We Design Your Financial Destiny


(Serious) Words of Wisdom : "The stock market is a giant distraction from the business of investing." ~ John Bogle

Wish to become rich? Try these financial tenets (3 of 4)

3. Avoid safety. Protect Risk.

Most of us have aversion to risk. It evokes fear of loss. Therefore, the natural tendency is to look for safety. However, there is a trade-off between safety and returns. If you prefer safety, you have to be content with nominal returns.

Without risk, there’s going to be no riches.


In fact, 100% safety is also a myth. Keeping the money under your mattress or in a bank may appear safe. But don’t forget — inflation will erode its value day-by-day. Isn’t this also a form of risk? Therefore, there is no such thing as ‘no risk’ or ‘zero risk’.

Besides, just as a coin has two sides to it, risk too has two sides i.e. threat and opportunity. But there is one key difference between them. Unlike the coin, risk doesn’t always have to be a 50:50 game of chance. You can suitably “control” risk to get more wins than losses.

Instead of hiding behind safe investments, you have to hide behind risk-protection tools. Just as you have safeguards against fire when cooking, you have to build safeguards for risk too when investing; to keep the losses to minimum should the things go wrong.


An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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... THREE VALUABLE TIPS ...

1. 'Stock Markets At An All-time High' Is Absolute Nonsense
All-time high at the Stock Markets
Do you believe, at current market levels, you are standing at the edge of a cliff?

 


2. Family Floater Health Policy: Insure Your Parents Separately
Family Floater Health Insurance
Wider and cheaper health cover is possible if parents are insured separately.

 


3. Herd Mentality: Why Do We Follow The Crowd? And Is It OK?
Herd Mentality: Is it good?
(Blindly) follow the crowd and your investments could suffer deep losses.