Hedging - The 4th Strategy for Managing Risk

Our fourth strategy for lurring risk is hedging, which is another way of saying offsetting your risks. The important hedge most people can make is to insure that you aren't investing in the company you work for. Your annual income is already very linked to your employer's success. So it's a good idea to have your wealth linked to something else, anything else. By putting your savings elsewhere, you'll miss out if theCompany you work for grows a lot but you'll still get the benefits of working for a successful company through raisors and promotions.