What does investment risk mean to you? For many people, it's simply the risk
of losing principal when the value of their investments drop. To help lower this
risk, some investors reduce their holdings in those investments, such as
stocks, whose value will constantly fluctuate. But is this a good idea?
Actually, such a move can have negative consequences. For one thing, stocks
provide more long-term growth potential than other financial assets —
including bonds, Treasury bills, and certificates of deposit (CDs) — and you
will certainly need this type of growth to help achieve long-term goals such as
a comfortable retirement. However,just as importantly, even if you minimize
your exposure to stocks and focus on other investments, you will still discover
that all investments carry some type of risk.
B Y A N T H O N Y C R I S T I A N O, R B C W E A LT H M A N A G E M E N T - U S
96 VUENJ.COM
