How Risk Aversion Affects Those in the Financial Industry

How Risk Aversion Affects Those in the Financial IndustryHow Risk Aversion Affects Those in the Financial IndustryRisk aversion is the manifestation of an individuals general preference for certainty over uncertainty. Such a person will almost always attempt tominimize the magnitude of the worst possible outcomes to which he or she might be exposed. Risk aversion is highly influenced by an individuals experiences, particularly the economic environment they experienced during their childhood. People who grow up in different economic climates tend to manage money very differently. How Risk-Averse People Behave in the Work Force A risk-averse person might prefer to work as a low-paid employee with a great absprache of job security rather than strike out on her own and become a self-employed entrepreneur- even if an entrepreneurship would likely result in earning a large sum of money. With the opportunity for mora income comes the risk of losing her investment in time or money. Techn ically, it could go either way. Risk-averse people tend to bet on sure things. Theyre bedrngnis gamblers, even if rolling the dice just a little might result in greater rewards. Many risk-averse people make choices by putting excessive weight on the worst possible scenario in a situation, far beyond the actual probability that such a scenario will actually occur. Likewise, a risk-averse person would prefer a low but sure rate of return when investing her money, such as that provided by a bank savings account or a certificate of deposit rather than attempt a much higher profil rate of return on equities. After all, equities are highly variable and can potentially provide a negative result. Risk Aversion in the Financial Industry Financial advisors, financial planners or insurance sales agents are all examples of financial professionals who must understand their clients as well as possible in order to best serve them. Just understanding the time and place in which a client was bor n can offer useful- although hardly infallible- insights. These insights can aid in client retention because a risk-averse individual will most likely go elsewhere if they feels pushed or pressured to take an action that they do not feel comfortable with. The goal is to help them within their own personal constraints. Examples Consider a child who never knew for certain when they would eat again compared to one who was lavished with the most recent and expensive fads in toys. As an adult, the first child would most likely want to be very sure where their next meal was coming from as an adult. Hed want to know that the money for that meal was safely in the bank, and they would not risk it on a situation of uncertain outcome even if the odds of success were in their favor. Another classic example is people who grew up during the Great Depression of the 1930s. As a group, these people tend to be very conservative about money and very risk-averse about a job or career changes. Many of them avoid stocks, given memories of the Great Crash of 1929. But many spendthrifts grew up during the Great Depression, too. Many siblings develop radically different attitudes about money even when theyre raised in identical circumstances. A more recent and famous example would be that of hedge funds, who place bets against their main holdings in a process called contrarian investing. Most funds operate on an 80-to-20 ratio, where 80 percent is their core holding, and 20 percent is used to hedge their bets.

Fatigues to Pinstripes Interview and Resume Tips to Land Ex Military Jobs

Fatigues to Pinstripes Interview and Resume Tips to Land Ex Military JobsFatigues to Pinstripes Interview and Resume Tips to Land Ex Military JobsHow to land a civilian or contractor job as ex militarySizing up the leap from a military career to the private sector? Take some tips on how to land ex military jobs from Mark Henderson, a retired Army colonel and one of the founders of Palladian International, an executive-search firm based in Waynesboro, Va.Bottom line Dont narrow your search too quickly, and dont try too hard to translate your experience into civilian terms.Know what you want and make sure you know whats out there.A lot of people leaving the service, particularly retirees, focus on the defense industry for employment, Henderson said. Thats valid, but they overlook the fact that theres a commercial world out there where the sky is the limit. They sometimes overlook what they could go after if they looked at the commercial world and thought about what they bring to the p late.Translate into terms businesses will understand But dont overdo it. When it comes to building the resume the biggest thing is translating military experience into commercial words, Henderson said. And that goes beyond the acronyms - you have to convert what you did in each role you had to business terms. However, he said, dont push your luck trying to convert military titles to equivalent corporate ones. (A company commander is not a CEO.)Dont just list responsibilities sell your accomplishments.Just listing off the responsibilities you held wont explain to a potential employer your value to a business, and it wont set you apart from the crowd. To do that, you need to talk about what you achieved, in business terms.In the military, were taught to be humble, Henderson said. But you need to explain things by accomplishments - how you innovated. Everyone in the military has a story like that.An interview goes both ways.Preparing for an interview means doing research on the co mpany youre interviewing with and being prepared to ask questions yourself that show youre prepared. An interview is a lot mora detailed than standing up and answering questions, Henderson said.A frequent mistake in interviews is failing to follow through on telling your story about your accomplishments. Many candidates think that if they put it on their resume, thats good enough, Henderson said. Be prepared to talk about your achievements, and tell your story in a way that resonates with the interviewer.

Customize this Outstanding Sample Insurance Resume 6

Customize this Outstanding Sample Insurance Resume 6Customize this Outstanding Sample Insurance Resume 6Create Resume I am seeking a career which offers room for professional growth and advancement, continued challenge and change, and stable financial security.12 years experience in sales.6 years experience in insurance.Current Washington State Insurance license for Property, Casualty, Life, and Disability.Proficient with Microsoft bro programs.Strong organizational skills.Dedicated to excellent customer service.Achieves tasks quickly and efficiently.Motivated.Creative and innovative.Professional ExperienceSymetra Financial, Bellevue, WAMay 2007- PresentSales Support RepresentativeResponsibilities Respond to inbound calls/faxes/emails from producers selling Symetra products, assisting them with product inquiries, illustrations, status of pending applications, and requests for sales literature. Handling internal inquiries from various departments, such as New Business and Underwritin g. Problem solving and research on behalf of Distributors. Placing outbound calls to inactive Distributors. Recognizing and forwarding sales leads to Internal Wholesalers.State Farm Insurance Carol Flores Agency, Bellevue, WAJune 2004 May 2007Account Executive/Outside SalesResponsibilities Outside marketing and sales within the Seattle metro area including (but not limited to) cold sales calls, walk-ins, business events and forums, networking luncheons, and referral sources. Prospecting existing clients for additional lines and referral sources. tafelgeschirr and follow-up on existing and pending client accounts. Annual insurance and financial review appointments with existing clients. Training new staff and developing efficient office procedures.State Farm Insurance Loreen Mason Agency, Carbondale, ILSeptember 2001 June 2004Insurance Sales RepresentativeResponsibilities Prospecting existing clients for additional lines and referral sources. Service and follow-up on existing an d pending client accounts. Managing client payment plan accounts. Training new staff.Bank of Illinois Kroger Branch, Mt.Vernon, ILOctober 1997 December 2000Financial Service RepresentativeResponsibilities Opening new deposit accounts for clients. Approving and closing personal loans for clients. Prospecting clients for additional accounts and referrals. Overseeing the daily balancing of branch vault and teller stations.APEX Telecommunications Mt.Vernon, ILJanuary 1995 September 1997Sales Team LeaderResponsibilities Hiring and training new staff. Quality assurance monitoring of outbound and inbound sales calls made by team. Developing team building and motivational strategies to encourage team in achieving goals. Tracking and reporting daily sales goals specific to team and project to upper management. Maintaining daily schedule for staff. On-going mentoring and evaluation of staff.EducationJohn A Logan Community College, Carterville, IL 2002Southern Illinois University, Carbond ale, IL 2003 2004ReferencesReferences are available upon request.Customize Resume