Statistically speaking, nearly every bit of wealth creation comes from the ability to work. Whether it’s in the employ of someone, the invention or creation of something valuable, or an entrepreneurial enterprise, the proceeds we earn in excess of our inputs is our wealth. Whether you save and invest or buy real estate or put money back into your business, the impetus for building your financial capacity comes from earning an income.
So why is it in our financial planning we worry so much about stock market volatility, taxes, lawsuits, car accidents, and fires and spend very little time creating structural protections against an interruption to our income-earning potential?
The risks go beyond disability, death, and what insurance salesmen will want to talk to you about. Just one example? Check out this article from The Economist . It’s not pessimistic to think and plan and analyze, it’s just smart.