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"Investment" by definition is a way of storing more money than you can afford to lose. Anything else isn't an investment. There are plenty of words for transac
by oh_my_goodness 4y ago
"Investment" by definition is a way of storing more money than you can afford to lose. Anything else isn't an investment.
There are plenty of words for transactions that should be limited to money you can afford to lose: Las Vegas, lottery tickets, options, crap, toxic waste, street drugs.
- astrange 4y agoIt’s perfectly reasonable to keep money you’ll need in the next 10 years in a slightly risky investment (like 60 bonds/40 stocks) even if you couldn’t afford to lose 100% of it. It’s more sensible than keeping it in cash for that long. Money in risk-free liquid form is guaranteed to lose to inflation.
- oh_my_goodness 4y agoSure. Exactly. That is investment. How many people would say "don't put more money than you can afford to lose into a diversified mix of 60% bonds and 40% stocks"?
- Ekaros 4y agoI don't think there even is risk-free way to keep money. Physical money can burn, money in bank is insured up to certain limit or government can simply decide to bail-in it...
- oh_my_goodness 4y agoI guess since nothing is risk free I should just put everything into crypto. [Sarcasm notice: This is sarcasm.]
- astrange 4y agoThe limit on FDIC insurance isn’t a problem, you just get more than one account.