Attitudinal risks in the planning process

Perhaps a bigger risk than an interruption of income, or a physical destruction of an asset, or a lawsuit, is the risk that our heads aren’t squared on straight as we go through a planning process about our wealth.  I’ve been reflecting on my role in that process and it dawns on me that we each bring our own biggest risk to the planning table – it’s us!

As I think of the cases where I worry about a family’s risk to future events, it’s rarely because I predict frequent accidents, or thefts, or injuries.  Instead, I realize now that what gnaws at me is the feeling that their attitudes toward risk and making an investment in risk management is itself their biggest exposure.

With perhaps greater thought I will categorize these better, but here are some attitudes I frequently see that I think are detrimental to sound wealth risk management planning:

Apathy – It won’t happen to me

Ignorance – My contracts protect me from lawsuits / I’m already covered for that

Disclosure – If I can keep it a secret I won’t have to deal with it

Gaming – I’ll just tell ½ of the story  so I can get what I want at a lower price

Inconsistent Expectations – I want high deductibles but all my claims paid / I want the best coverage and service but also the lowest price

Under-involvement – I’ll just do what you guys say I should do

Believing the Hype – The salesman told me ____

Skepticism – You don’t need to know that in order to get me what I need

3rd-party Influence – My buddy told me ___ / I saw on TV ___

Photo: Rachael McGraw, Faxafoss, Iceland


Published by