Obstacles are everywhere. We face them from the moment we open our eyes until the moment we close them at the end of the day. Some are so small we barely notice them. Others are so large they permanently change us.

The road to business success is fraught with obstacles. And, every person’s obstacles are unique to them. Some face obstacles related to their age, race, or sex. Others from their upbringing, education, or social status. But by far the most dangerous obstacles are the kind we can’t see – the ones that exist only in our mind from imaginary limits we place on ourselves.

To a great degree, the success people achieve in business is determined by how effectively they overcome obstacles.

Your Biggest Enemy

The Wright brothers are credited with the first controlled, manned, powered flight on December 17th, 1903. Although they failed hundreds of times before they succeeded, they never gave up on their dream. Had they done so, invention of the modern aircraft would have been attributed to someone else.

This example well demonstrates the power that exists in the human mind. At that time, no one had ever seen such a flight. It would have been easy for the brothers to conclude that their goal was unachievable. Today, we now know it wasn’t. For the Wright brothers, believing was the first step.

All too often though, our minds convince us that something is impossible long before we give it our best effort. It’s like we create a mental surrender that says, “I can’t do this. I’ll never make it. It’s not possible.” Those who let themselves think this way are sure to fail because they stop trying to succeed. How can you conquer such tendencies?

•    Know Your Limits
There is a difference between obstacles and limits. Obstacles can be overcome, whereas limits cannot. For example, a blind person cannot drive a car. Real limits are few – obstacles are many.  Knowing your limits will keep you from striving for the unachievable and ending up disappointed. Once you understand your limits, everything outside of them becomes a possibility.

•    Ignore doubt
At 21, while interviewing for an $8.00 per hour position, I told the interviewer I expected to be earning 6 figures within 5 years and be semi-retired by 35. “That’s a little farfetched,” he said with a chuckle. It may have seemed farfetched to him, but where he saw obstacles I saw opportunity. I knew the obstacles were there. I simply chose to ignore them.

•    Have a plan
A good plan is the secret weapon for combating mental obstacles. When you have a plan and are determined to stick to it, it doesn’t matter what you are feeling at a given time because you can simply ‘proceed as planned’. Conversely, if you are plagued with negative thoughts and a lack direction, it’s easy to become complacent.

•    Visualize your goals
Once you’ve spent so much time thinking about a goal that you can see it, touch it, taste it, and smell it with your mind’s eye, you won’t easily give up on it. The desire to achieve it will give you the fortitude to overcome even the most daunting of obstacles.

•    Embrace positivity
Stay away from people, places, and things that bring you down. Immerse yourself in as many upbuilding activities as possible. Choose positive reading material and positive friends. Listen to the prodding of fellow optimists and ignore the criticism of pessimists.

•    Understand fear
Fear creates imaginary obstacles. Fear can prevent us from introducing ourselves to people (fear of rejection), starting profitable business ventures (fear of failure), and experiencing wonderful things (fear of the unknown). The key to overcoming such fears is to:

1.    Recognize them in yourself
2.    Identify their root
3.    Make a plan to deal with them

The next time you are facing an obstacle, ask yourself if fear might be the only thing holding you back.

The Choice is Yours

Most people choose not to exert the energy it requires to overcome obstacles. For them, it’s easier to blame obstacles for their lack of personal accomplishment. On the other hand, there are those who forge desire, determination, and hard work into a sledgehammer that demolishes every obstacle in their path.

Which type of person are you?

“Destiny is not a matter of chance; it is a matter of choice. It is not a thing to be waited for; it is a thing to be achieved.”  -Jeremy Kitson

The quote above was featured in a weekly leadership journal I subscribe to, and the truthfulness of it seems particularly poignant.

I’m always staggered when I meet people who believe their life is predestined. To me, the very concept that every choice we make has already been determined in advance is ludicrous. If that were true, it wouldn’t matter if we wore our seatbelt, went to college, saved for retirement, or anything else. If we truly are predestined, we might as well sit around and wait for our “time” to come.

Thankfully, just the opposite is true. With the exception of life’s random uncertainties, we are in control of our future. We make decisions every day that can change our lives dramatically – for better or worse.

