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What are the risks involved in long-term savings?

Curious about long-term savings

What are the risks involved in long-term savings?

Investing in longterm savings carries risks, as with any investment. The main risks involved in longterm savings are:

1. Market risk: The value of your investment may fluctuate due to changes in market conditions.

2. Inflation risk: Inflation can erode the value of your savings over time, reducing your purchasing power.

3. Interest rate risk: Changes in interest rates can affect the value of your investments.

4. Credit risk: There is always a risk that the issuer of the investment may default, which can result in a loss of principal.

It is important to understand the risks involved in any investment and to have a welldiversified portfolio to help mitigate these risks. Consult with a financial advisor to determine the level of risk that is appropriate for your investment goals and risk tolerance.

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