Last week we explored what will happen when the next crash comes......and importantly how we will react. It is the volatility of things which causes us to react, not the risk!
Volatility is not risk, risk is not volatility. I'm not trying to be profound (it's not one of my strengths!). In today's world the two are thrown together, interchanged in conversations, media and advertising, yet they are 2 completely different things. It's sort of like interchanging chalk and cheese in conversation:
Hey, did any of you students take the cheese I was using to write on this black-board? (showing my age there!)
Hey, would you like chalk on your ham & turkey sandwich?
Makes no sense, just as it doesn't to mix risk and volatility, yet we all do it, and I am as guilty as the next fella/gal!
Now this may help some of you, and it may not help, yet it is a critical aspect of retirement planning, pensions, investing and savings of any sort here in Ireland, it is vital to understand the difference between the 2, particularly if you want to make informed money decisions...speaking of which please do pop over here to find out why we exist, what our purpose is and why we are Ireland's first Financial Planning & Money Podcast. Also, if you have any questions or comments we'd love to hear from you, just drop a message to us here.