Best Investment For Growth

If you are looking for growth, I would consider small caps. These are companies that are less than $ 2 billion market value. Historically, stocks of small cap value was the best performance over time.

You should only do this if you can handle a little risk and you have plenty of time before retirement. If you do not high risk tolerance, you do not want to invest in small caps. This is because it can be a volatile period. For the same reason you should only do if you have time to recover from temporary or permanent losses.

The only exception to this is if you have a surplus of investment capital. This is money that is not necessary. For example, if you have 10 million sitting in a bond fund and only need $ 60,000 per year for living expenses, is likely to have excess capital. But if only we will reach retirement with just, no. See how it works?