Risk is generally defined as return volatility, or degree of ups and downs of returns. But there's more to risk than volatility. Risk and long-term reward are generally related. Risk is chance that your actual return will be less than you expected.

People sometimes think that a good return can be achieved with little or no risk. Unfortunately, that's impossible. To achieve your objectives, you need to assume certain risks and avoid others.

Your ability to handle risk is related closely to your individual circumstances, including your age, time horizon, liquidity needs, portfolio size, income, investment knowledge, and attitude toward price fluctuations.

What's highly risky to one individual may be no problem to another. Short-term fluctuations are not that relevant for long-term investors who have discipline, patience, and understanding to deal with them. Stock funds are actually less risky than money market funds for those with long time horizons.

Well-informed investors are far less likely to let risk get best of them. Those who understand various elements of risk are better equipped to enjoy a profitable long-term investment journey!

3. PLAYING IT SAFE Tax deductions can be very tricky and very tempting. The worst idea you could get into your head is to start being a risk taker when it comes to your tax return. You may not always get caught bending truth, but if you do, IRS will have very little sympathy. Deductions related to job search may also raise a bright red flag to IRS. These types of expenses tend to get examined more thoroughly than others.

So as you file your return, keep these things in mind:

1. Don't get creative and try to pile on expenses that are not truly exclusive to your job search. For example, a new suit may be needed for interviews, but its usefulness is not strictly confined to your job search.

2. Save your receipts. In case that your deductions do draw suspicion, you can save yourself a lot of pain, time, and money if you have proof of all your expenses. 3. CHECK WITH AN EXPERT. We here at Worktree.com are job search experts, not tax accountants. Before you file a return with new types of deductions, it would be smart to get professional advice. ============ CONCLUSION ============ Don't be afraid to try and save money, however, please speak to an expert if you have any questions. As long as you play by rules and only deduct legitimate expenses, you are in clear. Being out of work is an economic burden on its own. Money can be even tighter when you have to spend large amounts on your job search but these tips may help you recover a portion of this. Use those deductions to your advantage, and do it quick - April 15th is just around corner!

You can read this article directly online at: http://www.worktree.com/newsletter/job-seeker-tax-tips.html

Sincerely, Nathan Newberger, Managing Editor http://www.WorkTree.com

"Helping You Find More Jobs Faster"