Lehigh Valley Woman – Finance Section – April/May 2013
by Laurie A. Siebert, CPA, CFP®, AEP® Vice President, Valley National Financial Advisors
Have you ever asked yourself?
I asked my 16 year old son, who is taking an investment class in school, for an idea for this issue and he said “write something on risk tolerance.” Risk tolerance has never quite excited me because I tend not to take risks that I haven’t fully investigated. I really have to have my energy up for it. But I further considered, was it energy I lacked or was it something else? Could it be fear of taking risks? What if we had nothing to fear, how would we behave? We have recently learned that Facebook has posters around their offices and one of them asks, “What would you do if you weren’t afraid?”
What can you do with that motivation?
Sheryl Sandberg, Chief Operating Officer of Facebook, took it to heart. She says that she wrote in her new book that if she wasn’t afraid, she would speak out more on behalf of women. She is calling on other women, as she puts it, to “lean in” and embrace success. In an interview with NPR books on March 12, Sheryl Sandberg told NPR’s Renee Montagne that “women have ceased making progress at the top in any industry, anywhere in the world.” Sandberg, herself, is 43, with two Harvard degrees and has done well in making it to the top. Now, an author, of Lean In: Women, Work, and the Will to Lead. She continued to say on NPR that in the United States, women hold 14% of top corporate jobs and 17% of board seats and that hasn’t changed for 10 years Women are more educated today and more in the workforce. Why aren’t women getting to the top?
Would not being afraid change anything?
If we weren’t afraid, would it really change how we make decisions that would advance our careers? Maybe fear is not the reason more women aren’t at the top. Maybe we don’t have the energy or maybe those positions don’t give us the balance that we need and want in our life. Traditionally, we think women are better multi-taskers and it takes laser focus to get to the top. I think we spend so much time thinking about all the “things” that we need to manage that we don’t take the time we need to focus on the goal. So let’s be inspired by Ms. Sandberg. Let’s take the time required to decipher what is happening around us, to discover what is happening to us. It will take laser focus.
What do you think about when someone asks what your risk tolerance is?
To end with the beginning: let me go back to risk tolerance. I mentioned that I tend not to take risks that I haven’t fully investigated. Understanding that the unwillingness to take risks could come from a sense of fear, a lack of knowledge or a lack of focus might help us to develop a tolerance for risk. When we make important decisions in our financial life, use laser focus to grasp our motive for our action. Be aware and in the moment. Recognize if you are acting out of fear, lack of knowledge or lack of energy and then move to the next step. If you are simply acting out of fear, ask yourself, what would I do if I wasn’t afraid? If you are acting out of ignorance, ask yourself, what can I do to be better educated about my options? If you are acting out of lack of energy, get focused on the task at hand and not the world of responsibilities you have.
We need to support each other. We need to “lean in” to the risks. Risk tolerance can apply in our career decisions, our personal life and our investment decisions. That’s another whole topic. If you want to understand risk tolerance in your investment life, we can have that conversation too. I would be happy to educate you so you have more energy to work on overcoming your fears. More information at 610-868-9000.
In summary
Let’s be aware of not only what is happening around us but also to us. Ask the following questions, daily:
- What would I do if I wasn’t afraid?
- What would I do if I had the knowledge?
- What would I do if I had the energy?
Be proactive, not reactive and make the best of your choices.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein. Valley National Financial Advisors is the marketing name for Valley National Group, Inc. and its affiliates. Securities offered through Valley National Investments, Inc member FINRA, SIPC, 1655 Valley Center Pkwy, Suite 100, Bethlehem, Pa 18017 (800) 383-8297.
