To achieve high dollar returns on your investments, you generally have to give up some level of safety. Here's why:
1. Risk and return are closely related in the world of investing. Higher returns typically come with higher risks. If you aim for high dollar returns, you often have to take on more risk by investing in assets that have the potential for greater returns but also higher volatility.
2. Safer investments, like bonds or savings accounts, usually offer lower returns but come with less risk. If you prioritize safety over high returns, you may need to accept lower potential earnings on your investments.
3. By giving up some safety and opting for riskier investments such as stocks or other assets with growth potential, you open yourself up to the possibility of experiencing higher returns. However, it's essential to remember that with increased returns comes an increased risk of losing money as well.
4. Therefore, in the pursuit of high dollar returns, you generally need to be willing to accept a higher level of risk and potentially give up some safety that comes with more conservative investment choices. It's a trade-off between risk and reward in the world of investing.
