Investing timidly may shield you against risk... but not against inflation.
When is being risk-averse too risky for the sake of your retirement? After you conclude your career or sell your company, you have a right to be financially cautious. At the same time, you can risk being a little too cautious - some retirees invest so timidly that their portfolios barely yield any return.
For years, financial institutions pitched CDs, money market funds and interest checking accounts as risk-devoid places to put your dollars. That made sense before the Federal Reserve took interest rates down to historic lows. As the benchmark interest rate is now negligible, these conservative options offer you minimal potential to grow your money.