Good morning Dinks. Let me ask you a question…how much risk are you willing to take in order to receive a substantial reward? I guess your answer will depend on your comfort level with risk as well as how badly you want a big reward.
If you are really hoping for a big reward then you are most likely willing to place your entire bet on the line and hope to roll a 7 or 11. However, if you prefer to take your time to achieve your goals because making a lot of money in a short period of time is just too risky for you then you may only place the minimum bet on the pass line.
The question about risk applies for both your investment portfolio and your life. If you like to take risks with your money maybe you don’t like to do so in other aspects of your life, maybe it’s the total opposite or maybe you like to take risks with both. Some people are just risk takers in general, they like to gamble with their money and they like to take gambles in their life. I wouldn’t say that I am either type of those kinds of people because although I like to travel and try new things I definitely wouldn’t say that I am a risk taker.
If you had to choose between your money or your life…
Which one would it be?
If you could only pick only one to be adventurous with, which one would it be? I have clients who choose to take risks in their life because if they don’t live life to the fullest there is no point in having money. However, if I had to pick one it would probably be the opposite. I would rather gamble with my money than take a risk with something dangerous in my life. I am afraid of heights so bungee jumping or diving out of a plane just doesn’t appeal to me.
I would someday like to learn to surf, but I am afraid to be eaten by a shark so that probably won’t happen.
I would much prefer to take risks with my money than within my life, but even that is a major overstatement. When I am in Las Vegas at the craps table I never bet more than my original investment, so if I started with $40 and won $300 I would never be able to bet the entire $300 and roll the dice because the risk is just too much for my liking.
I also wouldn’t put my money into high risk investments such as real estate developments and start up companies. I am a little bit nervous about buying into investments that are a crap shoot and could go either way – the thought of winning a lot intrigues me, but the thought of losing a lot makes me sick to my stomach.
I am a balanced investor when it comes to my portfolio and I am mostly vanilla with a little bit of hot pink when it comes to my lifestyle.
Which one are you?
Photo by woodleywonderworks
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
I’m probably somewhat similar to you, but maybe a little more aggressive with investments. I don’t get crazy at all, but I have most of my retirement money in stock mutual funds, with healthy exposure overseas (not that that’s necessarily been the best place, but it’s a marathon…). But I’ve got plenty of time.
I certainly don’t try to get home runs – base hits will do the trick for me.
And I’d also like to surf (even planning to give it a try in the next few months) but I’m pretty scared of sharks too. It seems like there might be ways to do “adventurous” stuff with less risk? I don’t know anything about sharks, but maybe surf when/where sharks aren’t frequently hanging around, even though it means you might not get the biggest waves? I can’t handle the biggest waves anyway… I like to mountain bike, which might be adventurous to some, but I don’t go too fast anymore and I carry a bunch of stuff just in case it starts snowing or I break down. There’s nothing wrong with moderation…
I’m not much of a risk taker at all. My most dangerous life moments are climbing things that I know I will have trouble getting down from, but working it out. I also enjoy video poker and Pai Gow. And money-wise, I am a target date mutual fund kind of girl.