Re: Unique financial nuggets
Great question. I will answer with examples.
First everyone should have at least 6 months worth of living expenses in liquid investment. That is bank CD money market etc. That has 0 risk of going down.
On top of that us say I have Rs 1000 worth of savings. First, I need to select or fix my ASSET ALLOCATION. If it is properly DIVERSIFIED, not all assets will go down at same time. Typically stocks and bonds do not move together. Bonds - especially US treasury bonds or other government bonds are considered safer than stocks. In the sense you will ALWAYS get ur money back at the end of its term. So 10 yr bond u get money back after 10 yrs.