How risk averse are you?
Poll: How risk averse are you?
Total Members Polled: 100
Discussion
I am probably going to retire in a few months. That is probably focusing my mind on a few issues. One is risk. Should I be conservative with our money to make sure we don’t run out…or should we enjoy our spoils as much as possible whilst we still have reasonable health?
Although we seem to be reasonably healthy plenty of people in our age group drop dead from heart attacks or get cancer. Should I be keeping plenty of money in case we live to ninety? But then what happens if something s
t happens in the next ten years and I look back with regret with all the things we could have done.
In a similar vein…should I buy another motorbike? Perhaps do some track days now I will be back in the U.K., or is that too great a risk now I’m getting older and don’t bounce or heal as well as I did when I was younger?
My own brother is off the scale with respect to risk (and lack of planning). At his most recent wedding his best man gave a speech, including such gems as “K’s idea of long-term planning is what will I be doing at the weekend…and even then it will have changed by the time the weekend arrives!”
So - how risk averse are you.
Although we seem to be reasonably healthy plenty of people in our age group drop dead from heart attacks or get cancer. Should I be keeping plenty of money in case we live to ninety? But then what happens if something s
t happens in the next ten years and I look back with regret with all the things we could have done.In a similar vein…should I buy another motorbike? Perhaps do some track days now I will be back in the U.K., or is that too great a risk now I’m getting older and don’t bounce or heal as well as I did when I was younger?
My own brother is off the scale with respect to risk (and lack of planning). At his most recent wedding his best man gave a speech, including such gems as “K’s idea of long-term planning is what will I be doing at the weekend…and even then it will have changed by the time the weekend arrives!”
So - how risk averse are you.
Everyone will be in a different situation. Don’t know your age, or how much you get in pensions, or assets (house, cash, investments), offspring, so it’s a bit how long is a piece of string. You also say “we” so assume there’s your other half too.
I retired early 50s but I didn’t have kids. Work paid quite well and had assets and private pensions.
For me I can live comfortably till whenever, but I won’t be buying fast cars (been there done that). I can travel and do things but I won’t be staying in the top hotel, I didn’t before anyway, just a good hotel that’s clean and comfortable, I’m travelling to see places, not hotel rooms, I’ll pay the extra for a seaview room.
Old age if I make it?.. well I still have assets and pensions so.. maybe it will be enough but I’m not going to sacrifice “now” too much for “then”.
I retired early 50s but I didn’t have kids. Work paid quite well and had assets and private pensions.
For me I can live comfortably till whenever, but I won’t be buying fast cars (been there done that). I can travel and do things but I won’t be staying in the top hotel, I didn’t before anyway, just a good hotel that’s clean and comfortable, I’m travelling to see places, not hotel rooms, I’ll pay the extra for a seaview room.
Old age if I make it?.. well I still have assets and pensions so.. maybe it will be enough but I’m not going to sacrifice “now” too much for “then”.
The older I get, the more worried I get about stuff. Which is mad as I have far less to lose now. If I die doing something daft today, I've maybe lost 20 years of life. When i was 20, I stood to lose 60 years of life.
But these days, passing a loo without having a pee seems like a big gamble.
But these days, passing a loo without having a pee seems like a big gamble.
Kawasicki said:
I have, since a very early age, actively sought out risk. I have had a great life, and hope it continues for a while yet.
Risk is one thing, how you deal with it is another.
I ride motorbikes a lot, I aim to stay focused and ride hard when possible and slow when I deem it’s necessary.
Name checks out Risk is one thing, how you deal with it is another.
I ride motorbikes a lot, I aim to stay focused and ride hard when possible and slow when I deem it’s necessary.
I’m not averse to risk….came in to the world with nothing!
My dad (who was on 3 ships that sunk at Dunkirk, but a strong swimmer!) always said “if you can’t do something about a problem, do it; if you can’t, don’t worry about it”.
Retired 3 years ago.
You say “ Should I be conservative with our money to make sure we don’t run out…or should we enjoy our spoils as much as possible whilst we still have reasonable health?”.
I’m a strong believer that once you hit mid-70s (ish!), your spending will inevitably drop (unless you really enjoy expensive world cruises!). I lean towards enjoying your spoils whilst healthy.
Nobody knows if they will fall ill, but I bet many of us know people our age (or younger) who are dealing with health scares.
I went to 4 funerals in a 14 month period some years ago: 2 good friends my age. Life is for living (with a nudge to planning too, of course!)
