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.
What's a little market risk when the real danger lies in living
longer than you have money enough to support you?
A pocketknife, a book of matches and an axe
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.
No guts, no glory. The secret to successful investing is balancing
the scales of risk and return.
Just how risky an investor are you? Put yourself in these
scenarios and predict how you would react.