It’s never a good idea to focus solely on building wealth without identifying risks.
Wealth building isn’t just about growing your assets; you must first protect what you have with a comprehensive risk management strategy incorporated into your retirement plan.
When many individuals think of risk, a stock market crash comes to mind. If the stock market crashes, how much will you lose? You probably have no idea. It’s probably a lot more than you think and a lot more than you could withstand. But stock market volatility isn’t the only risk.
There are many other risks that can wreak havoc with your retirement plans, like unforeseen health care costs, loss of income from the loss of a spouse, improper Social Security withdrawals, inflation, lifetime tax burdens, investment losses, and much more.