A financial plan that doesn't take account of risks is unlikely to succeed. With time, virtually everyone will suffer the consequences of at least a few risks. Four steps are essential for protection.
- Identify and rank risks, focusing on the greatest threats to achieving your financial objectives. Include risks related to family, home, health, lifestyle, job, investments, other assets, even the economy.
- Develop strategies to address the most important risks. These strategies may call for insurance, investment diversification, asset re-allocation, or other actions.
- Implement your strategies, taking care that the specific actions, policies and instruments meet your needs and standards with the least cost and impediment.
- Monitor and evaluate your strategies regularly to be sure they still fit your needs.
Our Risk Protection Approach
Because risks—and financial objectives—vary for every person and every situation, we believe in the importance of personal interviews, allowing a review of particular situations and individual needs. The personal review should be supplemented by systematic analysis drawing on broad statistical data, quantitative techniques and industry experience—to assure development of the right strategies.