Why do I bring this up? Because humans have the habit of trying to convince others that they are not in control of their own future; that they must conform to a certain mold. Sometimes the mold is race or sex. Sometimes it is a school you must attend or an organization you must belong to. Or, sometimes it is the generation you are born into – which brings me to my main rant: The media’s relentless speculation about the attitude and work habits of Generation Y. Left to their own devices, they would have an entire generation painted as sloppy, self-absorbed, unprofessional, slackers. Is that how you want to be perceived?

Because such misconceptions exist, the burden rests on you to rise above the preconceived notions of others and present yourself as a hard working, respectable, and dedicated young professional. It starts with the first impression you create and continues through every interaction until you establish your character.

Consider two choices:

Every once in a while you can take a good, hard look at yourself and ask: What does my appearance say about the kind of person I am? Am I reliable? What is my reputation with my coworkers? If I were my boss, would I be impressed with me? Based on the results of your self-analysis, you can then make adjustments accordingly.

Or, you can do nothing and continue as you are. If you are the type of person who doesn’t care about what others think, that’s your choice; but don’t fool yourself into thinking that it won’t affect your career.

Whichever you choose, you’re the one who ultimately reaps the rewards or suffers the damage. As our quote above so aptly put it, that’s the beauty of choice!

Cartoon Source: Journal De Quebec / Mardi 22 / Janvier 2008

I know I said I wouldn’t be posting for a while, but I figured I should take a minute to share an interesting study that was recently published by Price Waterhouse Coopers. It addresses how technology, the green revolution, and generation y is reshaping the workplace. With all the propaganda and hype out there, I found this to be refreshingly unbiased and informative. Enjoy!

http://www.pwc.co.uk/pdf/managing_tomorrows.pdf

I have good news and bad news. The good news is that I have been contracted to write a book about business success for the Penguin Group. The bad news is that I will not be posting to this blog for about six months while I complete the project.

As I’m sure you can appreciate, this is a major accomplishment for me, and I need to give it my full attention. I apologize to my faithful readers, but assure you that I will be back in mid March. I will try to keep you abreast of any significant developments in the meantime.

Thank you for your support!

Regards,

Robert Sofia

There’s only one way to describe what’s been going on with the stock market in recent weeks – WOW! Historical precedents are being shattered almost every day.

This blog is supposed to be a career development resource, but in light of recent events, I feel obligated to share my insights with you. For those of you that haven’t had a chance to follow what’s been going on, here’s a little commentary on last week:

High volatility continued through the week, but when the closing bell rang on Friday, investors were smiling as the Dow Jones Industrial Average recorded its biggest one-week gain in more than five years, according to The Wall Street Journal.

On Monday of last week, the Dow rose a stunning 936 points, but on Wednesday, it took a 733-point dive. And, for good measure, it popped higher by 401 points on Thursday. Now that’s volatility! These dramatic daily swings suggest that investors still lack strong conviction on which direction the market is heading.

The government intervention in the financial markets continued last week and investors were left trying to figure out what it all means. At one end of the spectrum, you have people who are thrilled that the government is stepping in and preventing more firms from going under. At the other end, you have free-market champions who are furious that the government is propping up weak firms that otherwise might fail because of their bad decision-making. If nothing else, these historic times are keeping bloggers and opinion page writers like me busy arguing our particular point of view.

One surprising piece of news last week was the opinion page article penned by super investor Warren Buffett that was published in the New York Times. The normally tight-lipped investor went on the record as saying he was buying stocks last week for his personal portfolio, according to CNBC. Buffett also said, “Fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups as they always have. But, most major companies will be setting new profit records five, 10, and 20 years from now.”

Buffett says one rule dictates his buying: “Be fearful when others are greedy, and be greedy when others are fearful.” Right now, with these tremendous daily swings, there appears to be plenty of fear. And, if Buffett is right, then the prices we see today might look pretty attractive five or more years from now. Considering the fact that Warren Buffett is a highly esteemed, billionaire investor, it might be prudent to listen to what he has to say.  And for those of you who are young and still have plenty of time to leave your money in the market, his advice is especially timely.

I’m not trying to give you investment advice – just a little food for thought. Until next week…

This year’s election is drawing more attention than any presidential race in recent memory. And no wonder. There’s no shortage of issues. Unemployment. Health care. Inflation. The economy (of course) and more.

