How to assess the big portfolio risk factors, including falling short and not diversifying properly.
Risk at the portfolio level takes many forms. There's the risk that you won't meet your financial goals. There's the risk that you aren't taking on the risk you should because you don't have the tolerance--or, conversely, that you're taking on more than you should given your proximity to spending what you've invested. There's the risk that your psychological weaknesses are getting in the way of investing success.
As of this writing, the yield on a three-month Treasury bill--often called "the risk-free rate"--is about 0.22%. Assuming rates remain that low, $10,000 saved today will be worth ... wait for it ... $10,681 in 30 years.
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