What is Risk?
Portfolio Volatility vs risk
Many investors confuse portfolio volatility and risk. These are two completely different topics. Knight Wealth Advisors listens to clients to learn what matters most to them. We realize in life there are things that we can control and things we cannot. The things we cannot control in life are the true risks to your financial plan. We’ve developed and refined a risk management process to help with the things we cannot control.
Our definition of true risk is simple. Dying too soon, living too long or getting sick in the process create most of the risk for individuals and families. A well-rounded financial plan should do more than protect people from portfolio volatility. Knight Wealth Advisors gather information about your hopes, goals and dreams, then we assess the potential risks to your plan. Next, we review the plans you have in place to ensure you’re adequately protected and provide guidance on any gaps we identify. Finally, we utilize our expertise and tools to create a plan to cover those gaps. The following is a list of some of the common tools we use to cover gaps:
Disability insurance provides income protection for when you are unable to work due to an accident or illness. According to research by the National Endowment for Financial Education 33% of American workers will suffer a short-term disability preventing them from working at least 90 days at some point during their career. The average disability claim lasts for 13 months. The research astonishingly indicates that mortgage foreclosures occur 16 times more often due to disability than due to death and yet only 40% of the workforce has some type of disability coverage. What will you do if you are the one in three Americans who suddenly cannot work due to accident or sudden illness? How will your mortgage get paid? How will you pay your day-to-day expenses?
As part of our risk management services, we review your existing policies to help ensure that you are adequately protected against this risk.
Long Term Care Insurance
The Urban Institute and U.S. Department of Health and Human Services estimates that just over 50% of Americans will require long-term care by the age of 65. The cost of that care is staggering – an average of $140,000 per year if paid out-of-pocket, and traditional health insurance does not cover long-term care. The report shows most individuals will require long-term care for less than two years, but about 14% will require care for more than five years. The financial impact of these expenses can be devastating. Long-term care insurance protects you from this risk by covering the expenses related to long-term care needs which protects your life savings.
These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.
Life insurance can be a difficult topic to talk about, but if you have dependents, discussing it is a must. Life insurance serves many purposes in your financial plan. It can be used to replace your income if you die too soon, helping to cover daily household expenses and outstanding debts like home mortgages, credit cards, and auto loans. It can be used to provide a legacy for loved ones; for example, future college expenses for grandchildren. It can even be used as a source of tax advantaged retirement income.
Data from Policygenius shows that approximately 57% of American adults have life insurance, however, it is reported that 32% of those individuals only have group coverage which is rarely enough. What is “enough”? The answer depends on your specific financial needs. We will review your current needs as well as any existing policies to ensure you are adequately covered.
Services We Provide
Stages of Financial Planning
Monday - Friday
8:00AM - 4:00PM
Securities offered through Raymond James Financial Services, Incl, Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Knight Wealth Advisors is not a registered broker/dealer and is independent of Raymond James Financial Services
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