Hi 2gifts,Someone's risk tolerance is a big piece of the decision on how to handle their finances and how they reach their goals.I think you are not only correct, I think this topic is a bit jarring to some folks here because they've never stopped to quantify the specific costs of the risks, and learn to standardize among investing options to compare effectively.Here's something I just wrote to someone else to help them understand, in big picture terms, the relative costs of risks;Compare 3 groups of 1 million people, all earning the same income & each consistently employing all their capital uniformly in;a. IUL, no loss, avg 8.7% b. S&P buy & hold, possible avg 10-14%c. Lottery tickets, possible 1,000% returnWhich method gives the highest potential gains? = CWhich will pay out the most gross returns to the entire group? = AWhy? Because in B & C the total losses of the losers are greater than the winners. A has no losers.If merely the *potential* of the higher return is an individual's priority, then the lottery trumps a naked S&P hold position... but most people don't think it through, and Wall Street (just as with Vegas) encourages the ignorance.Dave DonhoffLeverage Planner
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