A Simple Risk Observation

Have you noticed your male teenagers think they are bulletproof? I used to think they were pushing the limits to see what worked and didn’t. Turns out to be not true.

The brain is still forming

There is a part of the brain that provides an estimate of future outcomes based on current and intended activity. In adults it helps with the ready, aim, fire decisions.

In young males it is not even there. It forms around age 20.

Their paradigm is ready-fire-aim. Sometimes it doesn’t work.

For older people

There is a different rule that seems common. It works like this.

Create a scale from 0 to 10 where 10 is completely risk tolerant like a teenager and 0 is completely intolerant.

Create a similar scale for experience. 0 is no experience, 10 is very experienced.

The rule

The total of risk tolerance and experience is constant.

10 risk tolerant usually implies 0 experience. At the other end of the scale are investors who have been burned many times. They tend to own short term treasuries.

The scales are bit situational and don’t translate from one person to another. Some people use the experience of others to terrorize themselves. Experience can come in many ways.

Some people with a lot of experience become more risk tolerant rather than less because  they understood their experience and learned from it.

Notice how the rule works.

People who use it to advance, notice that experience teaches little. Only carefully examined experience teaches. Without the examination you have only the cost.

If you are going to pay the price be sure you get the value.


I help people have more income and larger, more liquid estates.

Call in Canada 705-927-4770, or email don@moneyfyi.com 

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