retirement

7 retirement investing mistakes

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Focusing on only one risk
Focusing on only one risk | Claudio Divizia/Shutterstock.com

Focusing on only one risk

Most people need to get substantial returns on their portfolio to arrive at retirement with a decent-sized pot of money. That means investing in stocks is prudent for most. However, some people believe they can get by without investing in stocks at all.

Avoiding stock market risk increases other types of risk, like the possibility of outliving your money.

"You shouldn't think of short-term (certificates of deposit) and others as being risk-free assets. If you invest in CDs, you may have a guaranteed return of capital; but you don't have what is arguably more important, which is a guaranteed return on capital," says Webb.

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