Rockwills Wealth Planner

Risk Planning

Life is risky business. That is what makes it interesting.

The objective of risk planning is to avoid, minimise, or obviate risks and if not possible or practicable to do so, to take measures to mitigate such risks. Without risk planning, it is like driving in the fog.

What is risk? It is something that may happen that has an adverse impact on a person, directly or indirectly. It may be financial, it may be non-financial. It may be controllable, it may not be within control. It may be major, it may be minor.

Below is what basic risk planning is about:

		1.	Make a list of risks that are considered probable or possible.
		2.	Identify those that are major - these would be those that are life-threatening or debilitating in effect, on a person and/or his loved ones.
		3.	Rank them in priority. The ones that have bigger impact would be ranked ahead of others.
		4.	Then work out what is to be done for each, ranging from deliberate inaction to being more conscious to taking precautions to taking counter-measures.

The idea is to do the above early enough so that major risk issues are addressed before they become problematic or the options become less and less. For example, the risk of not having enough to live on after retirement is a major risk that should be addressed through financial planning at a young age. The closer one gets to retirement, the less are the options available to secure the desired fund size.

Risk Planning FAQs:

1.	What are the common risks that we face in life?
A:	There are 3 major risk groups, namely: a. Premature Death; b. Loss of Wealth; and c. Loss of Earnings and/or Increase in Expense.

2.	How can I address such risks?
A:	Walk through our Wealth Garden to learn about the various solutions and techniques available to address different financial planning needs.

	Approaches: Risk Planning > Insurance Planning >>

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