Risk is an essential part of investing, and I want to say right off the bat that it is a GOOD THING! We’re conditioned to understand the word risk as a negative, but in today’s show, I want to reinforce the exact opposite. Plus, I chat with my friend Nick Lincoln of Values to Vision about his strong views on the idea of capacity for loss.
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New Accumulators – Risk Tolerance & Capacity For Loss
Yep, risk is something you’re going to need to get to know about if you’re going to have any success investing. In fact, not only are you going to need to get to know it, you’re going to need to embrace it, welcome it like a beloved family member who brings you epic presents. Weird metaphor, but you get the idea.
So let’s cosy up to risk and find out more about it, and then we need to slay a particularly persistent dragon called Capacity For Loss which is closely linked to risk, and I’ve brought in a friend to help me do that…
Resources mentioned in this episode
Nick Lincoln's Financial Planning firm: Values To Vision FP
Nick's excellent podcast: Money Hat-Tip, or on iTunes here
Book: Adaptive Asset Allocation by Butler, Philbrick and Gordillo
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