Risk management
You have worked hard to accumulate your wealth, so it’s important to protect it from the various risks that are a part of life.
Risk management
You have worked hard to accumulate your wealth, so it’s important to protect it from the various risks that are a part of life.
1. Risk of lawsuit
Above and beyond purchasing liability insurance, you may be able to protect your surplus assets in several ways. These include giving them to a family member, transferring them to a trust, sheltering them within a creditor-protected life insurance policy or, if you own a business, within a holding company.
2. Risk of market downturns
Diversifying your investment assets is the main way to reduce this risk. In addition to the traditional diversification techniques (by asset class, geographic area and industry sector), some families with $1 million-plus investment portfolios diversify with alternative investments such as hedge funds or insurance policies.
3. Risk of income loss
Ensure that you have adequate disability, critical illness and long-term care insurance to protect you and your family against the risk of temporary or permanent income loss.