This game was very interesting. I was under the impression that if you wanted to comfortably retire in 40 years, you would want to have lower risk investments. However, according to the game I played, you would actually want higher risk investments since 40 years is so much time. It also said that you need to keep up with inflation. I plan on taking high risks out of college, buying basically only stocks.
The whole concept of risk is very interesting. There are so many factors that play into when and why people choose to take risk. It can boil down to personality type. The bottom line is that wealthy people are afforded more opportunity to take big swings because they have a cushion to fall back on.
I think it is interesting to think about how many different reasons people invest. Some invest to build wealth, some to preserve wealth, some people only buy stocks to hold forever, some buy high paying dividend stock, etc, etc. Then once you factor in different peoples risk tolerance, stocks vs bonds, etfs vs individual stocks. The different type of investing philosophies are so interesting.
Interesting to think about how every person has a different risk tolerance and how it depends on many personal finance factors and age. Older individuals are more risk averse, while younger individuals are probably more risk tolerant.
This game was very interesting. I was under the impression that if you wanted to comfortably retire in 40 years, you would want to have lower risk investments. However, according to the game I played, you would actually want higher risk investments since 40 years is so much time. It also said that you need to keep up with inflation. I plan on taking high risks out of college, buying basically only stocks.
Do you mean the job choice is risky?
How risky should one be out of college with their entry level job?
The whole concept of risk is very interesting. There are so many factors that play into when and why people choose to take risk. It can boil down to personality type. The bottom line is that wealthy people are afforded more opportunity to take big swings because they have a cushion to fall back on.
I think it is interesting to think about how many different reasons people invest. Some invest to build wealth, some to preserve wealth, some people only buy stocks to hold forever, some buy high paying dividend stock, etc, etc. Then once you factor in different peoples risk tolerance, stocks vs bonds, etfs vs individual stocks. The different type of investing philosophies are so interesting.
Interesting to think about how every person has a different risk tolerance and how it depends on many personal finance factors and age. Older individuals are more risk averse, while younger individuals are probably more risk tolerant.