Risky thinking - retaining or transferring financial risks

A quick look at risky financial decisions

Start your thinking here series

We all have risks in life and business to manage

But young families and businesses are often the most vulnerable in the early years.

They need additional protection and support until they have sufficient emergency savings and houses and sellable assets behind them.

Start your thinking about financial risks &when to use insurance to protect yourself from them?

We make quick small decisions all the time

The type of food we eat, organic or free range

The type of clothes we wear, natural fibres And who we’ll spend our time with on the

weekend

We understand that bigger decisions need bigger thinking ...

The type of school we plan to send our kids to usually involves a deeper conversation with people we trust and conversations about our health call for similar bigger thinking.

But the biggest decisions in life need our biggest thinking ...

That's when using a specialist financial advisor to help us think through the biggest financial decisions is particularly helpful.

They spend all their time, thinking about the biggest issues and building detailed and clear solutions for their clients

So why not benefit for putting a bigger thinker into that part of your life that deserves the best advice?

At the end of the day, you still make the decisions but you get the opportunity of putting their bigger thinking and focus, into your decision making process

A look at 3 real life financial decisions ...

You buy a new phone so the question is:

Do you buy the optional phone insurance in case you damage it or do you keep the financial risk yourself and accept that if you drop it, you pay for the new one?

Small decisionabout the level of financial

risk you’re happy to personally hold

You buy a new car so the question is:

Big financial decision

Do you insure it or do you keep the financial risk yourself and accept that if you accidently crash into the new Mercedes-Benz sports car showroom, without insurance, you’ll be financially liable to pay for the damages.

And when it comes to your

home the question is:

Bigger financial decision

Do you insure your house for fire and flood or do you keep the financial risk yourself and accept that if it burns down or floats away, you’ll be financially liable to pay for the damages.

So when should I

consider life insurance ?

Biggest financial decision

The answer really depends uponhow much spare cash you have to pay for

lossesif you damage your phone, crash your car

or burn your house down?

Life & Crisis & Income Protection insurance

These are a family's biggest decisions and need a specialist advisor to help you think through these bigger decisions just to make sure you haven’t missed something.

How much can you afford to retain yourself?

How much risk can you transfer to an insurance company to hold for you instead.

How would you answer these 6 quick questions?

1Do others depend upon you for financial support?

2Are you saving for a home or currently renting one?

3Are your current debts bigger than your current assets?

4Are you part of a young family or young business(or both)?

5Do you need to protect yourself or your family from your business debt?

6Do you want to be able to leave a legacy for someone you love, just in case something happens and you're not there not there?

So how much financial risk should I retain or transfer?

Regardless of how you come to your decision

remember ...Always always protect what you

cannot afford to lose

Contact me, Drew Brown if you would like help in making the biggest decisions for your family and small business better.

Disclaimer: And just so we’re all clear: No financial advice or financial product advice is provided in this document. The information in this document is general comment only and does not take into account the objectives, financial situation or needs of any particular person.