Comments on: Risk: Is it worth it? http://www.fiscalmusings.com/2007/04/risk-is-it-worth-it.html Sat, 22 Nov 2008 03:19:05 +0000 http://wordpress.org/?v=2.3.1 By: frugal zeitgeist http://www.fiscalmusings.com/2007/04/risk-is-it-worth-it.html#comment-40 frugal zeitgeist Fri, 06 Apr 2007 03:47:00 +0000 http://www.fiscalmusings.com/2007/04/risk-is-it-worth-it.html#comment-40 Risk is partly a function of time. At 38, risk means more to me than it did at 22; at 50, I'm sure it'll mean a great deal more than it does now. I'm willing to take risk for reward, but my view on risk is that it needs to be a considered risk rather than a blind one. In other words, I'm not going to throw money at a risky investment just because it's the buy of the moment: at that point, it's already losing steam. I'm also not going to focus on a high-risk, high-reward investment to the exclusion of other investments: diversification has its benefits as well. <br/><br/>You know what they say about money: put it in one place and it stinks like hell; spread it around and it does a lot of good. Risk is partly a function of time. At 38, risk means more to me than it did at 22; at 50, I’m sure it’ll mean a great deal more than it does now. I’m willing to take risk for reward, but my view on risk is that it needs to be a considered risk rather than a blind one. In other words, I’m not going to throw money at a risky investment just because it’s the buy of the moment: at that point, it’s already losing steam. I’m also not going to focus on a high-risk, high-reward investment to the exclusion of other investments: diversification has its benefits as well.

You know what they say about money: put it in one place and it stinks like hell; spread it around and it does a lot of good.

]]>