While it may seem that the world is coming to an end, it’s wise to remember that our past has never been short of issues. Finances. Health care. War. Peace. They have always been a part of the political and economic landscape. And while the future is hard to predict, perhaps there is something we can learn from the past.

Over time, the market has shown amazing resilience to adverse events, regardless of which party is in office.

Let’s go back 75 years when, by comparison, today’s economic concerns may seem almost trivial.

The country was still suffering through The Great Depression in 1932, and a beleaguered nation hung on every word of FDR’s first inaugural address. Remember what he said? “… the only thing we have to fear is fear itself.”

Desperate as those days were, $100 invested after that historic speech would have grown to some $442,000 (average annual return 11.90%) by December 31, 2007.1

Granted, even $100 was hard to come by back then. But the lesson is real.

Consider another example:

• Oil up 60%
• Personal savings under 1%
• Equity markets are stumbling
• Fear of recession and bear market everywhere

Sound like today’s headlines? Well, they’re not. They’re from the pages of BusinessWeek magazine nearly 30 years ago.

Unemployment was high (5.85%). Inflation even higher (11.22%). And the cover story that week—“The Death of Equities”—predicted that investment opportunities in that asset class were all but over.

“The U.S. economy probably has to regard the death of equities as a near permanent condition,” the magazine said. Imagine what things would be like today if everyone had bought into that philosophy.

Ronald Reagan may have been one of the few people who could use the terms “Recession” and “Depression” in the same breath and make you smile. Generally, they’re no laughing matter. And even many economists disagree on when they begin and end. But consider these facts based on the past 10 recessions since WWII:

•On average, recessions only last about 10 months.

•Within five months, even though the recession is still going on, the financial markets are already starting to turn around.

•And those rebounds have been impressive. Within the first 12 months from the recession low, the markets have returned 39% gains.

If you have any doubt about downturns rebounding, let me ask you to consider the Crash of 1987. On Oct. 19, 1987, the market plummeted 22%. In a single day!

What you probably don’t remember, however, is that by the end of the year, equities ended up in the black. Granted, the market was only up a scant 2%. But 1987 ended in positive territory, not negative.

More importantly, investors who didn’t abandon equities during those dark days were handsomely rewarded. A modest $10,000 invested on Oct. 16, 1987, would be worth $80,818 (average annual return 10.89%) by December 31, 2007.1

These days though, you might wonder if you’re better off today than you were… just yesterday. The reason has a lot to do with inflation.

For the past 20 years, inflation has been a relatively benign 3.07%. But over the past year, annualized inflation has risen to 4.08%. Not terrible, but of concern.

Why does everything seem to feel like prices are soaring higher? Because many of the things we buy everyday are rising at a much faster pace.

For example:
•Heating oil is up over 64%
•Gas (no surprise) is up 20%
•A dozen eggs are up 18%
•Loaf of bread…up 15%
•An airline ticket is up 14%
•And overall household energy is up over 10% from a year ago.

Bad as all that is, we’ve faced worse.

Take gasoline. Of course, $4 a gallon of regular is not good. But consider 1979. If your license plate ended in an odd number back then, on an “even” day you couldn’t buy a gallon of gas at any price.

Yet, had you invested $10,000 on July 16, 1979, your investment would have grown to $320,000 (average annual return 13.07%) by December 31, 2007.2  Why?

Because over the long term, our economy has been strong.

So when you think about your long-term goals, perhaps you shouldn’t ask yourself if we are ever going to come out of this; but what you can do to profit from it. If you are a  young investor who is twenty years or more away from retirement, you have a once in a  lifetime opportunity to purchase securities at a deep discount. Are you maximizing your 401(k)? If not, you’re probably making a big mistake.

As you’ve seen, we’ve faced adversity before. And over time, regardless of who occupied the White House, investors with a long-term approach have done well.

History suggests that over time, investors are rewarded for their resolve.

1 Ned Davis Research, 2008
2 Morningstar Direct, 2008

Rather than steal someone elses thunder, I’ll let Greg Rollett of the Creating Gen-Y Magic Blog, tell you what they’re all about:

Creating Gen-Y Magic is a site devoted to those young members of our society that are making a difference in their organization, to their customers, clients and friends and in starting their own businesses.

