Retirement Guru: Why playing it safe with your investments is bad for your future

How taking calculated risks with your investments can lead to greater financial freedom

When it comes to investing, many are naturally inclined to stick with the “safest” options. After all, investing your hard-earned money is no joke, and the fear of loss can easily override the hope of gain. However, as with many aspects of life, playing it safe often prevents real success. And this is particularly true when it comes to building wealth through investing.

Let’s break it down using a common investment scenario — buying shares in the stock market.

Playing it Safe = False Sense of Security

Imagine you decide to invest only in the safest, most conservative stocks. These investments are low-risk and provide stable returns. In theory, this sounds like a smart strategy. However, when you account for inflation, you begin to see the hidden danger in this approach.

For example, if inflation is running at an average of 3% per year, and your “safe” investments are only yielding 2%, you’re actually losing purchasing power over time. In a world where medical expenses, housing costs, and everyday living expenses are steadily rising, simply preserving your capital…