Risk is what is left over after you think you’ve thought of everything. – Carl Richards

Getting to financial independence is job #1, but staying financially independent comes a close second.

To do so you’ll need to be aware of the risks that could empty your accounts. Being vigilant of these risks and having a plan to work through or avoid them could save you hundreds of thousands of dollars. Listen in to hear how you can save your financial independence.

Outline of This Episode

  • [1:22] 3 big risks to look out for in retirement
  • [5:01] Long-term care
  • [13:55] Getting scared out of the market
  • [20:12] Getting scammed

The 3 biggest risks in retirement

Each year we have our fall and spring client meetings. In the fall we work on taxes and in the spring we have various topics that we like to discuss with our clients. This year we discussed risk management.

As a team, we came up with the 3 biggest risks that we felt our clients faced in retirement: long-term care, getting scared out of the market, and getting scammed.

As a DIY retiree, you need to be looking out for yourself, this means periodically having conversations with your spouse or sitting down and checking in with your risk management strategies.

Long term care

Insurance is never perfect, but long-term care insurance is even less so. In addition to being expensive, the limitations and coverage aren’t clear-cut, you’ll have to apply and pass underwriting, and it has a tendency to double or even triple over time.

Planning for your long-term care is essential but there is a near 100% chance that what you plan for won’t happen. Yes, you’ll probably need some sort of long-term care in your lifetime, but chances are that it won’t be what you expected. The average long-term care stay is three years and can cost up to $15,000 per month. Listen in to hear a practical 6-figure solution that you may not have thought of to this looming problem.

Getting scared out of the market

Watching the news can be a scary thing. Watching the news during retirement in an election year is even more unnerving. Many people tend to jump out of the market to wait until the dust settles. But these terrible headlines don’t have to reflect on your portfolio.

When in doubt zoom out! The market works best when you sit back and leave your money in. Timing the market requires you to be right twice. Don’t get caught holding all your assets in cash.

Scams targeting the elderly

There are so many scams out there that it is hard to keep up with them all. IRS scams, Medicare scams, grandparent scams, Venmo scams, and more. Scammers are getting smarter and smarter and using tools like AI and money-moving apps to stay ahead of the game.

It’s important to be aware of the scams that are out there so that you can be vigilant and protect your assets. Don’t get caught in the scammers’ crosshairs.

Resources & People Mentioned

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