Risk VS. Guarantee with your money?
964999
The below links discuss the risks and volatility of stocks compared to other investments.  Diversified stocks are risky over the short term, but over the long term (>15 years) are great investments.  (If you don't diversify properly, stocks are even more risky.)
2800
I just asked myself this question a couple of months ago. I ran a spread sheet with a side by side comparison of my 6 1/2% 30 year mortgage versus an equal dollar amount invested at 5% for the same term. You would expect to save quite a bit paying off the debt but you actuality save by keeping the mortgage.
195069
My background is Business Admin., and I own a mortgage company.\n\nIn business one of the most important factors to learn is risk assessment. Are the rewards greater than the possible loss?\nFrom your question my friend, is sounds like you already know what the best option for you is.
918984
Check into a reputable insurance co.  Not one offered by the bank or broker.  You can get a much higher return if you go directly to an insurance co.  Rollover your 401K to a Fixed Annuity if you like safety and want to see it grow and no risk of the market.  Hope that gives you some info.
104121
Risk is the exposure to uncertainty.  An insurance policy is an exchange of a certain loss (the premium) to have another party (the insurer) absorb all or part of the negative consequence of being exposed to that uncertainty.\n\nFor example, you have virtually no risk of dying in an airplane crash if you do not get in an airplane.  You are not exposed, other than that a plane could fall on you.  Likewise, if you jump out of an airplane without a parachute, there is no risk.  You have all the exposure in the world, but it is certain that you will be killed.  There may be some trivial risk that you live but it is so small that it can be ignored.\n\nYou need two things, uncertainty and exposure.  Life insurance is a good example, you know for certain that you will die, you do not know when.  The insurer covers you against premature death.  Its reverse, the immediate annuity, covers you against living too long and running out of investment resources.
373503
This depends on your goals, level of risk you are willing to accept, and many other factors.  For me, I like shares of small start-up companies.  Very high risk, but very high rewards IF it pans out.
79885
It depends on how long you can leave your money invested. The higher the returns you seek, the more risk of short term losses you are going to need to accept. If you do not have a long time to stay invested you need to pick more conservative investments. Over the long term, the highest returns are earned by stocks, with small company stocks edging out larger company stocks. Bonds will typically give you lower rates of return than stocks, but less unpredictability. CD's and money markets are at the low end return-wise, but have virtually no chance to losing value.\n\nSeek the advice of a financial planner. Have him/her help you complete a Risk Tolerance Analysis. The results of this analysis will guide you to the proper mix of assets for your particular savings goal.
27267
You are asking for a 45% annual compounded return!  It is possible to do that if you get very lucky witb a very small portfolio of small stocks.  It is also possible to win the lottery.  Neither of these alternatives is really "investing", they are both gambling.  By the way, anyone who says they know how to that is either lying or delusional.
475784
Risks of Investing in Bonds\nAll investments offer a balance between risk and potential return. The risk is the chance that you will lose some or all the money you invest. The return is the money you stand to make on the investment.\n\nThe balance between risk and return varies by the type of investment, the entity that issues it, the state of the economy and the cycle of the securities markets. As a general rule, to earn the higher returns, you have to take greater risk. Conversely, the least risky investments also have the lowest returns.\n\nThe bond market is no exception to this rule. Bonds in general are considered less risky than stocks for several reasons:\n\nBonds carry the promise of their issuer to return the face value of the security to the holder at maturity; stocks have no such promise from their issuer. \nMost bonds pay investors a fixed rate of interest income that is also backed by a promise from the issuer. Stocks sometimes pay dividends, but their issuer has no obligation to make these payments to shareholders. \nHistorically the bond market has been less vulnerable to price swings or volatility than the stock market. \nThe average returns from bond investments have also been historically lower, if more stable, than average stock market returns.\n\nHigher Risks=Higher Yields\nA specific bond’s risk level is reflected in its yield, another name for return on a bond investment. “Current” yield is a function of the bond’s:\n\nCoupon rate: the annual interest rate the issuer promises to pay the investor, stated as a percentage of the bond’s face value or “par,” which is the amount the investor can expect to have returned on the bond’s maturity date. \nCurrent price, which may be a premium (more than) or discount (less than) in relation to the bond’s face or par value. \nYield-to-maturity reflects the relationship between the total coupon interest payments remaining between now and maturity, and the difference between today’s market value (price) and par value. Yield-to-call is the same calculation based on the total coupon interest payments remaining between now and the first call date (rather than the maturity date) as well as the difference between today’s market value (price) and the call price.\n\nThe higher the risk in a given bond, the higher its yield needs to be to compensate the investor for taking the risk. When the market perceives the yield on a bond to be too low, its price will fall to bring the yield in line with market expectations or prevailing interest rates.\n\nIt’s All Relative to “Riskless” Treasury Yields\nBonds issued by the U.S. Treasury are backed by the full faith and credit of the U.S. government and therefore considered to have no credit risk. The market for U.S. Treasury securities is also the most liquid in the world, meaning there are always investors willing to buy. U.S. Treasury yields will almost always be lower than other bonds with comparable maturities because they have the fewest risks.\n\nRelative yields—which may be discussed in terms of “spread” or difference in yield between a given bond and a “riskless” U.S. Treasury security with comparable maturity—vary with the type of bond, maturity date, the issuer and the economic cycle.\n\nCallable bonds are riskier than non-callable bonds, for example, and therefore offer a higher yield, particularly if the call date is soon and interest rates have declined since the bond was issued, making it more likely to be called.\n\nShort-term bonds with maturities of three years or less will usually have lower yields than long-term bonds with maturities of 10 years or more, which are more susceptible to interest rate risk. All bonds have more risk when interest rates are rising, but those with the lowest coupons stand to lose the most value.\n\nUnderstand the Risks Before You Invest\nBonds have a role to play in virtually every investor’s portfolio (See the article on Asset Allocation for more inf
463506
commodity is risky.  \n\ndepending on your investment goals, I would talk to a financial advisor.  Usually your bank will have people you can talk to for free.\n\ngood luck.
