Funds strategically reserved for use in your future, as a source of funds for a capital project or for retirement, are kept in an account called a reserve account. Reserve accounts form the command station of the Steady State Principle, uniting the pieces of your financial model and often composing a large part of the Store of Intrinsic Value. This is the place where larger amounts of funds have high accessibility and usability compared to other accounts.
A risk is an uncertain event, which may be classified as positive or negative depending on the most likely outcome upon which it is based. Undertaking a profitable business venture, weathering a storm without insurance, both of these are risks one might take. Risk is commonly viewed in quantitative terms as a measure of dispersion of returns in a population about the mean return of the population.
The Flow of Money
There exist high-risk and low-risk areas in finance in which you have control to direct the flow of money. These areas are both extremely valuable for you. If you choose to work with WBC Risk Management Inc you will understand the types of accounts contained within each of these areas. Money flows by itself to some areas, but a well-intentioned plan is required to channel flow to either the high-risk or low risk-areas. Your reserve account is placed in a low-risk area of your plan and serves as protector for accounts in the high-risk areas.