INFLATION AND INTEREST RATES OVER TIME
Stock market investments might beat inflation and interest rates over time, but you run the risk that prices might be low when you need to sell. This could result in a poor return or, if prices are lower than when you bought, losing money.
You can’t escape risk completely, but you can manage it by investing for the long term in a range of different things, which is called ‘diversification’. You can also look at paying money into your investments regularly rather than all in one go. This can help smooth out the highs and lows and cut the risk of making big losses.
Some investments can decrease in value, and you may not get back what you invested.
The stock market will fluctuate in value daily, sometimes by large amounts. You could lose some or all of your money depending on the company or companies you have bought. Other assets, such as property and bonds, can also fall in value.
Speaking with a financial advisor will give you the best chance of meeting your financial goals without losing your money, as financial advisors have a deeper understanding of investment management techniques.