The Value of Taking Risks
/
It may seem like an easy decision to invest in guaranteed return investments when rates are high, but it’s important not to lose sight of inflation. The objective with investing is to increase purchasing power through earning at a rate higher than inflation. If inflation is, say, 5% but interest rates are also 5% then the real interest rate is 0% and there is no increase in purchasing power. Increasing purchasing power can often involve taking on some level of risk. Try the tools below to learn more about the value of taking risks.