The idea was simple, in Lee Cockerell’s new book, Creating Magic, Lee shares insights and leadership strategies from a life at Disney. Upon reading his book, we realized that extraordinary things were happening everyday and at the center of this was Gen-Y, the Millennials or the iPod Generation. Whatever we are called by society, we are making change and a difference.

From 20-something Mark Zuckerberg at Facebook, to the Brazen Careerist group of Gen-Y Career Bloggers to those making a social change like Rock For Hunger and Cool People Care and the countless others that remain nameless and continue to defy leadership and societal odds to be the best they can.

Throughout the next few weeks as we get the concept fully ironed out, we will be asking Gen-Y leaders to guest post on how they have “Created Magic” at their organization. Creating Magic can be described as:

* Going above the textbook customer service experience
* Starting your own business
* Climbing the corporate ladder quicker than status quo
* Making an impact at your organization
* Examples of showing that everyone matters
* Caring in times of need
* Helping those in need
* Leading in times of crisis and times and economic downfall
* Any other instance of leadership from a Gen-Y professional

If you have a story that you would like to share, please send an email to rollettmarketing@gmail.com and we will be happy to listen.

As an added bonus, Lee will be listening in and giving pointers, advice and stories of his own to help you shape your own leadership plan. You don’t get your own window on Disney’s Main Street for nothing!

If you are interested in reading more about what they are doing over at Gen-Y Magic, you can visit the blog at creatinggenymagic.com.

I recently had the privelege of being interviewed on their website along with some other well know Gen-Y leaders. You can read the interview here.

The current financial crisis should serve as a timely reminder that it is wise to exercise responsible personal finance. With the constant barrage of messages targeting our generation with the admonition to buy, buy, buy, it’s all too easy to get sucked into a quagmire of debt and despair.

Here are a few basic principles that we can all benefit from:

• Live below your means. Try to save at least 10% of your annual income. Before you know it, you’ll have a nice cushion that will help soften the blow when the unexpected happens.

• Make a budget and stick to it. Without a budget you’re likely to spend too much on unnecessary items. A budget helps you see clearly how much money you have and where your money is going.

• Use credit wisely. Just because credit is available to you, doesn’t mean you should use it. Credit cards are especially dangerous and should only be used for emergencies or purchases that can be paid off within a couple months.

• Invest in the Stock Market at regular intervals. No one can predict whether the market will go up or down tomorrow, let alone next year. By investing regularly over time, you can help hedge against large market fluctuations and build a sizable nest egg for retirement. A 401(k) is a great place to start. If your employer offers one, utilize it!

• Don’t stress about what you can’t control. Just as you can’t control if there will be a thunderstorm tomorrow, you can’t control whether the government will approve a $700 billion bailout package. What we can do, is be proactive in preparing ourselves for whatever may occur.

• Focus on what’s most important in life. Spending time doing things you enjoy, with your family, your friends, and helping others, can help you maintain your sanity in a crazy world.

The companies and individuals that are embroiled in the current financial crisis likely forgot to apply basic personal finance and life principles. The result is that some of them are paying a heavy price. Make it your resolve not to fall into the same trap.

Many Millennials have expressed concern about the recent turmoil surrounding financial markets. As a Generation Y’er and a Financial Advisor, I thought it would be appropriate to give the subject some consideration.

We sent the following explanation to all the clients of our firm, and I hope it will help put things in context for you as well.
 
The Past:
In order to understand how we can get out of this mess, it’s necessary to figure out how we got into it. The late 1990s is a good place to start.
 
You might not remember the “good ol’ days,” but the internet was changing the world, technology stocks were soaring, and the economy was humming along. It was a great time to be in the stock market as the S&P 500 index rose 220% for the five years ending December 31, 1999, according to data from Yahoo! Finance. That’s an average annualized return of 26% excluding reinvested dividends, which is simply phenomenal.
 
