LIFETIME:
Protect my assets and/or my income
AFTER DEATH:
"I don't want my son's (daughter's) next husband (wife) receiving a dime of what I've built!"


RISK MANAGEMENT

1. Identify potential perils

2. Determine the frequency and severity of those perils

3. Evaluate what to retain, insure, hedge, and transfer

4. Recommend

5. Implement

6. Periodically monitor



 
Risk Management
High
Frequency
Low
Frequency
High
Severity

try to INSURE, if affordable otherwise HEDGE and/or TRANSFER

tend to INSURE
Low
Severity
tend to INSURE
tend to RETAIN
 


TRANSFERRING RISK is the process of:

  • Building castle walls around assets and income
  • Digging a moat around the castle walls
  • Fill the moat with rabid alligators
  • Erect a barbed wire fence around the moat
  • Electrify the fence

  • but then, DON'T LEAVE THE DRAW-BRIDGE DOWN !!






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© Copyright 2011 Herbert K. Daroff, J.D., CFP®
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