Once retired, you can pick cheaper times to do many activities - holidays, shows, etc….
Live your best life!
I'm thinking the habit of being spontaneous, impulsive
living your life day to day with no regard to plan or
structure is less a case of embracing
risk and more the symptoms of
being a sociopath.
Safe to say, if my petrol tank is half full and the
nearest filling station is 5 miles away, this can
increase my heart rate
more than is
good for me.
living your life day to day with no regard to plan or
structure is less a case of embracing
risk and more the symptoms of
being a sociopath.
Safe to say, if my petrol tank is half full and the
nearest filling station is 5 miles away, this can
increase my heart rate
more than is
good for me.
Money wise I’ve always been sensible
Currently have enough to pay my mortgage off (I’m early 40s) but keeping it in reserve for god knows what
Pump lots into my pension now.
Both wife and I have had cancer in recent years and have a young kid, the reserves in my bank are for if one of us dies - it’s a buffer
If I die my work death in service thing will make things golden for my wife financially
I should probably just pay the mortgage off though, would make the stress of work a bit more manageable knowing I can take it or leave it
My sister on the other hand, if you have her 10k and promised a return of 20k in 12 months, she would have a new sofa and what not within minutes.
Currently have enough to pay my mortgage off (I’m early 40s) but keeping it in reserve for god knows what
Pump lots into my pension now.
Both wife and I have had cancer in recent years and have a young kid, the reserves in my bank are for if one of us dies - it’s a buffer
If I die my work death in service thing will make things golden for my wife financially
I should probably just pay the mortgage off though, would make the stress of work a bit more manageable knowing I can take it or leave it
My sister on the other hand, if you have her 10k and promised a return of 20k in 12 months, she would have a new sofa and what not within minutes.
Jasandjules said:
Hard to say, I like parachuting (not know I am too old), diving with sharks, driving fast.... But then I had private pensions when I was 20.......
In a related vein, I tend to give myself a stable platform from which to take risk. I.e. you're seeking to limit the downside. E.g. working in the City, jobs inherently insecure, therefore make sure you've got enough in the bank to cover losing job and being able to wait out an extended period of time comfortably (e.g. a couple of years to ride out a big financial crash). That gives you the freedom to take properly speculative jobs with start-ups. Also look to broaden your experience rather than become super-specialised so you've got more options and can be the glue in an organisation, bridging others' silos. And with stuff like pension, a low risk base then a big chunk of diversified but quite high risk equity. If it works out, great. If it doesn't work out, you're still not in a catastrophic position.And I drive a bit too fast and like clambering across rocks on hills where it would hurt a lot if I slipped and I have a table saw. Living on the edge, man.
Edited by ATG on Sunday 14th April 13:43
As a young man, I couldn't give a damn about risk, it was all about reward.
As an old man I take zero risks, especially with a savings pot that I cannot replace, it is placed as safe as possible.
Personal safety is high on the agenda, next door neighbour is just trash, he has threatened to kill me, police are aware but he has denied the comment to them.
Hygiene and health, if someone even sneezes near me I walk away.
As an old man I take zero risks, especially with a savings pot that I cannot replace, it is placed as safe as possible.
Personal safety is high on the agenda, next door neighbour is just trash, he has threatened to kill me, police are aware but he has denied the comment to them.
Hygiene and health, if someone even sneezes near me I walk away.
I think when you’re younger then often the impact would be lower, e.g. for financial risk of losing job or facing having savings wiped out, very different as a single 20 year old versus in 40s-50s with dependents.
For physical risk then you can avoid extreme sports but not sure that helps, worst injuries I’ve had were from things like twisting ankle on a curb or sleeping awkwardly!
For physical risk then you can avoid extreme sports but not sure that helps, worst injuries I’ve had were from things like twisting ankle on a curb or sleeping awkwardly!
Yeah I'm good with higher risk levels if I can see its proportionate to a higher potential reward.
To take risks without thinking about the level of reward though is reckless / stupid.
One of my biggest fears is actually not doing stuff, not taking some risks, not regularly pushing myself outside my comfort zone.
It would just feel like a grey life, keeping your head down and staying in lane, nothing to report here, move along please.
To push on that, when I do play too safe it eats me up that my life is a bit pointless - doesn't make a difference if I'm here or not, not using the opportunity to have a good old wander around getting into adventures, for better or for worse.
Playing it all safe for me feels like an end-game of thinking "phew, I survived life". I just think that's playing life in 'defence mode'.
