Knowledgeable investors are aware that investing in the capital markets presents any number of risks – interest rate risk, company risk, and market risk.
Risk is an inseparable companion to the potential for long-term growth. Though some risk can be mitigated through diversification, it does not eliminate the risk of loss if security prices decline. Chances are, this is a risk you were very willing to take when you started investing for your future.
Did you know? As an investor, you face another, less-known risk for which the market does not compensate you, nor can it be easily reduced through diversification. Yet, it may be the biggest challenge to the sustainability of your retirement income or other goal funding.