Perceived vs. real risk
PERCEIVED RISK: "Investing feels like gambling...I might lose money in the stock market"
REAL RISK: "If I don't invest, I'm 100% going to run out of money at the end of my life"
Most beginners get stuck at Perceived risk & never understand the real risk
PERCEIVED RISK: "Investing feels like gambling...I might lose money in the stock market"
REAL RISK: "If I don't invest, I'm 100% going to run out of money at the end of my life"
Most beginners get stuck at Perceived risk & never understand the real risk
Risk changes over time
INTRODUCTORY RISK: “I’m young & risk seeking…100% equities”
ADVANCED RISK: If you have $10mm, you might want to decrease your risk because you’ve already won the game.
Very hard for people to turn the page. "What got you here won't get you there"
INTRODUCTORY RISK: “I’m young & risk seeking…100% equities”
ADVANCED RISK: If you have $10mm, you might want to decrease your risk because you’ve already won the game.
Very hard for people to turn the page. "What got you here won't get you there"
When is it NOT worth the risk? What is "enough?"
This is very, very hard
Here's one of my favorite examples from the fitness world
This is very, very hard
Here's one of my favorite examples from the fitness world
https://twitter.com/ramit/status/1329126203106549762
RISK IS RARELY FOUND ON A SPREADSHEET
Ask a 40+ person: "When you think about investing in the stock market, what do you feel?"
After they say "It feels like gambling," point out return rates, 4% rule, etc
None of it will matter because FOR MOST PEOPLE, RISK IS AN EMOTION
Ask a 40+ person: "When you think about investing in the stock market, what do you feel?"
After they say "It feels like gambling," point out return rates, 4% rule, etc
None of it will matter because FOR MOST PEOPLE, RISK IS AN EMOTION
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