Come in Out of the Rain

Is it true we learn everything we need to know for life in kindergarten? Maybe.

While walking our dog in the park, I saw two sisters, about five and three, crouched at the trunk of a large tree. The five-year old was showing her mom and sister how to find shelter from the rain that had just started. She stood up and shouted “Mommy, I know how to do it – shelter” and she ran to the trunk of the next tree. We were walking up to her and our dog was with us. Suddenly she realized the dog was a new risk to avoid. She ran past us back to the safety of her mother.

I learned from her that:

• Rain is something to avoid (most of the time)

• Trees provide shelter

• We all seek shelter for safety

I realized risk management is to come out of the rain of financial risk. I learned that:

• Unmanaged risk is something to avoid (most of the time)

• Financial products provide shelter

• We all seek shelter for safety

The question then is how. How to manage risk. Risk management is knowing which risks to protect against. Financial products such as term deposit savings, bonds, life insurance, funds and stocks provide financial shelter.

Then which one? You may run to the next tree that you see for shelter. Or if you have no idea which to run to, experienced financial planners can explain financial products and how each protects against which risk. It helps you see the risks and how to manage those risks that you cannot and will not take. Ask me and I can help you to come in out of the rain.