The Dangers of Chasing Yield- Episode 109
As some investors already know, there is a distinct correlation between risk and reward. The greater the potential reward for an investment, the higher the risk. On the other side of the coin, lower-risk investments tend to produce lower rates of return.
This is something that many people often forget — especially those investors who are new to the game. If you pay attention only to a particular investment’s prior performance without looking at the potential risks involved, there could be devastating consequences for your portfolio later on.
Purchasing investments based solely on their rate of return is what’s known as “chasing yield,” and it’s a mistake that can and should be avoided. Find out more from host Johnny Dean and our advisor, Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Important Information:
The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.
No client or prospective client should assume that this information, or any component thereof, serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
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