176240
The business of selling money is very lucrative but also very complicated.\n\nYes, it is worth the risk.\n\nI suggest you to hire a Risk Manager or drop me a line.
890092
Kinda' depends on what you're investing in, but basically, I would look at rate of return over at least a 10 year period (absolute minimum 5 years).  Longer track records are better.  Ten percent or more is good.  Don't forget to factor in taxes, risk, and inflation.  For example, taxes will eat about 2.5% of your 12%.  Inflation will eat about 4% of your 12%.  And risk is dependent on the type and volatility of the investment.
714459
Nope.  That is the risk you take with the market and using brokerage firms to manage your hard earned money.  All of the paperwork and even your quarterly statement indicated that these investments were no guaranteed, insured and could lose value.  It is a hard pill to swallow, but you are not alone.  The great thing is that you get to pay these crooks to lose your money!  Sorry,.
344414
This question can have a number of answers, depending upon which context it refers to.  \n\nFor example, imagine a life insurance company receives premiums on a regular and predictable basis.  They invest most of this money in the equity market.  Then they have to pay out money on life insurance policies as people die.\n\nHow much will they have to pay out?  Well, it depends upon your assumptions.  If you assume that people will more or less live as long as they usually have in the past, then you can use tables of numbers that let you estimate how much money will probably need to be paid out over time.  this is an estimate and cannot be certain, and so some assumptions and mathematical models are used.  Hence the word "modelling".\n\nThe money they have to pay out is their "liability".\n\nTheir assets are whatever they bought with the premiums they received, as in stock.  Will the stock market grow enough so that stock can be sold to pay out on the life policies? That depends on  how you model the returns of the stock market.\n\nIn the past, actuaries assumed that stocks will make as much money as they usually have in the last 20 years or so.  Unfortunately they may be wrong.  Another model that is safer to use is that of "risk neutral valuation" which is a model used in option pricing.  it is also the model used by banks to value their assets and liabilities.\n\nhope that example explains the idea.
213342
You might be thinking of LEAPS. They are long term option like creations. All options/warrants/leaps lose value over time. The longer the time until they expire usually means they have a greater premium.\n\nIt is not something I would personally do.
668408
I assume you mean in a business/career sense, since that's where you posted your question.\n\nThe biggest risk I took?  Quit my secure, stable job with a computer software company to sell insurance.  As it turns out, I'm a lousy salesman, and my business was short-lived and not very lucrative.\n\nHowever, because I had quit my job with the computer company, I was approached by a local college and asked to teach some computer classes - best job I ever had.  Loved every minute of it.  So, in retrospect - even though there were some pretty big bumps in the road, the risk I took paid off in the end.  When I was teaching, I was earning about the same amount that I was at the computer company, but I was much, MUCH happier.  I was home with my wife and kids more, easier to get along with.  It was better all around.\n\nLife is full of risks.  Look at ANY highly-successful person and you'll find that they took many big risks.  But when they took these risks, they never looked back.  They realized that they had made a decision and saw it through.  They believed in it, and while not all of their choices worked out as well as they had hoped, the ones that did work out well far exceeded the damage done by the poor decisions.
479576
You have to decide if it is a good investment or not.\n\nI suggest you contact several licensed insurance agents in your state and tell them your wishes and needs.  Have them explain term insurance (which is geared toward covering a fixed amount of time - the "term") and permanent insurance (whole life, universal life and variable universal life).  You may also wish to contact one or more financial planners in your area to discuss your personal financial situation.\n\nDo not expect complete answers from a web forum.  You have not given full information about your financial position and needs.  I would not expect anyone to post that sensitive information on a website.\n\nBTW Jstmother's answer is a grave disservice to you and to the insurance world. It is very incomplete and misleading.