Personal finance and financial management 20 – Risk management

As mentioned in previous articles, we know that our government is only about 30% of the pension income. It offers a further 30% of the company's pension fund, and many of them do not. Provide sufficient short and long-term investment for individuals in order to make up for a short fall if you want to live comfortably after retirement without having to give up some retirement plans. In order to protect yourself against inflation, interest rates, business and market risks in your investment portfolio, it is worth understanding the current economic conditions, investment knowledge and diversification. This article deals with risk management.

first Life Cycle Risk
In fact, the amount of acceptable risk depends on the life-cycle.
(a) A young person who is not dependent has a higher risk level than a middle-aged family.
b) The retired couple who earn income to finance their lifestyle every month are more conservative than middle-aged family members.

2nd Employment Risk
Employees of government enjoy more income security than a self-employed person who works in a service industry, often because of workers or seasonal workers. The risk of a wise thing is to settle if you have any doubt about the safety of your workplace, you can consider savings to make very low risk debt securities.

3rd Diversifies your Investments
Diversification is a fundamental principle of portfolio management that reduces total risk by choosing securities of different types of investment assets (do not place all eggs in a basket), so invest money in different investments and match your investment according to their needs, life cycle and economic conditions.

Source by sbobet

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