12 Retirement Risks

The 12 Retirement Risks are the risks everyone must combat when planning their retirement.

1. Longevity Risk- the risk of outliving sustainable income.

2. Entitlement Risk- the risk that government programs (SS and Medicare) will not provide sufficient income.

3. Excess Withdraw Risk- the risk of drawing down assets to quickly.

4. Market Risk- the risk of losing retirement assets temporarily or permanently because of market downturn or poor investment performance.

5. Lifestyle Risk- the risk there will not be sufficient income to maintain current or suspected standard of living.

6. Asset Allocation Risk- the risk of either investing too conservatively or too aggressively and not diversifying assets.

7. Sequence of Returns Risk- the risk of receiving low or negative returns in early years and diminishing retirement portfolio.

8. Inflation Risk- the risk that rising costs will undermine purchasing power of retirement assets.

9. Medical Expense Risk- the risk of paying for the growing cost of healthcare related services retirement.

10. Tax Risk- the risk that rising taxes or unforeseen taxes can have on portfolio or purchasing power.

11. Personal or Event Risk- the risk that the unexpected change in family circumstances may undermine retirement plans.

12. Incapacity Risk- the risk that as a result of deteriorating health, a retiree may not be able to execute sound judgment in managing retirement affairs.