5 Biggest Investment Risks You Face
Running Out Of Money Is A Real Risk
Whether you are 30 or 60 years old, once you retire, you will have to outlive your money if you are not careful. And this means that in the long run you have to make the saved money last.
The real benefiters in this case are the younger investors because they have an advantage over their age as well as have more time to save enough for retirement. However, in case for people nearing retirement, they'll have to restrain their lifestyle or make their investments generate more income if their spending exceeds their earnings.
One way individuals can avoid this risk is by increasing the amount of cash flow from investments that yield more on returns. In order to do that investors need to invest in dividend-paying companies or fixed-income products that has higher rates of return than what investors are currently getting.
Not Protecting Principal Hurts Over Time
People in the age group of 50s and 60s tend to focus more on growing their money and in this process take wrong decisions rather than protecting what they've made. So in order to prevent this risk they should start looking at ways to diversify their investments plans and invest in things that will produce a return but at the same time protect the principal investment. That could mean bonds, certificates of deposit, annuities or anything that pays a fixed interest rate.
Read Also: Six Easy Steps For E-Filing Your Tax Return This Year
