Beware the High-Yield Siren Song
You may have heard that in the investment world, risk and reward are inextricably linked. While there are few rules of thumb for investing that hold much water, the risk-reward adage is one that’s best learned by everyone.
But there’s more to it than that. High risk does not guarantee high reward. Nor does low-risk mean “no risk.” Too often, people tend to chase after a potentially high reward while ignoring the risk side, and are surprised when the results don’t pan out.
In this week’s Lucia Capital Group Weekly video, our “Professor” Rick Plum, CFP® talks about the dangers of “chasing yield,” and why forces beyond your control may unexpectedly create more risk than you’re willing to tolerate.
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