Thursday, September 25, 2014

Taylor Bye, Chapter 7, Question #4

In the 2009 film, The Blind Side, you hear Sandra Bullock's voice over as Leigh Anne Tuohy states this: "As any good housewife knows, you pay the mortgage first and then the insurance." She applied this metaphor to the wages of the quarterback and the linebacker. This anecdote is going somewhere, I promise.
Wheelan explores the risks that are taken when investing in any financial market. It's the idea that yes, you have to spend money to make money but you also have to be smart. Use some common sense! Always prepare for the freaky and unfortunate. Your mortgage is one very big investment that can be devalued very easily, as some investments made in the financial market. But even if your house does get greatly damaged or totally ripped apart, you have insurance that can help compensate. The problem of risk is solved by always making sure you have a back-up plan...insurance.

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