Robert should ask himself the following questions before investing the $10,000 he inherited:
- How am I protected as an investor?
- What taxes will I have to pay on this investment?
- How do the risks compare to the potential gains?
- What are the chances that the investment will fail?
In finances, an investment is defined as the purchase of an asset, with the idea that, in the future, the asset will be sold for a higher price than the one of the purchase, creating a profit. The questions established before would help Robert to decide whether or not an investment is a good option for his personal case.
