Back in the first topic on risk, we talked about how a diverse portfolio was the key to managing risk. While you might feel more comfortable having mostly low-risk investments, at some point in your life, you're going to have to put your money in investments with a higher risk in order to have any chance of creating real wealth, or even just beating the rate of inflation. Higher risk offers the possibility of higher rewards, but how does that play out in the real world?

What is the Rule of 72

In order to illustrate how the higher risk offers higher rewards, take a moment to complete this brief interactivity, which describes the Rule of 72. Click the player button to begin.

Medium – High Risk Investments

If you are looking to diversify your financial portfolio to include some medium and higher risk investments, you have a number of options. In this interactivity, you will examine some of these investments, as well as the pros and cons of each. Click the player button to begin.

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Buying and Selling Investments

Now that you know about some of the most common investments, you may be curious how to buy and sell them. In this interactivity, you will examine some of the different ways you can buy and sell investments. Click the player button to begin.

View a printable version of this interactivity.