There are some things in life that you can control, like getting fit by choosing to exercise. There are also some things you can’t control or predict, such as accidents and unexpected ill health. Risk planning is about making the most of what you can control to manage the impact of the things you can’t control.
If you have sufficient plans in place, you don’t have to be anxious about the things that are outside your control.
If you don’t protect yourself, your family and your business against the risk of unexpected events that can have a significant financial impact, they can interfere with your financial plan and your ability to meet your goals. For example, the benefits of saving diligently for retirement from an early age can be wiped out if you’re in an accident and are unable to work, but didn’t have any plans in place to replace your income. You may therefore end up having to use your retirement savings to cover everyday living costs.
Risk planning therefore forms an integral part of our advice process, and can help ensure that: