"Risk" Is Not One-Dimensional: Rethinking How We Invest for a Lifetime

In the world of financial media, risk often boils down to one scary word: volatility. Every market dip makes headlines, every wild swing triggers warnings about impending doom, and suddenly, we're all advised to flee to the safety of cash or bonds. But as financial planners, we know better. Risk isn't a single dimension—it's a multifaceted beast that demands a more nuanced approach.

Look at the table below, which contrasts the narrow lens the media often uses with the broader risks we actually consider (and plan for) in a comprehensive financial strategy.

This isn't just theory; it's the foundation for building portfolios that align with your life, not the latest news cycle.

This table isn't exhaustive, but it highlights a key truth: While volatility grabs eyeballs, true financial security requires addressing the risks that could derail your long-term goals—like outliving your savings, inflation eroding your nest egg, or a portfolio that doesn't match your actual needs. In this post, we'll explore why one-size-fits-all advice falls short, drawing on timeless investing principles and recent market lessons. We'll also tackle a provocative question from legendary Wall Street Journal columnist Jason Zweig: Should you just buy stocks until you die?

The Allure (and Limits) of an All-Equity World

As someone who's spent years advocating for the power of patient, diversified equity investing, I can't help but cheer for the stock market's track record. History paints a compelling picture: Over long horizons, stocks have been the great equalizer, turning modest savings into meaningful wealth for everyday people. A simple glance at a century-long S&P 500 chart shows annualized returns hovering around 10%—far outpacing inflation and other assets. It's no wonder Zweig's recent article struck a chord; in a world craving simplicity, the idea of riding equities forever sounds egalitarian and efficient.

But here's where nuance enters: If only it were that straightforward. Equities aren't a panacea, and blindly holding them "until you die" ignores the very risks our table above warns about. The market rewards discipline and time, but it punishes over-activity—like panic-selling during downturns or chasing trends. Yet even die-hard stock advocates must concede: Not everyone's situation calls for 100% equities.

Consider these scenarios:

• The Bulletproof Retiree: You've got a pension or Social Security covering essentials, plus a dividend-heavy portfolio generating steady income. Your time horizon stretches to your grandkids' futures. Here, an all-equity tilt makes sense—volatility is just noise.

• The Stability Seeker: Life throws curveballs—unexpected medical bills, family needs, or simply a desire for "sleep well at night" (SWAN) peace of mind. A 10-20% allocation to bonds or cash equivalents can buffer short-term shocks without sacrificing long-term growth.

• The Complex Planner: Your income streams are a mix of rentals, side gigs, and investments. Bonds and buffer ETFs provide ballast during volatility, preserving purchasing power when stocks wobble.

Zweig's piece wisely cautions against an all-equity bet, not just for behavioral reasons (we all overestimate our stomach for drops), but because future returns aren't guaranteed to mirror the past. Valuations are stretched—the S&P 500's price-to-earnings ratio recently hit 40.5 times inflation-adjusted earnings, echoing dot-com peaks. That said, no asset class promises the moon. Bonds? Real estate? Gold? Crypto? They've all disappointed when you least expected.

The Hidden Risks No One Talks About

This brings us back to our table. Media fixates on volatility because it's visible and visceral—a 10% drop dominates the news. But as planners, we obsess over the stealthier threats:

• Sequence of Returns Risk: Early retirement drawdowns during a bear market can devastate your portfolio. A SWAN-style allocation (think non-equities like bonds or buffer ETFs) smooths this out.

• Inflation and Purchasing Power: Cash felt "safe" in 2020, but with inflation averaging over 4% annually through 2022, real returns on 3-month T-bills were negative for years—eroding wealth quietly. Even CDs lagged until late 2023.

• Underperformance and Goal Mismatch: If your portfolio chases high-flying tech but ignores your need for steady income, it's a mismatch. Tail risks—like geopolitical shocks or health events—demand liquidity and diversification.

• Reinvestment and Interest Rate Traps: Bonds bought at rock-bottom yields in 2020 delivered negative 5-year returns by mid-2025, as rates surged. Meanwhile, equities quietly doubled over the same stretch, with total returns compounding at roughly 16% annually from late 2020 to October 2025.

The lesson? Every choice carries risk. Equities bring volatility but historical growth; bonds offer stability but interest rate sensitivity. The media's volatility obsession blinds us to these trade-offs, leading to knee-jerk moves that hurt most.

Why Financial Planning Beats "Perfect" Portfolios

Good planning isn't about chasing the flawless allocation— that's a myth. It's about tilting the odds in your favor while bracing for life's curveballs. We weigh short- and long-term risks, market and non-market factors, to craft a strategy that fits you:

• Stress-testing for longevity and inflation.

• Building buffers for liquidity and emergencies.

• Aligning assets to your goals—whether that's legacy-building or worry-free travel.

This holistic approach is why partnering with a planner pays off. We're not selling products; we're curating decisions that fuel a meaningful life, however you define it.

Your Next Step: Beyond the Headlines

So, should you buy stocks until you die? Maybe—if your plan says so. But dismiss blanket advice; embrace the nuance. Review your portfolio through this multi-dimensional risk lens. If volatility keeps you up at night, or inflation worries linger, let's chat. Drop a comment below or reach out—your financial future deserves more than media soundbites.

Sources and Further Reading:

1. Inspired by discussions on comprehensive risk frameworks in financial planning literature.

2. Long-term S&P 500 data via Slickcharts and YCharts.

3. Jason Zweig's WSJ article, "Should You Just Buy Stocks Until You Die?" (October 2025, via LiveMint summary).

4. Zweig's caution on future equity returns, echoed in Morningstar's 2025 forecasts.

5. S&P 500 valuation data from WSJ (November 2025).

6. NYU Stern and FRED data on T-bill real returns vs. CPI (2020-2025).

7. Bloomberg U.S. Aggregate Bond Index performance, per J.P. Morgan and Schwab reports.

8. S&P 500 total returns calculated via YCharts (Sept 2020-Oct 2025).