How We Define Risk

The potential of losing money by investing in the stock market has become front and center over the past several weeks. The decline in the S&P 500 index and the bigger drops in other indexes and stocks has drawn attention. It has also led to the usual chatter about what the downside volatility means and…

 

Investors Have Varied Definitions of Risk

Risk plays a pivotal role in investing, yet a universal definition is elusive. Merriam-Webster defines risk as: the possibility of loss or injury someone or something that creates or suggests a hazard the chance of loss or the perils to the subject matter of an insurance contract; also the degree of probability of such loss…

 

John Bogle on Achieving Greater Long-Term Wealth Through Index Funds

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: A Second Look at How Target Date Funds Change Their Allocations Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans (aka, defined-contribution plans). The simplicity of target date…