Rate of Return and Risk

"When everyone feels that risks are at their minimum, over-confidence can take over and elementary precautions start to get watered down." -Ian Macfarlane

The goal of investing is to create the largest rate of return for the lowest amount of risk. In theory this is straightforward and easy to understand. In practice it can be confusing. Rate of return refers to how much money you are going to get in return for your original investment. This is the most important result of investing. Rate of return is determined by the increase in asset value and any money received while holding on to that asset. Rate of return can be determined by using the following equation:

Capital Gain (gains-loss) + Cash Received (dividend or interest) / initial investment = Return Rate

Rate of Return and Risk

Risk refers to the likelihood that you will lose your money. As an investor restricts risk, they also restrict the amount of return they can receive on their investment. Probability should play an important role in choosing your investments. Probability refers to the likelihood that something is going to happen. When looking for investment vehicles consider the probability, based on risk, that you will get your money back.

There are several low risk options which are perfect for those folks who want to invest but are not interested in high risk. The most low risk investment you can make is in U.S. Treasury Bonds, which guarantee a consistent rate of return. At the opposite end of the risk spectrum, you have high yield investments. This type of investment offers a huge rate of return, sometimes over 20%, but they also force you to risk your original capital. If things go poorly, you will lose your whole investment.

Obviously, if you want to be successful in investing you need a way to manage risk. A great way to measure the risk of a particular investment option is to look at the worst, likely, and best case outcomes. If you can live with the worst and likely outcomes then it is probably a good investment.

If you are interested in investing but overwhelmed and confused about determining risk then find yourself a local financial advisor or brokerage firm that help you determine what risk level is best for you. Another way to determine risk is to look at a stock's past performance. How a stock did in the past is a good indication of how it will do in the future.
Remember, all investing has risk associated with it. As uncertainty of success increases so does risk and potential profit. The goal of all investments is to maximize return and minimize risk.

Rate of Return and Risk
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5 Tips for Enriching Your Child's Education

You have to feed your kids good stuff. Not just good food, but good life experiences too. I love homeschooling but realize it is not possible for every family. Lately I have been getting emails of admiration from non homeschooling Moms who want a little help on how to supplement their child's education. I love it! I thought I would write down some of the things we have done over the years as a jumping off point.
First I would recommend taking stock of were your child is, physically, mentally, relationally, emotionally, spiritually and academically. Make a list if you have to. Maybe we get things turned around when we hyper focus on academics and leave other very important formational stuff out? Let the Lord lead you, on things that you see that your child needs. Do they need a good dose of habit training, how to do chores or how to take care of their hygiene? These skills are as important as academics. Do they need to read some deep literature, other then fast food type stuff that is typically marketed to early elementary readers? If you have never read a classic to your child or if they have never read one to themselves, then I would say that is something you need to work on.

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You get the idea. Only you will now that for each of your children and if you don't know, maybe you are just too busy or too over committed and you need to slow down a bit so you can take stock or where you and your littles are at. I would recommend you intentionally add a few things into your family rhythm to help give you some well balanced nutrition for you growing brood, weather home educated or not.
Reading with your child is a major buzzword right not, but what your read is rarely talked about. Pick a family read aloud. Stretch and pick a classic or even some Shakespeare. Charles and Mary Lamb make a great version just for kids. Living literature will take you and your child into deeper things like geography and history and science. These books are simply outstanding and every family would do well to read through them together. We have gone through seasons of this on and off in our family and are right now back in this season. Read a chapter after dinner, or pick one night a week to read out loud to each other, everyone taking turns at reading out loud. Make your children earn video game or TV time by reading 3 for 1. For every 3 minutes they read, they can earn one minute of TV or video game time. It works for us, umm when I stick with it. Instead of filling your house with the sound of a TV on, play some music quietly in the background.

Think through some practical things you can do with your kids.
Take them to the post office and have them do the whole deal, buy the stamp, address, and mail the letter, use the automated kiosk etc. Go to the hardware story and but the supplies for a family project and involved them in actually checking out and paying for the items. Involve them in your whole life. Even the simple things can be a learning moment. You don't have to be teacher or a school to schedule a field trip. You can make a few phone calls in your local area and set up some family things for you all to do together.

5 Tips for Enriching Your Child's Education

Okay, I know that is technically eight but I was on a roll. Life is short, and there are so many things you can do and accomplish when your kids are big and have flown the coop. So fight the urge to have it all and do it all right now. Take a little time, in whatever way you can, to add a little richness to your child's education today.

5 Tips for Enriching Your Child's Education

Amber Bishop is a photoshooting, homeschooling, mostly sane Mother of three crazy kids. For more great tips, tricks and ideas, you can find more of her stuff at http://www.homeschool-diva.com and her portfolio at http://www.amberbishopphotography.com.

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