Investing During Recessions Investing in "Riskier" Investments

Investing for Retirement

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Choosing the right investments isn't easy. Your portfolio will be shaped by several factors, including your age, time horizon, tax bracket, and risk tolerance. All investments are subject to varying degrees of risk, but one type of risk in particular -- inflation -- is often overlooked. Inflation erodes the value of your savings over time and takes its toll on most types of investments, including those, which are considered "safe," such as money-market funds. Naturally, you want to be cautious with your retirement savings, but investing too conservatively can keep you from reaching your goals. Avoid putting all your eggs in one basket by diversifying or spreading your savings among several types of investments, such as stocks, bonds and money market accounts. Diversification may help moderate the risks inherent in investing, but diversification cannot eliminate the risk of investment losses.
Source: http://www.investorguide.com/igu-article-739-retirement-basics-retirement-planning-scared-or-prepared.html