Section 5.1

The Riskiest Bet

When investors talk about the “risk-free rate,” they are talking about government securities such as savings bonds.  If you buy and hold these bonds, you will be earning just a little over what you would make sticking your cash in a savings account at your local bank.  One of the primary reasons that I introduce this kind of risk very early on is to convince you that you need an investment plan that extends far beyond your local bank if you want to retire in relative comfort and financial security.


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Last Updated: 6/25/2018