Personal Money Management 101
Risk and Reward
Investment
Investing Money
page 2
page 3
page 4
page 5
Financial Planning
page 2
page 3
Risk and Reward
Investment Types
Stock Investing
Technical Analysis
Financial Statements
Real Estate
Mortgages
Pension Planning
Debt Solutions
FOREX Trading
Financial Derivatives
Tax Efficiency
Financial Advisors
Personal Finance Articles
Software & Books
Site Map
Resources on the Web
- Different investments have different levels of risk and reward.
- In investment terms risk means the degree of fluctuation - as well as the chance you might lose your money.
- Generally:
- the higher the rewards, the higher the risk.
- the longer you hold an investment the lower the risk (eg in any one year there might be a 25% chance the stock market will fall, but the chance of a fall over 10 years is remote).
- Know the risks and rewards for any investments you are considering.
- Knowing your goals means you know the degree of risk you need to accept
to fulfil them...
- if you can meet your goals with a certain level of risk, why make riskier investments?
- Know your own risk tolerance.
- Don't make any investment you are not comfortable with.
- Know also that there is a risk in non-investment,
- money kept under the mattress may be stolen by robbers, or eaten away by inflation.
Discover your risk tolerance with: