TRANSCRIPT:

Hi Greg Vojtanek here of Fade In Financial. Today I want to talk to you about the risks of not investing in the stock market. There are two specific risks I want to discuss. One is called the Opportunity Cost. The other one is Purchasing Power risk, also known as Inflation Risk.

So the first one, Opportunity Cost, which is a type of risk of not investing in the market. So let’s say, as an example, the stock market, in ten years from now, is up 50%, five-zero. We passed up on the opportunity to make 50% over ten years. That is our opportunity cost. That is a risk that we took. So, hopefully whatever we did with our money that we didn’t invest in the stock market made more than 50% over the last ten years. That is a type of risk.

The other one, Inflation risk, also known as Purchasing Power risk, is the value of a dollar is worth more today than it is in the future due to inflation. So we will be able to buy less in ten years from now, with that same dollar, than we could today. It’s all due to inflation, also known as Purchasing Power risk.

So those are a couple of the risks that you take by not investing in the stock market. It’s certainly not everything. You should consider much more than just that. But I do hope you found this helpful. And, as always, do what’s right for you. Thanks for watching.