Ask Dawn: Saving Vs. Investing

In my practice, I often have discussions with clients about the relationship of risk to return. One of the most common questions that I am asked is, “How can I grow my money with no/little risk?”  When it comes down to the options for a client who wants to save or grow their money but not risk the potential of loss of principal investment- there are choices. Usually, those options come with a tradeoff. Generally speaking, the more risk that you are willing to assume with an investment- the greater the potential for return. The less risk you can tolerate- the potential for return will be lower.