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Which Risk are You Willing to Take?

By LouAnn Schulfer, AWMA®, AIF®
Accredited Wealth Management AdvisorSM
Accredited Investment Fiduciary®

Maybe it’s our optimistic nature that leads many of us to believe we’ll never be the ones to suffer a distressing experience such as a house fire, unexpected medical incident, or health event resulting in the need for long term care.  The statistics may surprise you.

There is a 25% chance your household will have a reported home fire in an average lifetime(1). 24% of individuals reported an unexpected medical expense in the last year(2) .  Surprising to many, about 70% of people turning 65 can expect to use some form of long-term care in their lives, according to the U.S. Health and Human Services Department(3).  That may include a nursing home, assisted living or in-home care.

While many people may be able to pay for care for a shorter period of time out of their own pockets, a longer care need, such as one resulting from a life-long diagnosis like Alzheimers or Parkinsons diseases may devastate a financial portfolio.  In a survey of leading long-term care insurers, their largest claims exceeded $1 million, with five of the seven reporting their largest claim was for males.

There are all sorts of risks in our lives.  For risks with a higher probability like property catastrophes, medical expenses or long-term care costs, you can choose to contractually transfer financial risk to an insurance company in exchange for premiums paid and policy requirements met.   The question is, which risk are you willing to take?

  1. National Fire Protection Association (NFPA) A Few Facts at the Household Level, 2009
  2. Federal Reserve System, Report on the Economic Well-Being of US Households in 2014, May 2015

LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.