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Retirement Risk Management

Investing can be a great way to grow your money, but it’s important to know how to manage your risk. This is particularly important in retirement.

In this video, Chris Merchant, CFP® will show you the A.R.T. of Risk Management and how you can use it to protect your investments.

Want to explore each option in more detail and get some tips for integrating it into your strategy? See the extended article below. 


The A.R.T of Risk Management:

Tips for Managing the Risks Associated with Retirement

By: Chris Merchant, CFP®


You’ve worked hard your entire life, and now it’s time to enjoy retirement. But with all the different risks associated with the financial aspects of retirement, how can you be sure you’re making the right decisions?

In this blog post, we’ll walk you through how Risk Management can be simplified to one of three choices: Avoiding, Retaining or Transferring.

I call this the A.R.T. of Risk Management.

The three options for managing risk when it comes to retirement planning: Avoid, Retain, or Transfer.


Avoiding Risk

One way to manage the risk associated with retirement planning is to avoid taking any risks at all. This can be done by putting your money in safe types of assets, such as government bonds or cash equivalents. These types of investments are typically less volatile than stocks or other types of investments, and they offer a lower potential return but also a lower potential for loss.


Retaining Risk

Another way to manage risk is to retain.   One example of retaining risk is by investing in a diversified portfolio. A well-diversified portfolio will include different types of investments with different levels of risk and return. This will help you maintain the potential for gain while also protecting you from large losses if one investment performs poorly.


Transferring Risk

The final way to manage risk is to transfer it by buying insurance policies or other products that will protect you from potential losses. For example, you can buy insurance that will cover you if the stock market crashes or you can purchase a long-term care policy that will help pay for nursing home care if you need it.


The Benefits of Each Option

Each option for managing risk comes with its own benefits and drawbacks. Here are a few things to consider when deciding which option is right for you:


  • Avoiding risk is the simplest way to manage risk, but it also comes with the least amount of potential return. If you’re looking for a safe investment that will protect your principal, then this may be the right choice for you. For the money you need to grow for the future, this strategy likely won’t grow.
  • Retaining risk can be a more aggressive approach, but it also offers the potential for higher returns. If you’re comfortable with taking on a little more risk to potentially earn more money, then this may be the right choice for you. For the money you need later in retirement, this could be an option to consider.
  • Transferring risk is a good option if you want to protect your assets from potential losses, but it can be expensive. Insurance policies can be a good way to transfer risk, but they can be costly, and they may not provide enough protection in the event of a major loss. This usually involves some type of an annuity that will guarantee an aspect of your retirement finances.

Tips and strategies for Avoiding, Retaining, or Transferring Risk

Each option for managing risk comes with its own benefits and drawbacks. Here are a few tips and strategies for avoiding, retaining, or transferring risk when it comes to retirement planning:

  1. When it comes to avoiding risk, it’s important to be aware of your options and make sure you’re investing in safe assets. But be mindful that playing it too safe may cause you to go broke “safely” because you never grew your wealth.
  2. When it comes to retaining risk, it’s important to diversify your portfolio so you’re not putting all your eggs in one basket. You’re taking the risk here but also have more reward potential. Make sure you understand the risk level in your portfolio.
  3. When it comes to transferring risk, it’s important to shop around and compare different insurance policies to find the best deal. Know the cost of transferring your risk. Make sure the insurance company is dependable. Be clear about what risk you’re transferring and what the cost is.

Final Thoughts

There is no single ‘right’ way to manage risk. The best approach for you will depend on your individual circumstances and goals. However, by understanding the risks involved and the different options available to you, you can make informed decisions about how to best protect yourself and your family.

If you are interested in learning more about how to avoid, retain or transfer risk when it comes to retirement planning, I invite you to enroll in our FREE retirement planning course called Retirement Basecamp™.

In this self-guided course, I’ll go into more detail about each of these options and provide you with tools to help you decide which one is right for you.

You can also check out our Guided Investing™ service here. 



For those of you new to our content, my name is Chris Merchant, CFP®. I am the founder of Hunt Country Wealth Management. My firm and I are dedicated to serving the distinguished needs of today’s modern retirees nationwide. We strive to help YOU experience the freedom and independence of a well-planned retirement.

If you’re interested in learning more about stock market investing, I invite you to purchase my book called On Investing Well – The Elements of Good Investing.  There, I discuss how to create a sound investment strategy and why investing principles are so important.

If you are close to retirement, I invite you to download our Free Retirement Guidebook™. In this resource, we help you understand the single most important shift you need to make before you retire.

Thanks for reading!



There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. This presentation is not intended to be used as specific investment advice as many of the concepts presented are for discussion only. This presentation is not an offer to purchase any specific security. Please consult a financial professional prior to engaging in any strategy to determine if it is appropriate given your personal situation.

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By: Chris Merchant, CFP® 

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