I think our fleeting existence on this planet has more to offer than that. For me taking risks makes me feel alive, I'm making moves, got some skin in the game here.
And admittedly I'm no doubt (overly!) confident in backing myself to make decisions and manage situations. If my odds are 50/50 in any circumstances, I bet on me every single time without hesitation.
Obviously I've got plenty of things wrong and will continue to do so, but that's just life, when it happens dust yourself down, learn from it and go again & do better next time.
I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
To take risks without thinking about the level of reward though is reckless / stupid.
One of my biggest fears is actually not doing stuff, not taking some risks, not regularly pushing myself outside my comfort zone.
It would just feel like a grey life, keeping your head down and staying in lane, nothing to report here, move along please.
To push on that, when I do play too safe it eats me up that my life is a bit pointless - doesn't make a difference if I'm here or not, not using the opportunity to have a good old wander around getting into adventures, for better or for worse.
Playing it all safe for me feels like an end-game of thinking "phew, I survived life". I just think that's playing life in 'defence mode'.
I think our fleeting existence on this planet has more to offer than that. For me taking risks makes me feel alive, I'm making moves, got some skin in the game here.
And admittedly I'm no doubt (overly!) confident in backing myself to make decisions and manage situations. If my odds are 50/50 in any circumstances, I bet on me every single time without hesitation.
Obviously I've got plenty of things wrong and will continue to do so, but that's just life, when it happens dust yourself down, learn from it and go again & do better next time.
I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
Edited by Gigamoons on Sunday 14th April 13:32
Gigamoons said:
One of my biggest fears is actually not doing stuff, not taking some risks, not regularly pushing myself outside my comfort zone.
I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
Good man with the right attitude I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
bigothunter said:
Gigamoons said:
One of my biggest fears is actually not doing stuff, not taking some risks, not regularly pushing myself outside my comfort zone.
I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
Good man with the right attitude I'd rather get to the end and think "wow, that definitely had it's ups some ups and downs, but what an experience that was".
enjoy what you can while you can
Some of my previous jobs in Engineering
Research into Design for Reliability (and maintainability)
Integrated logistics support (military)
Six Sigma Black Belt
Warranty investigation Engineer (Wind Turbines)
Supplier Quality Engineer (Off highway Hydraulics)
Design FMEA Facilitator (Jet Engines)
Project Manager (Military Autonomous vehicles)
Process Improvement Engineer (Responsible for carrying out machinery risk assessments)
Robust Design Coach.
Manufacturing Engineer -new product introduction (Automotive)
Have I ever been accused of being too analytical, too risk paranoid? Yes. Have I ever been congratulated on a smooth, error free handover ? No.
Who gets promoted in the Developed world ? Is it those with a can do, sort it out later, do it now attitude? Or those that work hard to make sure it's right.
Strange how my wife accuses me of just ploughing on regardless, without any planning or thought.
I'd rather just go on holiday without any research other than knowing I have the right injections and visa, than plan every single day in advance.
When it comes to financial matters I've been accused of being mean. I find it easier to have nothing spare, then you can't waste it.
Research into Design for Reliability (and maintainability)
Integrated logistics support (military)
Six Sigma Black Belt
Warranty investigation Engineer (Wind Turbines)
Supplier Quality Engineer (Off highway Hydraulics)
Design FMEA Facilitator (Jet Engines)
Project Manager (Military Autonomous vehicles)
Process Improvement Engineer (Responsible for carrying out machinery risk assessments)
Robust Design Coach.
Manufacturing Engineer -new product introduction (Automotive)
Have I ever been accused of being too analytical, too risk paranoid? Yes. Have I ever been congratulated on a smooth, error free handover ? No.
Who gets promoted in the Developed world ? Is it those with a can do, sort it out later, do it now attitude? Or those that work hard to make sure it's right.
Strange how my wife accuses me of just ploughing on regardless, without any planning or thought.
I'd rather just go on holiday without any research other than knowing I have the right injections and visa, than plan every single day in advance.
When it comes to financial matters I've been accused of being mean. I find it easier to have nothing spare, then you can't waste it.
Finances = No risk please.
Everything else = What's the point if you don't have some risk?
Commuting to work on the pedal bike is probably the biggest daily risk I enjoy. For work the past 12 months has been the longest time I've gone without changing my job plan since starting work back in 2000s.
Everything else = What's the point if you don't have some risk?
Commuting to work on the pedal bike is probably the biggest daily risk I enjoy. For work the past 12 months has been the longest time I've gone without changing my job plan since starting work back in 2000s.
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