With the rising cost of living, it’s imperative that we invest. And, obviously, when we invest our hard-earned dollars, we want to generate high returns while enduring little risk.
Well, to a point. In terms of returns, there are better low-risk investments than others, but it is definitely still true that the higher return you want, the more risk you’ll have to accept.
But as you near retirement, or if you’re saving for your high school senior’s college fund, your appetite for risk drops precipitously. You simply cannot afford to see a huge drop in the market right before you need to begin withdraws.