How Much Risk Should You Take With Your Money? Three Considerations

January 14, 2009

Did you ever think that your age would have anything to do with evaluating risk when it comes to investing? It’s very important!

Would you like to know more about things to consider?

Read on…

Before investing even one thin dime of your money, it’s important to understand the important concept of risk and return.

Risk and return means that the returns you will get when investing your money will vary.

You may even lose money. Yikes!

However, no matter what you do with your money, you are always taking some amount of risk. If you keep your money at home in a shoebox, you risk that it could be lost or stolen. If you place your money in a bank account, you risk that the returns that you get will not be high enough.

Risk and return also means that if you take greater risks, you should expect to get greater returns.

If you want the possibility of getting greater returns, you need to invest your money in more risky investments, for example bonds or stocks. Returns vary there, too. Different bonds and stocks even have different degrees of risk.

So how much risk should you take with your money? That depends on more than just your age. It also depends on factors such as risk tolerance, and investment objectives.

No matter where you invest your money, you first should understand the investment’s risks and potential rewards. So before you make any plans to invest, research your options. Be sure they match your goals, and that the investment is something you can afford to make in the first place.

Money Minute for Kids-The power of a penny!

December 17, 2008

httpv://www.youtube.com/watch?v=DwSEeDKtiL4

Talk With Your Children About Your Financial Situation

November 19, 2008

In my last post, I talked about the importance of teaching your children ‘money smarts’. Remember, no matter how old your children are, it’s never to early, and it will never be too late to empower them with the skills they need to manage money and reap financial rewards from the choices they make.

If you were one of the lucky few whose parents did teach you money skills, consider yourself blessed. The present economic situation is a perfect time to teach our kids the importance of money management and the need to respect money for what it is, and isn’t.

So, where do we start? With the basics. Depending upon your child’s age, you can start with talking about money. Most of us don’t discuss the family’s financial situation at the dinner table. I propose you do. I think it’s important that children understand what is happening, good or bad, with the money being earned. Don’t get me wrong here; I’m not suggesting you tell your kids your annual income or the balance of your investment portfolio. What I am suggesting is to bring the kids into conversations regarding ways to save, creative ways to earn additional money and what to spend that money on.

For more information on teaching kids about money management, by

Emailing patti@kidscashcoach.com or calling my office, 661-296-6054.

Empowering Tomorrow's Leaders

October 24, 2008

Today’s kids are tomorrow’s leaders, healers, entrepreneurs and what ever else they desire to be. Our futures, their futures, are in our hands… for now. Our schools teach the fundamentals we all know and love -- reading, writing, math, science and history. What concerns me is our school system lacks some of the ‘street smart’ skills that kids will need to be those successful leaders, healers and entrepreneurs.

As parents, we must teach our children ‘money smarts’. Can you imagine how empowered you would be if your parents taught you how to balance a checkbook, invest in the stock market and manage credit card debt? What would your life be like if as a child you’d been taught how to start a business, or the value of compounding interest?

Maybe you never learned these skills yourself and feel inexperienced or unqualified to teach them to your children. You’re not alone. No matter how old your children are, it’s never too early, and it will never be too late to empower them with ‘money smarts’. Learn more about kids and their relationship to money by Emailing patti@kidscashcoach.com or calling my office, 661-296-6054.

Patti Handy: Money Coach

October 24, 2008

Patti Handy, Money Coach, after receiving her Bachelors Degree in Accounting Theory and Practice, spent nearly 25 years in banking, working in various capacities in the institutional investments arena. She has also been a Sr. Mortgage Advisor for over 6 years. As a CTA Certified Life Coach, Patti uses her unique combination of experiences to help clients take control of their money matters, create a wealth plan, consolidate debt and improve credit scores. Within a safe environment, she assists in empowering clients with the knowledge and tools necessary to move forward. She is presently working on a program to educate kids with money skills as well. Visit her websites www.wisdomwithinyou.com and www.kidscashcoach.com for valuable FREE downloads.

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