May 5, 2013
There are many types of risk when it comes to handling your money? How many can you name, and why should you care?
There are many types of risk when it comes to handling your money? How many can you name, and why should you care?
Interest rate risk, credit default risk, event risk, currency risk, inflation risk, and market risk. I should care, because no matter where my money is, there is some type of risk involved.
A beautiful answer indeed, Katherine. You said it all in two concise sentences. Let’s recap.
There is risk with ANY investment. There is NO risk-free investment once you realize how many types of risks are out there. Identify each investment with the different risk components (many times there are more than one) and then decide in a rational objective way, what investment will serve your needs best going forward. As always, consider your time horizon, goals, and risk tolerance as you access each investment. Great job, Katherine!