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What is risk tolerance in investing?

Risk within the context of investing is the potential for your investments to lose all of their money or simply achieve lower returns than you anticipated or hoped for. Risk tolerance is your personal comfort with uncertainty.

Are low-risk investments a good investment?

There are, however, two catches: Low-risk investments earn lower returns than you could find elsewhere with risk; and inflation can erode the purchasing power of money stashed in low-risk investments. If you opt for only low-risk investments, you’re likely to lose purchasing power over time.

What are the best low-risk investments for 2024?

For those looking to generate reasonable returns with less uncertainty, here are the 11 best low-risk investments for 2024. Safe assets are those that allow investors to preserve capital without a high risk of potential losses. Such assets include Treasurys, CDs, money market funds, and annuities.

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