We all have a different view on what risk is. Given the same input, we come to a different conclusion. That is what makes discussing investing so beautiful.
The other day, I was talking to someone on my options trading. He did not like that at all, too risky. However, he had been trading turbo’s before. Now, that is what I call risky.
When I spoke to some seasonsed value investors on a local happening, I got a lot of pushback from some on my ETFs. To risky, unclear what you have.
Too often, people judge an instrument or strategy based on rumours, based on the lack of knowledge or worse: they are convinced their way is the only way.
Sadly, the same is true for the vast majority of the Belgian people. They do not invest. Too risky, too dangerous, look at 2008,… Dividend cake make a good summary of the current state in Belgium. When you only save, you loose money. Interest rates does not keep up with inflation these days. They loose money. And that is not a paper loss, It is a real loss of buying power, every year.
To me the real risk is run out of money so that I need to change my lifestyle. That would be a big drama. With investing, I have a change to do better.
People need more education on investing, on finance, on compounding interest and the danger of inflation. Despite all MIFID rules and good intentions of the regulators and government, we seem to be getting further away from the educational targets.
I do acknowledge that not everybody can save and invest. Some people have a hard time…
For those that make a decent living, consider living below your means, build up an emergency fund and invest the rest. Invest wisely, diversified.
I hope to contribute a little to the education with the blog, the blogroll and the talks I have with people on the subject.
How do you want to help?