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Perhaps you need to consider the various categories of risk. I am no expert, but several that are relevant to you spring to mind.

See my diary on Risk risk.

I'm reading Fabozzi's Bond Markets, Analysis, and Strategies. In it, there's the following list of sources of risk for bond holders:
Bonds may expose an investor to one or more of the following risks: (1) interest-rate risk, (2) reinvestment risk, (3) call risk, (4) credit risk, (5) inflation risk, (6) exchange-rate risk, (7) liquidity risk, (8) volatility risk, and (9) risk risk.
Risk risk? WTF is that? A typo?

A standard way of hedging risks is to diversify.

But systemic risk is not diversifiable.

The question is, what does JD want to do with his money? It appears that one answer might be to turn it into an annuity, and protect that annuity against inflation. But he also wants to buy a house or find other profitable uses for the money to make it "grow". But if you don't know what you want the money for, why do you want to make it "grow"? To have a bigger pot you don't know what to do for?

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Thu Mar 25th, 2010 at 05:25:38 AM EST
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