Dave Weinberg的动态

When I was a kid, “risk” meant ?? the epic board game of global domination. I still to this day try to destroy my friends + kids using the same “hold Australia” strategy. Now, I tend to think about risk as it relates to growth, funding, cash, and operations. Yesterday, in our Cash Plan series we discussed the “Four Things to Think About” once you have figured out how much outflow cash you need to keep on hand for operations and how much idle cash you should put elsewhere. As a reminder, the rate or yield you receive on that idle cash and how it compounds is some “powerful” stuff to keep in mind. When I talk with people about Mayfair we often go back and forth around the topic of “risk” (...before hopefully signing up...), “How much risk will I incur?” When Mayfair talks about risk, we say that it “includes not just the possibility of your investment losing value, but also less obvious hazards such as loss of access to funds due to financial stress or volatility.” The SEC defines risk as a choice, "in general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks.” [1] Actually, Mayfair built our high-yield savings platform so that you do NOT have to choose between higher returns and high risk. (more on that later) Investopedia talks about the tradeoffs between types of risk, “For example, a U.S. Treasury bond is considered one of the safest investments and when compared to a corporate bond, provides a lower rate of return.”[2] … BUT those T-bills are locked up for even a short amount of time (more on Mayfair’s no-lockups later). Liquidity and diversification are also part of risk, as FINRA discusses, “There are other types of risk, how easy or hard it is to cash out of an investment when you need to, and also how many or how few investments you hold.” [3] (We will dive into the topic of liquidity tomorrow) These are just some quick basics of "risk" -- we can and will dive in far more in future posts, but unlike the six-hour-long RISK marathons of my youth or the slow onboarding process of other financial systems, it only takes about 15 minutes to sign up for Mayfair: https://lnkd.in/exdAr3XH ? Tomorrow in our series, Part 2.3: Liquidity Want to catch up on the Cash Plan series? Intro https://lnkd.in/eWsYV6xJ 1.1 https://lnkd.in/eF3PJspy 1.2 https://lnkd.in/eqRrfNvb 2.1 https://lnkd.in/g7um9RSU Footnotes: 1. SEC https://lnkd.in/gTQT7vWt 2. Investopedia https://lnkd.in/gG5Z7Rd8 3. FINRA https://lnkd.in/gHxidXgg #finance #finance101 #risk