So often my conversations surround the potential of principal loss when it comes to investing. Rightfully so, there is no shortage of examples and studies around human beings feeling loss twice as much as the joy of gain. I don't see that topic relinquishing its top spot anytime soon.
As investors, you want to avoid being too laser focused in one area. Longevity risk for retirees and certainly purchasing power risk has come to the forefront this year. Unfortunately, there is no singular strategy to address the multitude of risks facing your finances. Generally we have to accept some risk in an area to address another. I believe I have quoted Thomas Sowell before..."There are no solutions. Only trade-offs."
This is the puzzle I work on everyday as an LPL Financial Advisor. Discussions with people like you to prioritize which risks I need to focus on and to what extent, and what strategies address those concerns.
Have a great week,