Of course, the good times didn’t last. The bubble popped and the S&P 500 declined by 49% between March 2000 and October 2002, according to data from Bespoke Investment Group. In order to limit the collateral damage to the economy from this steep decline, the Federal Reserve, under former chairman Alan Greenspan, embarked on a major interest rate cutting campaign to try and stimulate the economy. The Fed took the federal funds rate from 6.5% in May 2000 all the way down to 1% by June 2003, according to data from the Federal Reserve Bank of New York.
 
This precipitous decline in interest rates set the stage for the next bubble – real estate.
 
With interest rates super low and the stock market in a funk, investors turned their attention to the previously moribund real estate market. As the economy gradually improved, people started to buy homes again in a big way. And banks, mortgage companies, and Wall Street wizards were more than happy to come up with new fangled ways of getting Americans into the home of their dreams with little to no money down.
 
Wall Street investment banks were thrilled with this new opportunity in real estate because they weren’t making much money on their traditional business of investment banking and buying and selling securities. By coming up with new ways to package, slice, and dice mortgage securities, Wall Street firms made a boatload of money. Unfortunately, many of these new securities, which provided capital to finance the real estate boom, were highly financed themselves. Effectively, the actual equity that underpinned some of these mortgages was negligible.
 
When the real estate bubble became unsustainable, just like the earlier technology bubble, it all came crashing down.
 
With very little equity supporting billions in outstanding mortgages, a slight decline in the value of the real estate caused a ripple effect of delinquencies and defaults. As the defaults spread, it began to feed on itself like a California wildfire inhaling dry timber. Eventually, fear took over as nobody knew when the vicious cycle would be broken. Enter last week.
 
Investors had weathered blowups from Countrywide, Bear Stearns, Fannie Mae, Freddie Mac, and now, they were facing major problems with Lehman Brothers, AIG, and Merrill Lynch. By week’s end, Lehman had been forced into bankruptcy, AIG had been effectively nationalized by the government, and Merrill Lynch had taken refuge in the arms of Bank of America. This tumultuous turn of events propelled the government to act swiftly and decisively.
 
The Present:
The situation is fluid and changes are happening with lightning speed. Over the weekend, the Bush Administration sent to Congress a $700 billion proposal that would give the Treasury broad authority to purchase distressed assets from U.S. financial institutions in an effort to stem the crisis. The proposal would also raise the nation’s debt ceiling to $11.315 trillion from its current $10.615 trillion limit, according to Bloomberg. To put $700 billion in perspective, that translates into an average bill of $6,500 per U.S. family, according to a report from MarketWatch. Now, it’s possible that the Treasury will turn around and sell the assets and recoup some or all of that $700 billion, but that will not be known for perhaps years.
 
We also don’t know how hard of a bargain the government will drive when it tries to buy these distressed assets. If it tries to buy the assets at a very low price, then the financial institutions may have to take more write-downs and raise more capital, which could keep this vicious cycle spiraling down. Conversely, if it buys the assets at a high price, then the financial institutions benefit at the expense of the taxpayers who are on the hook for any future losses.
 
In a surprising twist, investment banks Goldman Sachs and Morgan Stanley announced late Sunday night that they will convert their businesses into traditional bank holding companies, according to The Wall Street Journal. This will subject the companies to new regulatory oversight and possibly significantly reduce their future profit opportunities. It may also put the companies in a better position to be acquired, to merge, or to acquire a smaller bank with insured deposits.
 
In other news last week, the Treasury announced that it is extending bank deposit-type insurance to money market funds. The news of a money market fund that “broke the buck” prompted the government to implement this safety net as a way to limit further damage in the $3.3 trillion money market industry, according to Bloomberg. Also, on Friday, the Securities and Exchange Commission implemented a ban on short-selling 799 companies through October 2. This may ease some of the pressure on these companies and shield them from “bear raids” that could depress their stock price.
 
The changes announced by the government late last week helped spark a huge rally in stocks on Thursday and Friday. Nobody knows whether this is just a temporary reprieve or the beginning of a new period of stability. What we can say with some confidence is the government is all over this situation and they are trying to do all they can to prevent a replay of the 1930s.
 
The Future:
As the old saying goes, “Forecasting is the art of saying what will happen, and then explaining why it didn’t.” At the risk of having to explain myself later, I’ll offer some comments about what the future may hold.
 
