“Always make sure you have a very clear goal and don't lose sight of what it is you're taking a risk for.”

    NEW YORK, NY, July 02, 2019 — Money Answers Show host, Jordan Goodman, invited Allison Schrager, co-founder of the risk advisory firm LifeCycle Finance Partners, LLC and a journalist at Quartz as well as author of An Economist Walks Into a Brothel, to discuss how planning for risk while investing can help guide your management and reach success.

Money Answers Show episode, “Making Money & Risk Assessment: Increase Your Odds for Success” dives into the idea of risk taking when it comes to investments and just how much we are willing to pay for safety. For many, this concept is hard to decipher and many personal finance books out there focus on mathematical equations and numbers which can be confusing. Schrager's book uses a storytelling concept using real-life examples, including brothels in Nevada, to explain the idea of balancing risky and risk-free options.

Whether you're deciding to play it safe or taking a risk to increase the rewards, it's important to know your goal and to be sure whichever choice you make is working towards your goal. Schrager states:

“Always make sure you have a very clear goal and don't lose sight of what it is you're taking a risk for. You can't just take a risk for risk sake. You can't just say, I need a change so I'm gonna quit my job. You have to be really clear about what it is you need from a job or is is that if you're saving money, what is your goal is to spend that money.”

This concept applies when working towards, or during, retirement as well. After saving for many years it can be difficult to think of that money as worth spending when you may possibly need it in the future, but there is the value of enjoying life as well. Shrager recommends thinking of it less as savings and more as income to help determine what you are willing to spend and what needs to be put aside.

Overall, when planning for your financial future you need to determine what your goals are and how you are going to meet them. While risk-free investments may make you feel safe, they come at a higher premium for that safety. Risky investments may yield a higher return, but you need to find a balance that works for your lifestyle. Schrager supports talking with a financial planner to help weigh the pros and cons to determine a plan to meet your goals.

For more information on how to determine the right risk and risk-free investments for your portfolio, listen to “Making Money & Risk Assessment: Increase Your Odds for Success” and other great podcasts from the Money Answers Show.

You can listen to The Money Answers Show with Jordan Goodman live every Monday 12 p.m. PST; 3 p.m. EST. or download the podcast on iTunes, Stitcher, or wherever you get your podcasts. You can also catch Goodman on Money Answers TV. If you're looking for additional information on financial topics, you can read Goodman's books on everything from repaying your student loans to real estate.

Jordan E. Goodman is “America's Money Answers Man” and a nationally-recognized expert on personal finance. He is a regular guest on numerous radio and television call-in shows across the country, answering questions on personal financial topics. He appears frequently on The View, Fox News Network, Fox Business Network, CNN, CNBC, and the CBS Evening News. He is the author/co-author of 13 best-selling books on personal finance including “Master Your Debt Fast Profits in Hard Times,” “Everyone's Money Book,” “Master Your Money Type,” “Barron's Dictionary of Finance and Investment Terms and Barron's Finance and Investment Handbook.” Jordan is also a speaker and seminar leader on personal finance topics for business executives, students, associations, investment clubs, employees and others. For more information, please visit https://www.moneyanswers.com.

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