Massachusetts Risk Management

Protecting your family wealth and future is vital. Understanding financial risks is important, and being unprepared can be a significant mistake.

When most people think of risk management, they tend to focus on the level of market risk their retirement savings are subject to. After all, in addition to providing income in retirement, your assets typically still need to generate growth to help meet your long-term needs and maintain buying power due to inflation. This is typically best accomplished through participation in the stock market.

At Cutter Financial Group, however, our Risk Management process is also designed to help you protect your financial future from other unexpected expenses and life events. As part of the final stage of the retirement planning process, we’ll run your plan through several “what if” scenarios to determine what the effect would be on your plan and review potential solutions to help minimize these effects and maximize your probability of success.

Two common “what if” scenarios we run are: 

Death of a spouse: Do you know what would happen financially to your surviving spouse if you were to pass away prematurely or even at life expectancy? What portion of your pension will they retain? Did you realize that your surviving spouse will only retain the higher of your and their Social Security, but the lower benefit will be lost? 

Long-term care: One of the biggest concerns may not be outliving your income but instead outliving good health. What would happen to your spouse if you were to need long-term care for a period of time? With the median cost for a private room in a nursing home now at over $100,0001 and continuing to increase, how many years of care could you pay for before you run out of money, leaving your spouse potentially destitute? 

Through our risk management process, we will help you prepare for the unexpected and the inevitable, often employing various insurance-based strategies to better protect you and mitigate your exposure. 

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Let us get to know your situation, goals and needs – then together, we will help you build a sound retirement system.

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