My career as a Financial Life Planner centered on helping clients identify and address the major risks to their financial success. Risk comes in two basic forms: controllable and uncontrollable. For example, you can use insurance to mitigate certain risks, but other types of risk, like getting killed or injured in an accident, are not so easy to mitigate (except perhaps for the financial ramifications).
In Chapter X, while we don’t have to worry about losing our jobs, we do need to be mindful of other risks. We must consider the risks associated with habits that may impact our well-being. We need to think about the risks to our families when we fail to plan properly, including having an estate plan that aligns with our values.
Your assignment is to write down a list of risks and determine whether they are controllable or not. By doing so, you create peace of mind knowing you’ve covered all the appropriate bases. For example, is your asset allocation appropriate for your needs? How much stock market volatility can you handle before you get nervous?
What types of exercise are suitable for your level of health? Are you getting sufficient sleep to regenerate and feel your best?
Once you’ve created your risk list and categorized them as controllable or not, create an action list for how to address each risk. Let me know your observations.
