IN THIS SECTION:
Chapter 10 “Personal Risk Management: Insurance” introduces the idea of incorporating risk management into financial planning. This chapter focuses on planning for the unexpected. It progresses from the more obvious risks to property to less obvious risks, such as the possible inability to earn due to temporary ill health, permanent disability, or death.
Chapter 11 “Personal Risk Management: Retirement and Estate Planning” focuses on planning for the expected: retirement, loss of income from wages, and the subsequent distribution of assets after death. Retirement planning discusses ways to develop alternative sources of income from capital that can eventually substitute for wages. Estate planning also touches on the considerations and mechanics of distributing accumulated wealth.