Risk Management: Stress-Testing Your Retirement System

Our Services

Risk Management

When most people think of risk management, they focus on market risk, how exposed their retirement savings are to a downturn. That matters: in addition to providing income, your assets typically still need to generate growth to meet long-term needs and maintain buying power against inflation, which is typically best accomplished through participation in the stock market. At Great Bay Financial Group, however, our risk management process goes further.
As the final stage of building your retirement system, we help you prepare for unexpected expenses and life events that a portfolio alone may not be able to absorb.

Running Your Plan Through the "What Ifs"

We run your retirement system through several “what if” scenarios to determine what the effect would be on your plan, then review potential solutions to help minimize those effects and improve your probability of success.

What if a spouse passes away? Do you know what would happen financially to your surviving spouse if you passed away prematurely, or even at life expectancy? What portion of your pension would they retain? Many couples don’t realize that a surviving spouse keeps only the higher of the two Social Security benefits; the lower benefit is lost.

What if you need long-term care? One of the biggest retirement concerns may not be outliving your income, but outliving good health. What would happen to your spouse if you needed long-term care for an extended period?

Preparing for the Unexpected, and the Inevitable

Through our risk management process, we help you prepare for both, often employing various insurance-based strategies designed to better protect your retirement system and help mitigate your exposure. Because risk management is coordinated with your income, investment, and tax planning, the solutions fit your plan,not the other way around.

Frequently Asked Questions

How is this different from the RiskFirst® investment approach?

RiskFirst® addresses market risk inside your portfolio. This risk management process addresses life risks outside it, survivor income, long-term care, and other unexpected events. A complete retirement system needs both.

When in the process does risk management happen?

It's the final stage, once your income, investment, and tax plans are in place, we stress-test the whole system.

Do I have to buy insurance?

No. Scenario analysis comes first; insurance-based strategies are options we review only where a gap exists.

Wondering how your plan would hold up?

Request a no-obligation review. Meet with us virtually or at one of our offices in Falmouth, Duxbury, or Mansfield.