Getting your money right: How to manage your fear of risk when investing

Getting your money right: How to manage your fear of risk when investing

 Dear RC, The term "risk/reward" gets thrown around often but many times people don't actually understand what it means. Understanding risk, what it means and why it matters is a cornerstone to . Before we can go any further on our investing journey, it's important to break down this topic. I always tell my clients that risk is something that can be measured by both quantitative and qualitative measures. We will get into the "quant-fun" in a bit, but first let's talk about feelings. Taking a big risk (financial, professional, personal) can be scary and thrilling at the same time. For example, skydiving is certainly a risk. You can measure it with statistics (example: a certain percentage of skydivers fall and die when they jump out of a plane) or you can measure it with other metrics. "I will be so terrified of the jump that I might die from fear." These qualitative measures are a bit more difficult to gauge, but they are still very real. When you're , it's important to know where you fall on the general risk spectrum. There are a lot of questions to answer when trying to ascertain your . Here are a