section 1 - The American College Online Learning Center

7. Practice good career management: Helps to cope with forced retirement because theclient may be less likely to be forced out by the employer and more marketable if theyare forced out.8. Institute informal or formal phased retirement: Helps to cope with forced retirementbecause the client maintains some income by working fewer hours.9. Negotiate golden handshakes and severance packages: Helps to cope with forcedretirement or the need to leave work because of health or caregiving responsibilitybecause the client negotiated a settlement or took a package that “softened the blow.”10. Use tax free investments: Helps to avoid tax risk because it obviates the risk of asudden change in federal or state income tax rates.11. Keep life insurance in force or use joint and survivor annuities: Helps to cope withloss-of-spouse risk because these insurance solutions help to protect the survivingspouse.12. Engage in proper estate planning: Helps to cope with loss-of-spouse risk becauseplans have been made for the contingency of the death of the first spouse.13. Carefully assess whether the client can afford to help others: Helps obviateunexpected financial responsibility risk because the retirement income plan has beenmapped out in such a way that the client is aware whether he/she can take on additionalfinancial responsibilities.14. Carefully select caregivers and financial advisors: Helps with financial elder abuserisk because time spent in screening caregivers and financial advisors can minimize therisk of fraud and embezzlement.Review the list of major risks we studied1. Longevity risk2. Excess withdrawal risk (also called portfolio failure risk)3. Inflation risk (also called purchasing power risk)4. Timing risk (also called point-in-time risk)5. Long-term care risk6. Frailty risk7. Heath care expense risk8. Investment risk9. Asset allocation risk10. Market risk11. Sequence of returns risk12. Reinvestment risk13. Liquidity risk14. Legacy risk15. Forced retirement risk16. Reemployment risk17. Public policy change risk18. Loss-of-spouse risk19. Unexpected financial responsibility risk20. Financial elder abuse risk5.40