If you think risk is the chance your investment dollar will go down today, then I challenge you to ask the question “When should I take on risk?”
If you choose to put your money in a CD or savings account, you avoid the risk of any fluctuation of the principle. You do have the have the risk of interest rates. Will they be higher or lower a year from now? Five years from now? Twenty years from now? Your answer is as good as mine.
You are also taking on the risk of not reaching your goals. At 1%, about what you can earn on ‘safe’ investments today, it will take about 72 years for your investment to double. How much help is that for funding your retirement?
If you choose to instead invest in the ownership of great companies who provide great products and services to the world’s population, you have a very real risk that your investment could decline tomorrow. But what about a year from now? Five years from now? Twenty years from now?
You can take risk now, or you can take risk later. The choice is yours.