10 Questions to Ask Before Investing Your Money

1. What Are My Financial Goals?

Before investing, be clear about why you’re investing. Are you saving for retirement, generating passive income, building long-term wealth, or preserving capital?
Your goals will determine your investment strategy, risk tolerance, and time horizon. For instance, long-term investors might favor private real estate or equity funds, while short-term goals may require more liquid assets.

2. How Much Risk Am I Willing to Take?

Every investment carries some level of risk. Understanding your risk tolerance helps you make smarter decisions. Ask yourself can you handle short-term market fluctuations, or do you prefer stability and consistent income?
Investments like private real estate funds may offer lower volatility compared to stocks, but they’re less liquid. Knowing your comfort level helps you choose wisely.

3. What Is My Time Horizon?

Your investment timeline matters. Short-term investors (less than five years) may need quick access to funds, while long-term investors can take advantage of market cycles and compounding growth.
Private real estate or equity funds typically suit investors with a longer time horizon who are willing to wait for steady appreciation and income.

4. Do I Understand the Investment?

Never invest in something you don’t fully understand. Before you commit, make sure you know:

• How the investment works

• What drives its returns

• What risks are involved

• How and when you’ll receive returns

At Kailman, we believe transparency is key investors should always feel confident about where their money is going and how it’s being managed.

5. Who Is Managing My Investment?

The experience and track record of your investment manager or fund sponsor can make all the difference. Research the company’s history, performance, and philosophy.
For example, firms like Kailman bring decades of real estate and investment management expertise providing investors with professional oversight and access to opportunities typically unavailable to individuals.

6. What Are the Fees and Costs Involved?

Every investment comes with fees whether management fees, transaction costs, or performance-based expenses.
Understanding these costs upfront ensures there are no surprises and helps you calculate your true net returns. Transparency about fees is a sign of a credible and investor-focused firm.

7. How Will This Investment Fit Into My Overall Portfolio?

A smart investment complements your existing portfolio. Ask how the new investment affects your diversification and risk balance.
For example, if your portfolio is heavily weighted in stocks, adding private real estate could provide stability and income potential that balances market volatility.

8. What Are the Potential Tax Implications?

Taxes can have a significant impact on your returns. Some investments, like real estate funds, offer tax benefits through depreciation and cost segregation.
Consult with your tax advisor to understand how each investment affects your overall tax situation and how you can structure your portfolio for efficiency.

9. What Is the Exit Strategy?

Before investing, always ask: How and when can I access my money?
Some investments, like publicly traded securities, are highly liquid. Others, like private real estate or private equity, require longer holding periods.
Understanding the exit strategy helps you plan around your financial needs and ensures your money isn’t locked away unexpectedly.

10. What Are the Potential Risks?

No investment is risk-free. Market fluctuations, economic conditions, interest rate changes, and management decisions can all affect performance.
Ask for full disclosure of potential risks and ensure that the investment’s potential return justifies them. Responsible investing means being prepared for both the upside and the downside.

Final Thoughts

Smart investing starts with asking the right questions. By understanding your goals, risk tolerance, and the details behind each opportunity, you can make informed decisions that align with your financial objectives.

At Kailman, we believe that clarity builds confidence. Our goal is to help investors make informed, strategic choices that create long-term wealth through professionally managed private real estate investments.

If you’re ready to take the next step in your investment journey, connect with Kailman today to explore opportunities that fit your goals and risk profile.