Risky Business: How to Let Risk Work in Your Financial Favor

THE BIG THING I WANT YOU TO KNOW:

Playing it safe isn’t a financial strategy; it’s a mantra that’s most applicable when deciding to skydive, swim with sharks or getting a new girlfriend’s name tattooed on your body. A healthy amount of risk in your portfolio is the difference between driving yourself to distraction and living your life.

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No one ever met their financial goals by playing it safe all of the time

I’m here to tell you to forget all that jazz because a healthy amount of risk is a good thing!

If you had the choice between losing money and saving money, my guess is that you’d elect to save money.

It’s never fun to lose money. Heck, the entire gambling industry is built on a principle that tricks you into thinking you’re having a good time while the house is robbing you blind.

But when it comes to your financial strategy, there’s NO GROWTH WITHOUT RISK.

It might go against all of your natural instincts, but resist the urge to run for higher ground at the first whisper of market instability. And even if you’re headed into retirement (or already there) a certain portion of risk injected into your portfolio could translate to massive gains.


But when it comes to your financial strategy, there’s NO GROWTH WITHOUT RISK.


make a plan and let risk work in your favor

If none of this is resonating with you, Mr. or Ms. Play-it-Safe, I have to be the one to burst your bubble because the avoidance of risk is not a sustainable financial philosophy.

I’m fully aware it’s a topic that’s preached and expounded upon (often during those intellectually stimulating dinner seminars) by those who share my job title but risk can be your friend. Don’t believe me? Ask the people who weathered the financial storm of 2008 and have seen a 300% growth in the past decade.

At Dynamic Money, we don’t avoid risk during times of volatility. Instead, we make observations on the market and exploit it for client gains based on the answers to two paramount questions:

  1. the risk you can handle

  2. the risk your plan can handle

So, you let us weather the storm for you while you whistle a happy tune knowing that your dreams are being taken care of despite economic unease.


RISK IS fundamental TO GROWTH. ONE CANNOT EXIST WITHOUT THE OTHER.


The key is reflecting about what level of risk is appropriate for you and how do you manage it in healthy ways? Unsure what to make of that? We’ll help you ponder on your answers and devise a sensible and dynamic plan.

But please don’t go to one of those awful dinner seminars, and definitely don’t be that friend that drags someone to come with you.

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How do you feel about risk? What is your response to it?

 

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