Risk, Volatility and Timescale
The Meaningful Money Personal Finance Podcast
Pete Matthew
4.9 • 1.7K Ratings
🗓️ 13 July 2016
⏱️ 30 minutes
🧾️ Download transcript
Summary
Investing can be scary, not least because of the frequent use of words like risk and volatility. But these are just mechanisms to be explained and understood, just like anything else. If you understand them, you can harness them to your advantage. And that’s what I’m going to help you to do today.
Podcast: Subscribe in iTunes | Play in new window | Download
Sponsor Message
This podcast is brought to you with the help of Seven Investment Management, a firm of investment managers based in London. They specialise in multi-asset investing, bringing institutional investing techniques to ordinary people like you and me. 7IM put their name to my show and to my site because they believe in what I’m doing, trying to get decent, easy-to-understand financial information out to the world. I’m very grateful to them for their support. You can see what they’re up to at 7im.co.uk
Risk, Volatility and Timescale
Last week I said that one of the differences between saving and investing is risk. Money saved in a bank account is essentially risk-free. You know that the money will always be there, unless the bank itself goes under, which doesn’t happen that often. Investments, by contrast, have converted cash into real assets like shares, bonds, gold and property. Those things always carry an element of risk, and we need to understand how this works so that we can make the most of the opportunities which always accompany risk…
So, as usual, let’s look at what you need to KNOW first, then what you need to DO…
In this session, you'll discover:
- The four main risks when it comes to investing
- Why volatility is not the same as risk
- Why you should be very wary of averages
- Why timescale is a key factor when deciding risks
- How to smooth out risk (to some degree) with cost-averaging
- The three key methods for managing risk
Resources mentioned in this week's show
Podcast: Why Invest?
Free email course - Learn How To Invest
Join the conversation
I love to read and respond to your comments, so please do join in and share.
Question: Have you had any bad experiences when investing - what went wrong?
Share the love
If this show is of any use to you, it would help me massively if you would take the time to leave me a review on iTunes. This has a huge impact on keeping me near the top of the rankings, which in turns helps more people to find the show and to subscribe. Just click the button below:
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Hi folks and welcome to the Meaningful Money podcast Season 2, Episode 2. |
| 0:04.7 | Mark, don't do anything risky. I mean, don't take chances. |
| 0:15.6 | This is the podcast dedicated to helping you put your finances in order. |
| 0:22.0 | My name is Pete Matthew and I'm going to share with you everything you need to know and everything you need to do to secure your |
| 0:26.2 | financial future. I'm here to help you make sense of money. |
| 0:44.1 | Woohoo, here we are. Great to have you with me once again. We're continuing our season on investing. |
| 0:53.4 | And investing can be scary, right? Not least because of frequent use of words like risk, volatility, loss. But risk, volatility, these things are just mechanisms. They're mechanisms |
| 0:58.9 | to be explained and understood, just like anything else. And if you understand them, |
| 1:03.8 | you can harness them to your advantage. And that's what I want to help you do today. |
| 1:08.1 | So we're going to be talking about risk, time scale and volatility. After the |
| 1:12.6 | main body of the show, as usual, I'll look at the most recent reviews which have been left. |
| 1:16.2 | I'll be giving you a book recommendation, kind of a book this time. And obviously, I'll announce |
| 1:21.1 | what we're going to be talking about next time. But first, remember, this podcast is brought to you |
| 1:24.9 | with the very kind help of my friends at 7. I.m., seven investment management. They're a firm of investment managers based up in London, |
| 1:31.5 | who specialise in multi-asset investing, which brings world-class, institutional level, |
| 1:38.2 | investing techniques to ordinary people, just like you and me. They've been helping me out |
| 1:41.7 | for four years now, paying for things like hosting and |
| 1:44.4 | equipment, all that sort of stuff. This is as good as it is, not least, because of their help, |
| 1:49.2 | and I wouldn't want to do it without them. So please do check out what they're up to and say hi to them, |
| 1:53.9 | maybe on Twitter and stuff like that, and check out what they're up to at 7im.com.uk. That's the number 7im.com.com. Okay, last week, I said that one of the sort of |
| 2:04.4 | differences between saving and investing is risk. The difference between one of the differences, |
| 2:11.6 | between saving and investing, is risk. So money saved in a bank account essentially is risk-free. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Pete Matthew, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Pete Matthew and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.