New Reminders: Risk

Sometime in the early 1970s, I became aware that I had no credit rating since, at that time, all credit assessments were based on the husband’s income and credit history.  This did not seem right to me because it meant that should something happen to my husband, or if we were to be divorced, I could not borrow money or buy things on credit.  By that time, I was working as a teacher and I had my own money, in a bank account in my own name.  I had taken out a credit card in my own name as well.  I was contemplating investing some money I had inherited and to do so in my own name.  I consulted an insurance agent, who billed himself as a financial advisor.  He asked me to fill out a risk assessment survey to help him assess my level of risk tolerance.  We discussed what my long-term goal was for the money I wanted to invest, and I told him I wanted to invest in a high-yield money market account.  However, when he sent me the papers to sign, they revealed that he was actually intending to invest my money in bonds, not the money market account I had requested.  That indicated to me that he had not used my risk assessment form in which I had indicated a high-level of risk tolerance, but had made a different calculation and determined that I should “play it safe”.  I did not accept his decision.  My husband contacted a different agent with the same company, and filled out the form using exactly the same information and risk factors I had used.  The only difference was that he identified himself as a male.  That agent used the same information, but when the paper work came, he had set up an investment in the very money market account I had requested.  While I understood the reasoning based on the odds that many women dropped out of the workforce, at that time to raise a family, I had waited until my children were in junior high and high school to go back to work and was in it for the long haul.  We changed insurance companies, and I invested my money elsewhere.

While it is prudent to know our risk tolerance, in order to avoid making mistakes, we also need to know what that tolerance is based on and how secure we feel in the risks we are willing to take.  We need to recognize the need to step out of our comfort zones when the rewards are worth the risk.  Too often we let fear stand in the way of acting boldly and creatively in how we conduct our lives.  As Rick Warren is quoted as saying: “Fear is a self-imposed prison keeping us from becoming the person God intended us to be.”  This does not mean that we should always throw caution to the wind and leap before we do our due diligence in assessing each situation, but it does mean that when boldness is called for and we have determined that we should move forward with steps we know are the right things to do, that we do not let our fears and hesitations trap us into inaction.  Courage is not the absence of fear, it is knowing that we can overcome our fears with God’s help and the Holy Spirit’s guidance.

First, we need to pray that the actions we are contemplating are in accordance to God’s will, that He is with us, and that we can do the fearsome thing.  It is called replacing fear with faith. Isaiah 41:10 says: “So do not fear, for I am with you; do not be dismayed, for I am your God; I will strengthen you and help you.” Philippians 4:6 says: “Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God, and the peace of God… will guard your hearts and your minds in Christ Jesus.” and 1^st John 4:18 says: “There is no fear in love.  But perfect love drives out fear.”  These verses tell us that we can choose to believe in God’s promises and trust in His plans, even when facing uncertainty.  They reassure us that we can choose to make a conscious decision to live by faith, applying God's Word to our daily lives and refuse to let fear control us.