You ask Ivan:
As a small business owner, I pump most of my earnings back into the company, making it my high risk investment.
What sort of low risk investments could I make over a period of 5-10 years, just in case things go awry?
Here is my reply
With my years of dealing with small business owners, here it what I believe:
“Low risk” investments are not suitable for most business owners.
First of all, low return investments do not always imply low risk. We are used to seeing high return investments paired with high risk, and low return investments paired with low risk. However, this is not always the case. For example, if you are investing in bonds in a rising interest rate environment, you may be taking greater risks than stock investors, as rising interest rates reduce bond prices.