During my years as a financial life planner, I had countless discussions with clients about risk. For those who were averse to market risk while comfortably bearing other risks, it was necessary to adjust their expectations of returns accordingly.
In Chapter X, we need to assess risk through different lenses. Instead of focusing on market, credit, interest rate, and inflation risks, we need to look at the risks associated with living our best lives.
For example, consider our level of appropriate exercise (guess what, 15 minutes on the elliptical is not enough). We need to think about the foods we eat, the medications we take, the time we spend exercising our brains, and the risk associated with loneliness. It’s a lot.
I am not dismissing economic or financial risk, but I assume (or at least hope) you’ve got that covered with a qualified fee-only planner.
