Why take a risk with your money


Problem:

Work out how many years (10) to go before you retire, now look back the same number of years, and see how much the dollar has fallen in value from then to now. The US Government has the statistics.

1. Why take a risk with your money?

2. Find the interest paid on risk-free US Government 5 year bonds and pretend you want to invest $10,000.

3. Find the current rate of inflation.

4. Your tax bracket is 40% at the end of one year how much will you have made or lost?

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Finance Basics: Why take a risk with your money
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