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Investment risk: 6 reasons to get real

Investing » Risk Tolerance » Investment Risk: 6 Reasons To Get Real

Get real about investment risk
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Get real about investment risk © Gajus/Shutterstock.com

Get real about investment risk

It's impossible to invest without risk.

You might lose some -- or all -- of your money. You might watch inflation erode your funds. You might not earn a return that's large enough to meet your financial goals.

No strategy is entirely safe.

That suggests the biggest investment risk might not be a specific calamity, but rather ignorance about the types of risks you've taken and how big they are, a mistake that can lead to larger losses and heavier disappointments.

Rather than try to eliminate risk, your awareness of risk can empower you to manage and mitigate the downsides, if and when they occur. Here are six ways risk can creep into your investing.

Review rates on certificate of deposit accounts at Bankrate.com.

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