investing

5 investment risks and how to manage them

Investing » Risk Tolerance » 5 Investment Risks And How To Manage Them

People view risk differently
Previous
1 of 7
Next
People view risk differently © Ivelin Radkov/Shutterstock.com

People view risk differently

Risk means different things to different people.

They may characterize themselves as aggressive or conservative when it comes to investment risks, without understanding how that pertains to their holdings. For instance, investors think putting all their money in bonds might make them conservative, but if interest rates rise, their bonds will surely lose value.

"People talk about their risk tolerance, but when you change the question to what's their loss tolerance, they answer differently," says Jeremy Kisner, senior wealth adviser at Surevest Wealth Management in Phoenix and Las Vegas. "A lot of people don't understand risk."

Your age plays a role in the investment risks that you can tolerate, and even what you should worry about. For younger investors, who have many years to grow their nest egg, volatility is their concern. Older investors, who are hopefully out of the money-generating stage and in the preservation stage of investing, have to contend with inflation and interest-rate risk.

From longevity risk to interest-rate risk, here is a look at five investment risks and how people of every age face them.

Compare certificate of deposit rates at Bankrate.com.

Previous
1 of 7
Next

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Mom earns little from savings

Dear Senior Living Adviser, My mom lives on her Social Security income just fine but has around $100,000 sitting in a savings account! She does not want to take any risk. Any ideas? -- Deb Depositor Dear Deb, It's great... Read more

advertisement

Blog

Sheyna Steiner

401(k)s: Too many stocks or not enough?

Americans are shoveling more into 401(k)s now than ever before but some people may be keeping too much in equities, Fidelity Investments reported last week.  ... Read more

Partner Center
advertisement

Connect with us