. Aiming for high ROI is too risky and it take patience to acquired investing skills to get high return on investment.

Most of the time, those investment offers that promises high return are scam and too risky. Why not aim for 8 percent return on investment. 8 percent rate of return on investment is easy to achieve especially if you invest in a high risk types like stocks, mutual fund equity, real estate and business.

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There are low risk investments that can consider “long term investments”. But, when you invest in long term, do you think low risk types are the best choices? We agree that “risks are always proportionate to the reward”. If you invest long term, that’s also risky. You need to calculate return on investmentevery year. Analyze the investment if it is worth trying.

Is 8 Percent Rate of Return on Investment Annually Reasonable?

TrendShare.org share about the reasonable rate of return on investment. Definitely, their advice is true and I agree with them;

A good return on investment is 15% annually. That’s healthy. That’s reasonable. (It’s aggressive, but it’s achievable if you put in time to look for bargains.) You can double your money every six years with 12% after taxes and inflation. [1]

Is Rate of Return on Investment at 8 Percent Annually Reasonable

Image Credit: SmSm via Flickr CC 2.0 ~ 8-Ball

Getting More than 8 % Rate of Return on Investment Annually

The secret is investment management. What is investment management? It is just not about analyzing the risks but keeping the required or target rate of return on investment is another story.

You need to keep getting your target rate of return on investment to achieve your financial goal. Example, if your investment goal is to double your money in 5 years, you need to get at least 14.4 percent every year. How do I know that you need 14.4% to double your money in 5 years? By using the rule of 72, knowing the exact rate of return on investment per year to double the investment is simple.

Source: [1] TrendShare.Org

If I were you I will aim for a rate of return investment higher than 8 percent. This is to include the inflation rate, taxes, charges and fees that occurs. It is important that before you make an investment decision, you need to always ask yourself if the investment will help you achieve your gal by looking and analyzing the possible return on investment.

What about you? What is your ideal rate of return on investment? 8 percent or higher? From which types of investments you usually get 8 percent ROI? Stocks, mutual funds, business, forex or real estate? Leave your opinion in the comment box,

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