THE SAVAGE TRUTH ON CHICKEN MONEY
Nest Eggs Need Some Safety
Now more than ever, people are placing safety ahead of risk. That’s where “chicken money” comes into the picture. We all have a certain percentage of our savings that we absolutely cannot afford to lose. But before you jump to the conclusion that the best way to handle your money these days is to consider only the safest investments, let’s put this concept into perspective. First, not all so-called “safe” investments are completely without risk. And second, having some chicken money can give you the resolve needed to ride out the volatility in other investments, designed to bring you growth in the long run.
Making Money Decisions for Bulls, Bears, and Chickens
Bulls think prices are going higher, and they can give you good reasons for buying now—before prices rise. When you hear a bull talking about buying, it’s hard to remember that there might be a risk involved in this investment. On the other hand, the bears seem like pessimists. They can give you many good arguments for selling out and staying out. They point out the negatives in the market or in the specific investment, and are fond of telling you how you could lose your hard-earned money. Listening to both sides of an investment argument between the bulls and the bears is like watching a tennis match from midcourt.
Then there’s the third category—the chickens. The mantra of the chicken money investor is: “I’m not so concerned about the return on my money ...