As a retiree, you probably want to hang onto the savings you’ve got. Fair enough. Perhaps you’ve even allocated the majority of your savings to stability of principal. That may be appropriate. Just remember, though, risk is not all bad. In return for a little investment risk, you may be able to reap a little more investment reward. Consider these points:

Generally, retirees’ portfolios tend to be less risky than younger savers’. Your portfolio doesn’t have decades to bounce back after a down market. So, for example, if you were an aggressive investor before retirement, perhaps you’d have more comfort as a moderate investor.

Inflation can eat up returns. Let’s say you hold most of your savings in a bank account earning a modest return. By the time you factor in inflation … for example, in the 4-percent range … you may not have gotten ahead at all.

Strong investment performance can have the unintended result of exposing you to more risk. Ian will explain.