A Message To All 20-Somethings
A 1-minute read that might change your life.
There’s a term in financial investing called risk capacity. It objectively defines the maximum threshold for losses an investor’s portfolio could take without putting them in financial distress.
Throughout your professional life, your capacity for risk will change.
When you’re old and retired, it won’t make sense to throw all your life savings into cryptocurrency because:
a.) your portfolio should be significant enough to support you for the rest of your life comfortably, and
b.) your earning capacity has been significantly reduced.
But when you’re young, dumb, and full of life, who cares if you throw all your money into dumb investments — the collective value of all your future investments far outweighs whatever amount you have saved up.
So to all 20-somethings out there, take risks.
Because even if everything goes horribly wrong, you’ll have enough time to build things back up.
