Know the risks and plan accordingly
Identifying the inherent risks in your pursuit of financial freedom is imperative. Sometimes missing a landmine can be more valuable than hitting the jackpot. Managing the risks that threaten your potential for success can help you in the pursuit of your financial goals.
At Elevánt Wealth, we can help you identify and prepare for the non-investment-related risks that can derail your life or financial well-being.
A Case Study: Risk Management
John and his beautiful wife Sara made every effort in their early years to make sound financial decisions. One of these financial efforts included purchasing life insurance on both John and Sara to help protect each other and their family in the event of a tragedy. As they progressed through their marriage, John jumped at the opportunity to start his own business in his field with a friend and long-time co-worker and their success in the business came quickly. As their business and family grew, John and Sara made sure to stay on top of their life insurance needs including increasing their coverage as needed as well as adding protection within John’s business partnership by drafting a buy/sell agreement funded by life insurance. This was designed to facilitate the buyout of either partner’s position in the company in the event of a premature death or disability. Unfortunately, that planning proved its value when John was killed suddenly in a work-related accident. As tragic as John’s death was, the financial concern was lifted for both the business in its need to buy Sara out of her inherited ownership, and Sara’s ability to move forward with the life John intended for her because John and Sara had considered and mitigated the risks within their financial life as it pertains to premature death.
This is a hypothetical case study that is intended to illustrate products and services available through LPL Financial. It does not necessarily represent the experience of other clients. The information and strategies presented are not appropriate for every investor. Individual clients should review with their Financial Advisor the terms, conditions, and risks involved with specific products and services.
Insurance products are offered through insurance companies with which LPL Financial has sales arrangements.
