An essential ingredient of financial planning is managing risks. In this regard, think of a risk as a threat to your financial wellbeing. By managing the risk, you reduce this threat.
For example, one way you can manage investment risk is through diversifying your investment portfolio, so that if a particular company or sector goes through a downturn, the loss in your portfolio is minimized.
Many risks are controlled through insurance. In return for small periodic payments, the insurer agrees to absorb a portion of a potentially significant loss or expense.
While we can help you address most insurable risks, we generally focus on these financial risks whose impacts are often underestimated:
- Risk of a breadwinner becoming disabled, reducing or ending his/her earning power
- Risk of a breadwinner dying, ending an income stream upon which the household depends
- Risk of major long-term care expenses depleting assets intended to fund retirement
We believe managing risks like these is important to a client’s financial well-being, and therefore an important part of a comprehensive financial plan. Our Financial Advisors can help you understand your household’s risks, insurance options, and appropriate levels of coverage.