Many investors today are protecting their wealth by investing in cash or bonds, settling for lower returns in order to feel 'safe.' Investors don’t realize that safe investments contain hidden and unexpected risks. Thus, while these investments may feel comfortable today, they are likely to grow more costly moving forward. In fact, changing economic factors such as rising interest rates, inflation and taxes can negatively impact long-term returns, leaving investors with far less than they thought.
Doris Meister, President of U.S. Markets in the Tri-State for BNY Mellon Wealth Management, discusses what comfort may cost investors and identifies what steps investors should be taking to ensure they reach their long-term goals.
For more insights on this topic, download the Cost of Comfort article.