First, capitalism as we know it may have changed dramatically. The concept of letting free markets adjust and self-correct with minimal government intervention is likely gone. The government’s actions over the past few months indicate that there are limits to laissez faire. We may see more government regulation and that may mean lower long-term returns from securities because the regulations could remove some of the risks from investing.
 
Second, when a financial calamity is knocking on the door, a small number of people may assume tremendous power to make decisions that put hundreds of billions of taxpayer dollars at risk. Right now, Treasury Secretary Hank Paulson is arguably the most powerful person in America. He and his coterie of trusted advisors are massively reshaping our financial system with bullet train speed and little oversight. When the history books are written, Paulson may go down as the greatest Treasury secretary of all time or we may be throwing darts at his picture. Time will tell.
 
Third, we live in a global society that is highly connected through commerce and instantaneous communication. What happens in the U.S. is no longer a U.S. issue and vice versa. As a global society, we may all sink or swim together – so we all better get along. The financial crisis we’re experiencing is a great example. It’s not just isolated to the U.S. It has global ramifications.
 
In Closing:
We need to keep in mind that it took us years to get into this mess and it may take us years to get out of it. The government’s unprecedented action last week may have stopped the bleeding, but that doesn’t necessarily mean the patient is well. We still have a glut of homes on the market, a relatively soft economy, and a host of other headwinds. With that said, new opportunities may arise and smart investors are always on the lookout for them.

Securities and advisory services offered through SII Investments, Inc., member FINRA, SIPC and a registered investment advisor. Fross & Fross Financial, LLC and SII Investments are separate and unrelated companies

All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Have you ever noticed how some people have the ability to command attention when they speak? Would you like to be that kind of person? The following tips will help you learn to communicate with power and increase the likelihood that others will perceive you as a leader.

1) Think before you speak. Most people hurl their two cents into a conversation at the very moment a neurological pathway fires it. Leaders, on the other hand, collect their thoughts into meaningful expressions and share them at the right time. Needless filler phrases and wimpy opinions can demolish your credibility and cause others to tune you out. By waiting until you have something truly meaningful to say before you speak, you will come to have a reputation as someone worth listening to.

2) Listen first. When you listen to others, they will be more likely to listen to you in turn. Active listening also gives you insight into the thoughts of those you are speaking to and will allow you to tailor your comments to what is important to your audience. Apply steps one and two together, and you will come to be known as someone who says meaningful things, deserves to be listened to, and talks about things that are important to others. Sounds like a winning combination!

3) Eliminate verbal fluff. Filling your expressions with useless interjections like “uh”, “emm”, “like”, “y’know”, and so on, makes you seem uncertain. The words of those who seem uncertain are usually discounted. If you feel like you are about to use a filler word, try taking a breath and pausing instead. A brief silence to gather your thoughts is one hundred times better than mumbling an, “uuuuuh… hmmmmm”. Gathering your thoughts before you speak will also help in this regard.

4) Watch your pitch, pace, and tone. You’ve probably heard it said that, “it’s not what you say; it’s how you say it”. When it comes to communicating with power, nothing could be truer. If you constantly speak in a fast and elevated tone, you’ll grate on people. If you speak painfully slow and in a monotone, you’ll put your listeners to sleep. Too quiet and they won’t hear; too loud and you’ll appear domineering. Focus on speaking with adequate volume, at a normal pace, and with a confident tone. In so doing, you will find that others enjoy listening to you. If this is an area that is naturally difficult for you, you might want to try joining a local speaking organization or studying a book that focuses on public speaking skills. With effort and practice, the art of speaking with proper inflection and volume can be mastered.

5) Talk Tough. Say what you mean and mean what you say! If you constantly hedge your comments with fragile opinions and qualifiers, you can be certain that others will perceive you as weak. When asked your opinion, avoid expressions like, “I feel” and, “I like it because”. Instead, focus on solid, specific observations that are based on fact. If you don’t know the right answer, fight your urge to wager a guess.  Remember, you’re a professional – not a politician!

Success and the ability to communicate are synonymous. When you are able to effectively communicate your ideas, the likelihood of reaching your objectives increases. By practicing the tips above, you will be well on your way to communicating as an effective leader – to communicating with power!