Home
>
Personal Finance
>
Risky Business: You May Not be as Daring as You Think

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished college. Then my financial adviser (a.k.a. stockbroker) had me take a test to measure my tolerance for risk. He said, there were no right or wrong answers, but I knew better.

Once I had taken a personality test when I was in career transition (a.k.a. unemployed). My counselor had said the same thing, "There is no right or?," but when he told me my score he noted it was on the edge of the bell curve - the wrong edge. My need for acceptance by others was high; so high that I could not confront a taxi driver who gave me zero change from a $10 bill, on a $4.50 fare.

I was very leery of taking this "risk-tolerance profile." As I expected the questions showed that I was a total "wuss." (In Pittsburgh, if you're 15 and a guy it means you always cover your ears in winter).

A typical question; if your portfolio dropped 21.8 percent in one year, would you:

a. Sell all your equities?

b. Sell 1/3 of your equities and buy intermediate-term, tax-free municipals?

c. No change, staying the course?

I selected 'c' not because I believed in my strategy but out of total fear.

And yet deep down, when it came to the important things in life I felt that I was a risk-taker. I could be as much a risk-taker as an F-16 fighter pilot or a New York City undercover cop. However, no test ever asked the real important questions of life, the kind of questions that affected my daily reality. Questions like:

You have to drive to the airport. You get in your car, turn on the engine, and the gas gauge is on "E." Do you: a) immediately fill up, b) drive to the airport but don't put on the air conditioning, or c) drive back and forth without ever looking at the gas gauge again. OK, now lets add some real risk to the above question. What is your answer assuming your spouse is in the car with you?

Now let's deal with food instead of hedge funds. For example, for breakfast you like your bagels dark but definitely not burned. You've just put a bagel in the toaster, and it is just not dark enough. You put it in the toaster again, just nudging the dial to the optimum position, taking into consideration the heat already generated and the level of darkness around the edges of the bagel. As you wait for your bagel, do you: a) stand there staring at the bagel, b) let the dog out, c) get your newspaper from the driveway and check the Knicks score.

How would your answer change if it were your last bagel?

Now lets deal with the most risky part of life - relationships: Its 11:30 p.m., Thanksgiving Eve; your wife is exhausted, having cooked the 24-pound turkey and the rest of the food. She asks you to place the turkey in the fridge in the basement. She reminds you of last year's fiasco when you forgot to refrigerate the bird. Do you: a) do it immediately; run upstairs to report to her that you completed the task. You then return to the basement to ensure that you have closed the fridge door, b) leave a note for your teenage son to do it when he comes in after midnight.

Now for extra credit. You get a call from your high-school sweetheart. She asks to meet you for coffee in an hour. Do you: a) decline and tell you wife about the call, b) decline and not tell you wife about the call, c) ask your son if you can borrow his mousse. You get the idea. On this kind of test, I would score very high.

I figure once I fine-tune my questions, I could use this kind of questionnaire to screen professionals trying to give me advice. For example, my internist wants me to come in to review the results of my prostate exam and to discuss the different options and the risks involved with each course of action. I may surprise him and ask him to complete my questionnaire first. I want to see what kind of risk-taker he is.

P.S. My stockbroker just took my exam. He failed. I am looking for a new broker. Any recommendations?

Hesh Reinfeld writes a syndicated business humor column. You can read additional examples of his columns on his website: http://www.heshreinfeld.com Or contact him at http://www.heshreinfeld.com

maide service in Park Ridge ..

In The News:

Scammers create fake Evite invitations that mimic legitimate event emails, requiring users to verify senders and use antivirus software for protection.

The new Apple Watch hypertension feature passively monitors blood pressure patterns over 30 days using sensors to detect chronic high blood pressure signs.

Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.

New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.

The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.

Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.

TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.

Risky Business: You May Not be as Daring as You Think

Personal Finance