Is there a specific rate of return for an investment that should set off alarm bells in your head? You know, where you think this is too good to be true or possibly fraud?
This question came up in a recent interview with an AM radio station in Ohio. It was a reminder that while we here at CNBC tend to be money geeks, the world at large wants straightforward answers.
The problem with this question is that, like most things in investing, the answer is — it depends. Different kinds of investments offer different levels of risk and as a result offer different levels of return. Stocks are considered more risky than bonds. Bonds are seen as more risky than real estate. And so on.