There are investments
that earn interest
in which our original investment
is 100% safe.
Many people view
these investments
as being risk free.
They’re NOT risk free.
There’s inflation risk,
the risk our investments
will earn less
than inflation
and we’ll lose money
by holding them
There’s always an offsetting risk.
“We can always
make a risk ever smaller.
But the cost is that
we will increase
other risks.
Please don’t avoid
appropriate caution.
It matters to you
and
to the community.
But seeking reassurance
and peace of mind
by trying to drive
risk to zero
doesn’t get you
either one of them.”
Know the offsetting risk.
There IS one.
And don’t try to drive
total risk
to zero.
That’s an impossible task.