Our Finance Guide
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
Our Finance Guide
No Result
View All Result
Home Investing

The Risk of Not Taking Risks When Investing

admin by admin
December 22, 2021
in Investing
0
The Risk of Not Taking Risks When Investing

The discipline to save a portion of your salary is admirable. The thought of any of that hard-earned money being lost can be a hard pill to swallow. But this is exactly the risk that you are taking when you invest your funds in the stock market. The possibility of the economy crashing or an unforeseen downturn can make some physician investors hesitant about market exposure. So, would it be better to just keep your savings in low-risk vehicles such as CDs and money market accounts? Financial advisors overwhelmingly advise investors that not taking risk is a risk in and of itself.

Playing it safe can be just about the most dangerous thing you can do, as Nicholas Cage reminds us in Moonstruck. Investing is not a romantic comedy, but if it were, he would be spot on. Although there is no guarantee as to the rates of return from the stock market, NerdWallet tells us that the average stock market return over the past century has been 10%. The Motley Fool gives us an even narrower average, pointing out that—from 2011 to 2020—the annual stock market return based on the S&P 500 was 13.9%. Both sources are quick to note that returns can wildly vary and are dependent on the specific stock holdings an investor carries. Regardless of these prudent disclaimers, the odds are in your favor regarding investing in the market. If you apply a diversified approach to the stocks you purchase, you should be well-positioned to attain your savings goals. By maintaining exposure to a variety of sectors (ie, healthcare, technology, retail, etc.) and types of companies (ie, large cap, small cap, mid cap, etc.), you can alleviate some of the risk. You should also consider asset allocation, which would mean investing in assets such as bonds, real estate, and money market accounts in addition to stocks.

Related articles

New To Investing? Here Are Some Common Mistakes To Avoid And Tips To Follow

Investing pioneer Charles Ellis says you’re just about guaranteed to get top returns in the stock market using this method

read more………….

 

admin

admin

Related Posts

New To Investing? Here Are Some Common Mistakes To Avoid And Tips To Follow

New To Investing? Here Are Some Common Mistakes To Avoid And Tips To Follow

Millions of Americans have started investing during the pandemic. And while the market has started to get a bit wobbly lately, stocks are still near all-time...

Investing pioneer Charles Ellis says you’re just about guaranteed to get top returns in the stock market using this method

Investing pioneer Charles Ellis says you’re just about guaranteed to get top returns in the stock market using this method

Charles Ellis is an investing pioneer, having founded financial-consulting firm Greenwich Associates in 1972 and written an early defense of index investing, “Winning the Loser’s Game,”...

investing strategy crushes the stock market without examining a single financial metric

Stocks Slide, Oil Dips as Fed Eyes Taper by Year-End

Wall Street ended the day lower on Wednesday, after meeting minutes showed U.S. Federal Reserve officials split on when to ease back on economic stimulus, while...

J.P. Morgan Online Investing Raises the Bar on New Account Rewards

Secrets of Sustainable Investing

Investors today hear a lot about ESG, or environmental-, social- and governance-based investing. Is that different from socially responsible investing or values-based investing? No, it is just...

When it comes to ESG investing, prospectus language often can be misleading: Report

When it comes to ESG investing, prospectus language often can be misleading: Report

What’s in a name? Not as much as investors may assume when it comes to ESG (environmental, social and governance) mutual funds and exchange-traded funds. “Right...

Next Post
These Borrowers Keep Getting Left Out Of Student Loan Relief

These Borrowers Keep Getting Left Out Of Student Loan Relief

It’s unlikely the monthly child tax credit will be extended next year, which may ‘substantially’ increase child poverty

It’s unlikely the monthly child tax credit will be extended next year, which may ‘substantially’ increase child poverty

Here’s How to Get up to $250 in Cash When You Need it — at 0% APR

No Result
View All Result

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

RECOMMENDED

Uncategorized

14 Best Personal Finance Podcasts to Teach You About Work, Money & the Economy

Uncategorized

Your Withdrawal Rate In Retirement Will Go Down In A Bear Market

CATEGORIES

  • Credit Cards
  • Investing
  • Loans
  • Tax
  • Uncategorized

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

© 2021 Our Finance Guide, All Rights Reserved.

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing

© 2021 Our Finance Guide, All Rights Reserved.