>

Managing Your Risk Identify As you can see there are many reasons why we need to protect ourselves and our families from various risks. The first step in managing your risk is to identify the areas in your financial plan that are at risk. Be as specific as possible to ensure proper protection of your home(s), your auto(s), and other assets. What is the value of your home? What are the items in your home worth? How much is your car worth? What assets do you need to protect from lawsuit? Also, don't forget about your income, other assets, your health, or your family's well-being if you pass away. Identify the specific risks and attach values to assets at risk. While you're working on this exercise, think about the impact a sudden loss or accident would have on you and your family's ability to achieve your financial goals. It's uncomfortable to contemplate negative happenings, but you and your family will enjoy peace of mind knowing that preparations were made to minimize difficult times.   Example Your goals are very important when identifying areas of risk. For example: An integral part of Monica's retirement plan, to retire at 62, was to contribute $400 per month to her 401(k) plan. If Monica became disabled and unable to work for a number of years, her ability to save money for retirement would be affected and she would likely have to delay her retirement. < PREVIOUS NEXT> #38599