Everyday, we all take risks without even thinking about it. When you invest your hard, earned money, you need to think about what you expect for your return and how much you are willing to risk to get that return.
You can stash your cash in your top dresser drawer. There's no risk involved. But, it won't grow other than when you add to it. That means it has a zero growth rate. The up side it that it's always at hand. You don't have to drive to the bank to get it or you don't have to wait until it matures to withdraw it.
You want more than a 0% growth rate? Then, decide how much you expect to make from your investments and look at the risks involved. You'll need to strike a balance between your expectations and the risks involved to achieve them. Your bank or credit account, certificate of deposits, money market funds are insured. Ask to make sure! They have a little more risk but a larger growth rate.
Over the long term, stocks often offer a better rate of return. There are more ups and downs.
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