All About Risk
Fear of losing money is the biggest reason why many people wait so long to start investing. That and not knowing what they’re doing. But there’s more to risk than meets the eye.
Sure you can lose money in the stock and bond markets. Then again, you can lose your shirt to taxes and inflation. This section is designed to help you put the concept of risk in the proper perspective and then teach you strategies that the pros use to help protect investments from losing money.
Types of Risk
What’s a little market risk when the real danger lies in living longer than you have money enough to support you?
Risk Reduction Strategies
A pocketknife, a book of matches and an axe…learning to invest is similar to learning how to be a good girl scout or boy scout. Know the tools to have on hand and learn how to use them.
The Risk/Return Trade-Off
No guts, no glory. The secret to successful investing is balancing the scales of risk and return.
Test Your Risk Tolerance
Just how risky an investor are you? Put yourself in these scenarios and predict how you would react.