Stock photo of an investor making notes while observing a chart.

What is risk?

Why do we invest? _ normal answer is usually __ on the idea that __ invest to grow wealth. __ do this, we invest hard earned dollars which __ hope will provide a _ greater than what we in the first place. _ means, we are being _ for something - that _ is risk.

By investing, we are __ paid to take risk. _ can come in a of forms, but typically, more of it we _, the better the return __ get… or more accurately _, the better potential for _ we have. Investment risk in different forms, primarily:

  • Investment Losses: the risk __ losing the principal you've
     
  • Illiquidity: The risk that will not be able __ access that which you _ invested because it is _ up in that investment inaccessible to you

But there are other tied to investing, too. example, there is the _ that, because of the strategy you have used, don't have enough liquid _ to meet the goals '__ laid out for yourself. '_ also inflation risk - __ you aren't willing to _ any risk of loss __ illiquidity, you risk having _ wealth in the future _ you did today, measured in total dollars, but __ what you can buy _ the dollars you have.

Despite all the risks _ investors are plagued with, are ways to maximize _ wealth while reducing the _ you take. To do _, you need to consider of the risks discussed in the same conversation, only coming up with __ investment strategy that provides best return profile for risk of loss you taking, but also considering _ goals and needs and liquidity required to meet _. There's a lot to and the variables are all the time, that's it can be helpful __ go through a professional _ planning process, where a 3_ party, one experienced mitigating _ for investors, can help understand the risk you're _ and how to reduce __.

Contact a Wealth Advisor to get a _ understanding of the risks _ taking today!

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