Risks

Indi Samarajiva / Flickr.com https://bit.ly/2MbIV3Q

If you’ve made an investment, it’s likely that someone has asked you to compete a so-called “risk tolerance” questionnaire.

Is this just more paperwork, or is it something you should pay attention to?

 

The “right” answer is to say that we investment types use risk tolerance questionnaires to protect you (the investor) from putting your money in anything that has more risk than you may be willing to tolerate.

Christos Tsoumplekas / Flickr.com https://tinyurl.com/yb3qazpm

Fear is a funny thing – it often tricks us into exchanging one perceived problem for a much larger one.

I don’t know too many folks who break into a cold sweat when they get into a car to drive a few hours. But let that same person board an airplane, and they are much more likely to experience a heightened sense of fear, even dread.

 

The National Safety Council estimates your lifetime odds of dying in a car accident at about 1 in 100. For air travel, the lifetime odds are about 1 in 200,000.