CHAPTER SIX
RULE #2: Choose a Strategy That Addresses Your Risks
“Fortune favors the prepared mind.” ~ Louis Pasteur
I started this book with a simple sentence: I did it wrong. I’ll start this chapter with a simple promise: you don’t have to. If there’s one thing I’ve learned by being an actuary, it’s that the real risks are the ones you don’t know about, and therefore can’t plan for. Risks that you can identify, you can often eliminate, or at least proactively address. That’s what the rest of this book will teach you to do. It’s a little like boxing. The punches you see coming don’t knock you out. You can prepare for those. It’s the punch you didn’t see coming that puts you on the mat. In section one, we identified the punches coming your way: risks in how you save, the stock market and taxes. Now, I’m going to show you how to slip those punches like Muhammad Ali. First, a quick summary. Our first New Rule of Retirement Sav- ing was Know Your Risks. So far, we’ve identified three potential risks in your savings strategy: Structural risk: What vehicle are you using to save? What fea- tures and benefits does that vehicle have? Is your company helping you save? Can you count on the government for support in your retirement?
59
Made with FlippingBook - Online Brochure Maker