Understanding the Difference between Risk and Volatility in Retirement Planning

Understanding risk and volatility is important before diving into the world of investing and preparing for retirement.

In this solo episode, I'll share with you the difference between risk and volatility using my experience watching my two kids alone for five days. This made me realize that parenthood is a balancing act between allowing children to grow and try new things while not exposing them to catastrophe, just as investment and retirement are.

Risk and volatility are not the same and should not be interchangeably used, and by understanding the difference between the two, retirees can make informed decisions to ensure an optimal retirement.

I’ll also share how you can determine your personal risks to be able to find stability when it comes to risk and reward.

Highlights

02:48 - Observing risk-taking behaviors in young children from a parent's perspective

03:56 - Mitigating risk and volatility through parenting

7:09 - Importance of finding the balance between risk and reward

8:49 - What is volatility in investing?

12:47 - Analyzing volatility and the VIX index

13:56 - The difference between risk and volatility and how it can help your wealth and health

14:56 - Exploring the types of risk in investing

21:50 - Strategies for mitigating volatility in your financial plan

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DISCLAIMER: The information provided in these episodes is only to be considered helpful hints and education. Nothing said or shown is to be misconstrued as specific tax, legal, or investment advice. Consult with your tax, legal, or investment professional before acting on anything you see in these videos.

​​Investment Advisory Services are offered through ProPath Financial, a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed in this podcast should be viewed as investment advice.