Wise investing depends heavily on risk management. That’s what asset allocation is all about. And it’s what using an objective, rules-based strategy is all about since it reduces the likelihood of letting fear get the best of you.
But risk management is even more important in other areas of our lives. That point stood out from a recent report by the World Health Organization. The group is predicting a dramatic increase in cancer cases globally, from 20 million in 2022 to over 35 million in 2050 — a 77% jump. Especially noteworthy is the organization’s assessment that 30-50% of cases could be prevented by modifying or avoiding various risk factors, including many that are well within our control, such as diet, exercise, maintaining a healthy weight, avoiding tobacco use, and limiting alcohol use.
Doing ourselves no favors
I still remember a dramatic statement made years ago by gerontologist Ken Dychtwald. He said that at an earlier time, if some dread disease made its way to your village, you had a high likelihood of dying. Today, with significant improvements in health care, he said the leading cause of death is suicide. It was his way of saying far too many people are killing themselves with their bad diets, lack of exercise, and stress.
The World Cancer Research Fund agrees, calling the level of naiveté about diet’s role in cancer “alarming.” Whereas many people believe cancer is largely an inherited disease, the National Institutes of Health says only 5-10% of cancer cases can be attributed to genetic factors.
Of course, cancer isn’t the only health problem where personal habits often play a significant role. So are cardiovascular disease, diabetes, and more. In many cases, these maladies could be prevented through better eating habits, such as dialing back our intake of sugar.
Speaking from the mirror, not the soapbox
A number of years ago, my doctor expressed concern about my cholesterol trend line and suggested that it might be time to consider taking a prescription drug. I hated that idea. So, I asked him to give me six months to see if I could turn things around. He was skeptical but agreed to give it a little more time.
Right away, I went from dabbling in running to running regularly. And, I made some changes in my diet. Six months later, my doctor was surprised at my progress and said he no longer saw a need for meds.
Since then, I’ve replaced much of the running I used to do with biking. I’m not fanatical and I’m not fast, but I have been pretty consistent. My family has made other changes as well. My wife has always been a stickler for making sure we eat our veggies, and while we haven’t gone completely seaweed and sprouts, we rarely eat red meat.
I still have a sweet tooth — and probably take too much comfort from reports about the benefits of dark chocolate! It’s an area where I have more improvements to make.
What about you?
Managing risk in our investment portfolio is important. But it would be sadly ironic to succeed in that area only to fail at managing our health risks and cut short our time with those we’re investing to support and enjoy.
How well are you managing the risks in your “health portfolio?”
