http://moneymerc.com/2008/12/09/whats-your-risk-tolerance/ a personal finance blog dedicated to little finance decisions with big impact Sun, 31 Oct 2010 02:27:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://moneymerc.com/2008/12/09/whats-your-risk-tolerance/comment-page-1/#comment-163 How will you invest now? | MoneyMerc Wed, 10 Mar 2010 03:53:58 +0000 http://moneymerc.com/?p=41#comment-163 [...] events of 2008 and 2009 provided a rare chance to take a real look at your risk tolerance.  Did you end 2007 saying “I’m young so I’m an aggressive investor and can [...] [...] events of 2008 and 2009 provided a rare chance to take a real look at your risk tolerance.  Did you end 2007 saying “I’m young so I’m an aggressive investor and can [...]

]]> http://moneymerc.com/2008/12/09/whats-your-risk-tolerance/comment-page-1/#comment-87 Alex Sun, 14 Dec 2008 21:44:33 +0000 http://moneymerc.com/?p=41#comment-87 Interesting viewpoint - this goes along the lines of "if it ain't broke, don't fix it". However, a year or two ago I read about another tactic in a business book or maybe WSJ, which resonated with me: "if it ain't broke, then make it better". The reasoning being, the time when something is working is exactly the time when you have the ability to think long term, fine-tune, and improve. When you are hanging on by a thread, it's hard to think long term and make good decisions. I still totally agree that there is no reward when there is no risk, and that if you want to change your situation you need to take risks. Interesting viewpoint – this goes along the lines of “if it ain’t broke, don’t fix it”. However, a year or two ago I read about another tactic in a business book or maybe WSJ, which resonated with me: “if it ain’t broke, then make it better”. The reasoning being, the time when something is working is exactly the time when you have the ability to think long term, fine-tune, and improve. When you are hanging on by a thread, it’s hard to think long term and make good decisions.
I still totally agree that there is no reward when there is no risk, and that if you want to change your situation you need to take risks.

]]> http://moneymerc.com/2008/12/09/whats-your-risk-tolerance/comment-page-1/#comment-86 Ice Cream Melts Wed, 10 Dec 2008 17:04:37 +0000 http://moneymerc.com/?p=41#comment-86 I look at risk in the following way: If you are happy with your life and comfortable then your risk tolerance should be low and your investments should be extremely stable. If you are not happy and not comfortable then your risk tolerance should be high. Without risk there is no reward. If you want to change your situation then you need to take risks. Also note that the term “investment” is broad. It can be in the form of time, money, sacrifice, etc. I look at risk in the following way: If you are happy with your life and comfortable then your risk tolerance should be low and your investments should be extremely stable. If you are not happy and not comfortable then your risk tolerance should be high. Without risk there is no reward. If you want to change your situation then you need to take risks. Also note that the term “investment” is broad. It can be in the form of time, money, sacrifice, etc.

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