Do you gamble with your retirement future? I’m not referring to merely ignoring or not having a plan for retirement. I’m talking about acts of commission or omission that place your retirement plan at serious risk. A recent news article about a 66 year old hopeful retiree reminded me of this.
< There are several ways to gamble with your retirement future. Speculating in high risk assets is one. Another is to fail to take reasonable steps to manage and control foreseeable risks. In the case of this sad story, the retirement planning failure almost made me scream: no homeowners insurance.
This is a guy who thought he had it all planned out – a home with acreage and livestock to provide the owner food and income. The property was paid for. He was all set.
BUT HE DIDN’T INSURE HIS PROPERTY!
You can guess what happened. While he was away due to a forced evacuation, another California brush fire destroyed his home and vehicles and killed most of his animals.
I don’t live in California but I read the news enough to know that brush fires are quite common and devastating in recent years.
Why wouldn’t he have insurance? Did he try to save money to buy more goats? It makes no sense. This is life-planning 101.
You must insure against known risks – casualty loss, liability (car insurance, umbrella insurance), and poor health (disability and long term care, for example).
Anything short of that is gambling your retirement future.
Here is the full article. Read it and shake your head in disbelief. Feel sorry for the man. Then consider whether you have done a good job of risk management for your retirement.