8. Protection In this episode, Michael discusses the concept of an efficient frontier and uses a marathon race as a metaphor to help you understand it. There is a risk for every return, the more potential return you're going to receive. The more potential risk you have to take on. If you have a short-term horizon, if you are fearful that something bad may happen to you financially in the next call it five years, you want to make sure you have a certain amount of money invested in very safe vehicles. [00:00:49] Now nothing is ever guaranteed, but you want to own high quality. Fixed income, high quality equities high-quality real estate. You want to be diversified in the sense that historically speaking the volatility is not drastic because you want to be able to pull that money in an emergency and not worry about having less than what you put in. [00:01:16] Again, there's no guarantee, but if done properly, you should be in a position where it almost looks like paints dry. It's...