March 6,2014- R&R

Most people know what R&R is.  It usually pertains to rest and relaxation right?  Well, in this article we will refer to R&R as Risk & Reward.  

You might think that most of these terms are too much of “financial geekiness” but fret not, as these are really everyday lingo applicable in your daily lives.  In fact, when you were just a freshly minted graduate from college, the world seemed a little like a playground.  They say “the world is your oyster” and you can take anything you want as though you were in a buffet filled with so many choices to explore your career whether being employed, self-employed et al.



That’s the nice thing about being young and fresh beginnings.  We think we have nothing to lose.  This means we have the perfect time to explore and see what we might find.  Some go for wild and exciting things (probably travel, get into a relationship, date around) or for the most part, basically go a little outside of their comfort zones as the “risk reward ratio” seemed worthwhile.  Granted that you just simply don’t get yourself pregnant or get someone else pregnant, your life of adventure is fun by meeting different people, seeing new places and you probably will learn a lot.  This however is also the age when too much fun could be wrong too.  Watch this TED talk by Ms Meg Jay Meg Jay Why 30 is not the new 20

She called the 20s the “most defining decade of adulthood,” a period when the brain has its last major growth spurt and more than half of Americans either marry or begin dating their future partner. About two-thirds of lifetime wage growth also occurs in the first 10 years of a career, she said.

In a way, what I thought wherein my 20s, was the one that presents the littlest risk in terms of failing and choosing a career, is what Meg Jay calls a defining moment since these 10 years *20-30* will prelude your next ten years like a sequel movie.  I kinda “felt” a tinge when she said that the people we meet during this stage normally would be the ones that we will end up with relationships (love, financial et al).  I cringed coz I’m nearing the cut-off.  In any case, the point is that your 20s may present the littlest risk but also the highest upside in terms of how you’d choose that margin of safety of enough time to find who you are, what you want to do, who you want to be with et al.  It’s hard to create new friendships and more when kids enter the picture as well.  With mortgages, car payments, work responsibilities and a couple of toddlers running around the house, one can rarely think of doing a Sabbatical and getting one year’s worth of leave.  The risk reward ratio will look different.  Most will seek stability after 30s.

Because the first 10 years of a career have an exponential impact on how much money a person is going to earn. Love is the same way: Half of Americans are with their future partner by the age of 30.

“Claiming your 20s is one of simplest things you can do for work, happiness, love, maybe even for the world,” says Jay. ”We know your brain caps off its second and last growth spurt in your 20s as it rewires itself for adulthood. Which means whatever you want to change, now is the time to change it.”


Did I make you sad?  What’s the perfect age?  What if I’m past my twenties, thirties or even forties?

Truth is, there is a dangerous fixation that age matters.  You know what I think?  What the hell.    It’s my firmly held belief that just like the markets and all things, we are better off defining what risks and rewards are to ourselves and what opportunities are best for our taking.  Meg Jay has her time frame and I have my own time frame. When you consider life’s numerous choices, what’s the largest risk that you took?  Taking that flight away from the Philippines and getting yourself a new work visa to an unknown place that doesn’t speak any tinge of English?  What’s the reward?  Higher pay?  New culture?  New friends? What are you sacrificing or risking for?

People think that risk and reward only applies to the markets but it’s been with us since time immemorial.  It’s time you apply risk and reward to your daily life.

At age 27, Should you marry her or ditch her?  Should you stop the markets altogether and concentrate on your business?  Should you just do peso cost averaging and plunk in a mutual fund during times of distress? Only you can decide.  In all things, use your common sense or in this case get a 1:3 risk reward ratio.  Lose 1 point, earn 3 points.

And yet like everything else in life, we can make all the right trades in our life and yet lose in the end.  Such is life.  Chill.  Embrace risk.  Rewards take care of themselves.

Happy R&R!

Faceless Trader currently works in Wealth Securities.  She normally hangs out in a Facebook open group of the same name (Faceless Trader.)  Find her online most days and nights.  She is not paid to write any of the things.  She contributes articles free of charge.  If you want to take anything, just do so with permission.  🙂


This article is a contribution to Money-Max-Philippines1391449_1416015581961202_747588997_n

About MoneyMax

MoneyMax is the Philippines’ most comprehensive online tool for comparing financial products and services. We aim to consistently find the best credit card, broadband plans, loans, and other financial services that suit your unique needs. We continuously roll out more products and services to compare to expand the free comparison service we offer. Our bottom-line is to help Filipinos save time and money by finding the ideal solutions to their financial needs.

For more information, please visit or contact



About Abc

This entry was posted in A Little Common Cents Corner. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s