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Return on Sleeplessness

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading return on sleeplessness Weekend reading return on sleeplessness

Weekend Reading

You’ve likely heard the term “return on investment”, but what about a concept called "return on sleeplessness"?

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This is a measure to highlight the emotional cost of high-risk investments and the volatility that comes along with them. While high returns are attractive, they often come with emotional discomfort and anxiety, particularly during market downturns.

Key takeaways: To minimize your investment “return on sleeplessness”, it’s vital to evaluate your tolerance for stress when choosing investment strategies. A diversified and balanced investment strategy might offer you greater peace of mind than chasing higher returns with greater risk. Bottom line? Consider whether the potential gains from risky investments are worth the potential cost to your well-being, and keep in mind Warren Buffett's advice to avoid risking what you need for something you don't.