One of the best investing lessons I ever learnt
Excerpt from the Money to the Masses podcast episode 464 - • Podcast Ep 464 - Funding private healthcar...
Watch the full episode to hear me talk about investing and risk management, inspired by Morgan Housel's book "Same as Ever." I reflect on the concept of risk, noting that the most significant risks are often unknown and unforeseen, such as the COVID-19 pandemic. I suggest listeners assess their risk tolerance and adjust their investment portfolios accordingly. For those uncertain about their risk profile, I recommend using risk assessment questionnaires or using robo-advisers onboarding journeys which assess customers' risk.
I emphasise the importance of being prepared for unknown risks by having a larger emergency fund than one might think necessary. I suggest aiming for 12 months of expenses instead of the traditionally recommended six months, to better cope with unexpected events.