The Dynamic Duo: Risk and Reward

Key Takeaways

  • Risk and reward both clash and work together, and are culturally significant here in the US as American investors tend to embrace more risk than elsewhere.
  • Risk tolerance is how much you are/are not willing to take a risk on an investment, and there are several types or risk markets you can invest in based on your risk tolerance.
  • Your short term and long term goals affect how you allocate your investments.

The Diversified Investment Palate

Key Takeaways

  • Successful investment management is based on diversification and asset allocation.
  • Diversification means investing in several different areas, and asset allocation is how much in an area you invest in based on several factors specific to you.
  • Time frame is important in investing as you need to be consistent.

Take Stock in Sam, Bond with Mike

Key Takeaways

  • A stock is a share of ownership in a company, whereas a bond is a debt instrument with a set interest rate, time frame, payment intervals and principal payment at the end.
  • Risk and reward are key with stocks and bonds. Stocks are riskier, with the reward greater, as well as the possible loss. Bonds make consistent money and you tend to get some back if the company doesn’t fare well.
  • Stocks and bonds are risky investments, but it’s important to know their uses.

When Funding Your Child’s Education, Let’s Not Repeat History

Key Takeaways

  • Student debt has doubled over the past seven years.
  • Newly minted 2016 graduates have an average of $37,000 in debt—some have debt loads in the six figures.
  • 529 plans are excellent, tax-advantaged ways for most parents and grandparents to save for a child’s education. Start saving as early as possible in the child’s life.