Different Types of Risk

Different Types of Risk

When you’re talking about investment risk, most people picture market fluctuation. People with low risk tolerance might be more prone to pursue income-focused investments (as opposed to growth-focused investments) in order to avoid as much market fluctuation risk as possible.

However, market fluctuation isn’t the only type of risk to consider when it comes to your financial future. As people live longer, they experience more inflation and their income-focused investments might not grow enough to cover that rise in price.

In this video, we’ll talk about these different types of investments, their inherent risks, and the need to balance the two.