I Knew It Was Risky

Read Time / 2 Minutes

Theme / Wise Investing

I knew it was risky, but I could not resist.  It was the middle of summer, and the local public pool was calling my name.  My friends and I had made plans to spend the afternoon cooling off from the heat, and I was ready!  The only problem was that my mother had asked me to vacuum the living room and dining room first.  She had gone to the store, and all I had to do was finish the chore then I could jump on my bike and head to the pool.

I was, however, impatient, so I decided to take a risk.  I grabbed a kitchen knife, sliced into the vacuum’s power cord disabling the vacuum, and then smugly slipped out the front door.  Thirty minutes later, my mother abruptly showed up at the pool, with hands on her hips and a scowl on her face, and I knew my devious deed had been uncovered.  I think I was grounded for life.

Proverbs 22:3 reads, “A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.”  Just as I made a risk versus reward calculation as a middle-schooler (albeit not prudently), we should be doing the same analysis when we invest.  On one end of the spectrum, we can avoid risk and not invest, while on the other end we can throw caution to the wind and invest unwisely.  Most of us should fall somewhere in the middle of the spectrum by taking calculated risks to achieve potential rewards.

I remember taking electrical tape, repairing the cord, and finishing my vacuuming chore.  But whenever I saw the tape on the cord, it reminded me to be prudent and make more calculated decisions in the future.  Likewise, in investing, let each of us strive to be pragmatic, taking calculated risks for probable rewards.

Doug Hanson, MBA

Wealth Advisor

(208) 697-3699

doug@christianwm.com