Risk, it means different things to different people. If you value your family. If you value keeping your family safe and properly sheltered, then the word risk isn’t something you take lightly. And yet when asked about money and investing objectively or for one’s objectives, it’s often phrased as something like: “I want capital appreciation and no risk.”
Great.
The whole idea of investing is to defer gratification, saving ‘til it hurts. In other words, you need to work. And yes, to invest in something that will help you accomplish your goals. Goals that align with your risk tolerance.
Unfortunately, that isn’t how it always works in the real world. Investors often invest in what they “know” will go up. And when it doesn’t, they scream the loudest because it didn’t go their way.
That’s life.
If you value your peace of mind, ask yourself or your investment manager if your investment portfolio matches your risk tolerance (or lack thereof).
Action Line: When you want to discuss your risk tolerance, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
