To me, risk is not bad. However, taking potentially big risks which have low upside gains are not worth it.
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This is not financial advice. Please consult a professional advisor.
Copyright © 2009 Achievement Catalyst, LLC
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Creating a Retirement "Paycheck"
Since retiring in 2007, we typically have withdrawn funds monthly from our taxable accounts to pay for living expenses. Last year, I decid...
Monday, August 17, 2009
Avoid Risking Catastrophic Downsides for Low Upsides
Although my career was in R&D, I worked in enough plants to be an honorary manufacturing worker. As a result, I've learned to never do anything that is unsafe, even if the risk of danger is extremely small. The reason is that there is very little upside, e.g. a few seconds saved, versus a catastrophic downside, e.g. losing a limb or life. Unfortunately, in real life, people regularly take small risks that occasionally result is catastrophes. Here are some risks I that I like to avoid:
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