4 Real Risks of Investing (and What to Do About Them)
Writer William Faulkner said: "You cannot swim for new horizons until you have courage to lose sight of the shore." That's an eloquent way of expressing the inherent rewards in risk-taking. In investing, the willingness to take thoughtful risks creates the opportunity for you to build wealth over time. On the other hand, if you shunned all risk, you'd keep your savings under the mattress, where it would continually lose purchasing power due to inflation.
Even so, the risk of loss may have you feeling anxious about investing, or possibly unwilling to invest at all. Moving forward with a wealth plan doesn't require you to ignore risk or the associated anxiety, however. The opposite is true. Knowing more about risk helps you insulate yourself from the worst of negative outcomes. As a starting point, here are four basic investing risks and strategies for mitigating each.
Image source: Getty Images.
Source Fool.com
