The poor are poor, the rich are rich

Chapter 111 3 Correctly Estimating Your Ability to Take Risks

Chapter 233 Correctly estimate your ability to take risks

If you had a monthly salary of 1000 yuan and you had to support your family, would you choose stocks?Can you afford to lose your child's milk powder money and family living expenses in the stock market?At a time when the investment market is booming, whoever wants to stand up and say that investment is risky and investors need to prepare early, it seems that not many people pay attention to it.However, does the risk disappear because of the hot market?Of course not. Investment and risk are like the relationship between people and shadows. Even if they go to a corner without sunlight, they are still inseparable.Therefore, every investor must be clearly aware of the existence of risks, and must clearly understand his ability to bear risks, and be prepared to actively deal with investment risks.

Factors affecting risk tolerance include: investment age, flexibility of investment objectives, and investors' subjective risk preference.

Let me talk about age first.From the perspective of investment, the money invested in a person's life is divided into two parts: one part is past savings, and the other part is future savings. The older you are, the more past savings you have, and the smaller your future savings.Past savings, as the current investment capital, is the part that bears the risk now, and future savings can be regarded as the capital to be apportioned after discounting the value of the current capital.From this, it can be deduced that the young people have a strong ability to bear risks, while the old people have a relatively weak ability to bear risks.If you invest blindly without considering the age factor, you may lose money for life as a result.

Second, the flexibility of investment objectives.The greater the flexibility of investment objectives, the higher the risk tolerance.If the investment target time is short and inelastic, capital preservation is the most sensible choice.For example, Mr. Li invests 10000 yuan in stocks and intends to use the investment proceeds for a domestic travel plan with his family. If Mr. Li succeeds, he will take his family out to relax. If he fails, he will not travel at most.It can be seen that the investment flexibility is large and the risk tolerance ability is also strong.

Of course, the most important thing is the subjective risk preference of investors.Different people have different degrees of risk tolerance. Investors' subjective risk preference is mainly reflected in their risk tolerance.Risk tolerance is a prerequisite for our risky investment, so we must correctly estimate our risk tolerance.If you want to know your risk tolerance, you may wish to do the following ability test.

1. Your age
（1）25岁或以下；（2）26岁到35岁；（3）36岁到45岁；
（4）46岁到55岁；（5）56岁到65岁；（6）66岁或以上。

2. Your marital status
(1) Single; (2) Married; (3) Divorced.

3. How many children do you have

（1）没有；（2）一个；（3）两个；（4）三个；（5）四个以上。

4. Your education level
(1) Elementary school; (2) Middle school; (3) Junior college or technical secondary school; (4) University or above.

5.If you add up all your current assets (bank deposits, stocks, bonds, funds, etc.) and subtract irregular expenses in the next year (such as getting married, buying a car, etc.), how many times is your monthly salary approximately?
（1）20倍以上；（2）15.1～20倍；（3）10.1～15倍；
（4）5.1～10倍；（5）2.1～5倍；（6）2倍以下。

6. How much do you estimate that your income will increase in five years from now?
（1）50％以上；（2）30.1％～50％；（3）20.1％～30％；
（4）10.1％～20％；（5）0.1％～10％；（6）收入不变或下降。

7. Your average monthly expenses as a percentage of your income

（1）100％以上；（2）80.1％～100％；（3）60 1％～80％；
（4）40.1％～60％；（5）20.1％～40％；（6）20％以下。

Scoring method:

A B C D E F
11486420
21206
3179420
40246
515129630
6181410520
702481218
Test answers and analysis:
81 points or above: Since you do not have much financial burden, you can easily accept higher than average risks, and you can choose high-risk investment projects to earn higher returns.

61-80 points: You have only a small amount of financial burden, and you can accept a relatively high level of risk, and you can accept investment projects with slightly higher risk than the average.

41-60 points: Your ability to accept risks is at an average level, and you can accept ordinary risks.

21-40 points: Since your personal burden is heavier than that of ordinary people, your ability to accept risks is also low, and you cannot accept too high-risk investment projects.

Below 20 points: Your ability to accept risk is extremely low.Because you have a heavy burden, you should invest in low-risk investment projects.

(End of this chapter)