How Risk Averse Are You? Here Are The Best Ways To Find Out?

All of the recent hype surrounding Gamestop, cryptocurrency, non-fungible tokens (NFTs), and meme stocks made me question – is anyone risk-averse anymore?

[{"selector":"#anim-57d8c66a-f979-426d-8044-7e4a75ec2904","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-17b14089-d229-4c6b-b8b6-743d9af9438c","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

Does anyone value consistent returns over the 50/50 gamble to win big or lose it all? Of course, I know the answer is “yes.”

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It felt like a good time to reexamine why I’m passing on these types of investments in the first place – because of the risk they carry.

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According to Merriam Webster, the definition of risk is the “possibility of loss or injury.”

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In this case, when dealing with the world of personal finance, we will focus on the first three words – the possibility of loss. Specifically, financial loss.

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Risk aversion is defined as avoiding risk. Pretty straightforward.

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Understanding your level of risk aversion is a valuable step in ensuring you build an investment portfolio that suits your needs

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Be aware of the seven deadly sins of investing, and take steps to reduce risk. After all, personal finance is… personal.

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Your goal should be to minimize that investment risk while still seeking the best possible outcomes on your investments.

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How Risk Averse Are You? Here Are The Best Ways To Find Out?

All of the recent hype surrounding Gamestop, cryptocurrency, non-fungible tokens (NFTs), and meme stocks made me question – is anyone risk-averse anymore?

Does anyone value consistent returns over the 50/50 gamble to win big or lose it all? Of course, I know the answer is “yes.”

It felt like a good time to reexamine why I’m passing on these types of investments in the first place – because of the risk they carry.

According to Merriam Webster, the definition of risk is the “possibility of loss or injury.”

The Definition of Risk

In this case, when dealing with the world of personal finance, we will focus on the first three words – the possibility of loss. Specifically, financial loss.

The Definition of Risk

Risk aversion is defined as avoiding risk. Pretty straightforward.

Risk Averse Definition

Understanding your level of risk aversion is a valuable step in ensuring you build an investment portfolio that suits your needs

Risk Aversion: Why it Matters in Personal Finance

Be aware of the seven deadly sins of investing, and take steps to reduce risk. After all, personal finance is… personal.

Risk Aversion: Why it Matters in Personal Finance

Your goal should be to minimize that investment risk while still seeking the best possible outcomes on your investments.

Risk Aversion: Why it Matters in Personal Finance

Swipe Up To Read More

Read More