Risk Management is often described as the practice of identifying and assessing potential risks and then developing strategies for controlling, reducing, or transferring the risk. Managing risk helps to mitigate potential financial losses that could affect the success of your financial plan.
One of the first steps is the establishment of a contingency fund that allows for an adequate cash reserve to provide liquidity in the event of an emergency. Having adequate cash reserves in the event of an emergency avoids the need to borrow money or sell assets that are intended for long-term investment.
Insurance is a method often used to handle the risks of liability claims, premature death, disability or the need for long-term care. Understanding the amount and types of insurance you require should be the result of sound analysis with your financial objectives in mind.
We help clients explore the most cost-effective solutions to help cover various risks. We are able to offer unbiased advice as Lighthouse does not sell or receive commissions on any insurance products. We will work with your insurance agent to ensure that the recommended products are appropriate for your needs. If you do not have an agent, we will assist you with locating one.