Date: Thu, 4 Jan 2007 15:57:33 -0600
From: "Don" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Should I put my money in mortgage?
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"kastnna"  wrote in message 
news:1167865096.415359.111680@s34g2000cwa.googlegroups.com...

> I stand by my statement that neither you nor I can decide which
> "investment" better suits the client. That can only be decided by him.
> You are imposing a highly risk averse profile on the client that may or
> may not fit his financial goals. I am not suggesting he take the other
> extreme and invest in a high risk vehicle.



Agreed, risk tolerance is important. I am objecting to a blanket comparison 
of "5% in CD's" to "10% in stocks" without considering anything else. If 
someone understands risk, realizes that a 10% return in stocks refers to a 
long historical period and that during shorter periods the return can be 
either positive or negative, has a long investing horizon, has little or no 
consumer debt, certainly no credit card debt, and knows that when someone 
says "15% return guaranteed" the risk is enormous, then certainly stocks are 
a good choice for some (but not all) of the investment money. To put it 
another way: Don't invest more money than you can afford to lose in anything 
risky.