What Is The #1 Financial Risk During Retirement And Why Is It A Risk Multiplier?
There are a multitude of financial risks to be considered during retirement, but there’s one risk that is known as a risk multiplier. Before I tell you which risk this is, lets first define what a risk multiplier is. A risk multiplier is risk component that can enhance or multiple the effect of other underlying risks. As a financial advisor, it’s my job to sit down with clients and identify key risks that could disrupt or even derail their long-term retirement plans and develop a plan to address them.
Here is a list of the most common risks many people face during retirement:
- Market Volatility
- Public Policy Changes
- Interest Rates
- Credit Risk
- Liquidity Risk
- Concentration Risk
- Sequence of Returns
- Health Care Needs and Costs
- Withdrawal Rate Risk
So which risk is the risk multiplier? LONGEVITY RISK
What is a way to neutralize this risk? Watch the video below
If you would like to have a conversation about longevity risk or any other types of risks that could disrupt your retirement plans, please contact us.