Faith And Finances

Entering into the investing world with a healthy, realistic view of the various  risks is vital to a successful experience. Without some risk, there is no respectable growth. If you search online for the word risk, you’ll find: –verb. “to expose to the chance of loss.”  So, why take any risk at all? For the investor there is an expected reward for the risk taken—the growth of an investment.   In This Episode, We Look At: Some risks can be eliminated, some mitigated, and others can be taken on with confidence Liquidity Risk (not having access to your money) – can be eliminated Inflation Risk – can be mitigated Single Company Risk – can be eliminated through diversification Capital Risk – can be mitigated through: Proper Diversification Owning many asset classes that are dissimilar Including fixed income in the portfolio to decrease market volatility Volatility – Prices and values tending to fluctuate sharply and regularly   One Thing You Can Do Today to Improve Your Faith and Finances: Remember that the inv