Education

TIPS FOR POSITIVE FAMILY COMMUNICATION DURING COVID-19 By Michael Aurit, JD, MDR, and • We will listen carefully to Karen Aurit, LAMFT understand how each person sees the situation so we can “see the world

Families are facing some very through his or her eyes.” difficult conversations now • We will stay positive and be gentle that Arizona has re-opened. A with each other, rather than placing range of strong opinions about social blame or becoming judgmental. distancing and safety precautions may • We will acknowledge that we all cause family conflict if communica- love one another and want to be close tion breakdowns and negative emo- again. The pandemic is temporary, tional reactions go unchecked. but our family is forever. • We accept that we won’t all agree Even some spouses are split over 100% of the time. If we disagree, we best practices during the pandemic. respect each person’s right to make Enter extended families into the his or her own decisions. equation and the range of opinions can quickly become a heated blame Once you all agree on guidelines, game. Some family members would schedule a family talk. Start with rather not have any conversation at a fun activity to celebrate being this point. Some are consumed with together, maybe a virtual dance fear and anxiety. Some are focused challenge, silliest joke exchange, or on the science and support adhering perhaps a rousing chorus of “We are to CDC guidelines and social Family.” distancing protocols. Others question the level of risk or prefer to return When you begin, be prepared for a to normal, even acknowledging difficult conversation. There may be the potential for negative health feelings of frustration. Remember, no outcomes within our community. one has all the right answers in this unique situation. The whole family Family conflict is nothing new can choose to use this as a wonderful and can be overcome when family opportunity to show love and members are committed to healthy compassion even when you disagree. communication with the help of some mutually agreed upon guidelines for If your family is struggling to conversations. You could propose communicate effectively, be prepared your own version of the following to call a “cease-fire” to give everyone suggested communication guidelines time to cool off before regrouping. to ensure less conflict and better family discussions: If relationships are in danger over COVID-related issues, seek • We will be respectful of one professional help from a professional another and respect all opinions as family mediator or family therapist. valid. These professional services are often • We will make proposals about how available online and can help your to connect as a family instead of family to discuss difficult issues making demands. Family members peacefully. prefer to be “asked” if they are willing to do something compared to Michael Aurit is a professional be “told” what they should do. divorce mediator, Arizona attorney, • We will be open to compromising and co-founder of The Aurit Center whenever we can all “live with” a for Divorce Mediation. Karen Aurit solution that isn’t perfect but works is an Arizona licensed associate for everyone. marriage and family therapist, and • We will avoid interrupting as best co-founder of The Aurit Center for we can and ensure that each person’s Divorce Mediation. Learn more at voice is heard. auritmediation.com.

Risk Tolerance – Time to Change?

By Renee A. Hanson, Private Wealth Advisor Affi nity Wealth Advisory Group, a private wealth advisory practice of Ameriprise Financial Services, LLC It infl uences our thoughts around risk and ability to manage emotions around risk.

When we think about risk, we are really considering

“Should I change my risk tolerance?” This is a common question during volatile markets, albeit mostly during down markets, both on reducing and taking on more risk. Perhaps you should ask yourself “what has changed that I would want to change my risk tolerance?”

tolerance as if each of us fi ts into a category nicely. The industry regulatory body uses risk tolerance to match a portfolio to one’s ability at accept volatility. Yet few really understand what the impact is of volatility to their investments.

Years ago, I discovered that people think of performance of their investments in percentages when the trend is a bull market but look at performance in dollars in bear markets. They will report they are up 7% but will state they are down $7,000. Have you found yourself thinking the same way?

As important as the risk tolerance label of conservative, moderate, or aggressive is, so is the emotional awareness of what this means to you personally. Have you ever considered your emotional risk tolerance? Risk tolerance is multi-dimensional. Being aware of your ability to emotionally manage your behavior during market corrections should coincide with your measured risk tolerance as it applies to your investment allocation.

Investment risk tolerance is the ability to stomach the the impact of how much are we willing to accept when markets are falling. However, you may want to think about it in two ways.

The fi rst is how much are you willing to accept in annual performance reporting. The second is how much are you willing to accept in market corrections. The investing world tosses around risk

History (1948 – 2018) shows us that the markets experience about three 5% declines per year, one 10% decline about every year, one 15% decline roughly every four years, and a 20% decline approximately every seven years.1 The ability to manage emotions may infl uence behavior. For example, a hypothetical investment of $10,000 in the S&P 500 from January 1990 through December 2018, would have had approximately 5.62% annualized return. If an investor had made emotional decisions during the most volatile period, it could have reduced their annualized return to 2.01% and the best days of the period to -.33%. Six of the best 10 days occurred within two weeks of the worst 10 days. This shows how very diffi cult it is to time the markets. It is logically impossible but can feel plausible during emotional periods of volatility.

Do you need help understanding your risk aversion? We can help. Call us today at 602.923.9800 to schedule your complimentary consultation.

ups and downs of market moves (stocks and bonds) coupled with the ability to stay the course through your

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https://www.capitalgroup.com/individual/planning/market-fl uctuations/ past-market-declines.html investment period. You may apply risk tolerance in other The views expressed here refl ect the views of Renee A. Hanson as of areas of your fi nancial life, such as your emotional April 23, 2020. These views may change as market or other conditions comfort of having a mortgage or being home debt- change. Actual investments or investment decisions made by Ameriprise Financial and its affi liates, whether for its own account or on behalf of free. It is not unusual to see people apply different risk clients, will not necessarily refl ect the views expressed. This information is not intended to provide investment advice and does not account for tolerances to different buckets of money or assets. individual investor circumstances. We see that some people will treat inheritances with The initial consultation provides an overview of fi nancial planning concepts. You will not receive written analysis and/or recommendations. emotions of not wanting to lose a loved one’s legacy The hypothetical rate of return is for illustration purposes only and is not meant to represent the past or future returns of any specifi c investment or but be very comfortable taking more risk in 401(k) investment strategy, or to imply guaranteed earnings. allocations. Have you done this as well? Ameriprise Financial, Inc. and its affi liates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their

Putting the needs of clients first is the approach I believe in. I’ll work with you to find Each of us has a money story. Our money story is specifi c situation. Investment advisory products and services are made available through the right financial solutions to help you plan for your unique goals. And together, we’ll track your progress over time, adjusting your plan along the way to help get you where made of our life experiences around money growing up from our parents’ fi nances and our own experiences. Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2020 Ameriprise Financial, Inc. All rights reserved. you want to go.

Renee A. Hanson CFP®, CEP®, CDFA®, CFS®, ChFC®, APMA®

Phoenix, AZ 85054

Private Wealth Advisor

Affinity Wealth Advisory Group

A private wealth advisory practice of Ameriprise Financial

602.923.9800

7010 E. Chauncey Ln Ste 200 Services, Inc.

renee.a.hanson@ampf.com affinitywealthadvisor.com

Ameriprise Financial Services, Inc. Member FINRA and SIPC.