RISK MANAGEMENT

What is risk management?

• Looking both ways before crossing a 2 lane highway.

• Auto Insurance

• The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.

• The ability to plan for the future.

What are some risk management devices ?

• Saving money in an savings account.

• Auto, health, and life insurance.

• Applying for a passport.

• Co-signing for a loan.

If you are employed, what are some risk management products a job may offer?

• Workers compensation

• Health Insurance

• Disability Insurance

• Unemployment insurance

• All of the above

In case of a future emergency, what standard is widely recommended ?

• Make sure you have two credit cards.

• Apply for a loan from your bank or credit union.

• Have at least 6 months worth of work income saved in a emergency savings account.

• None of the above

What are the main two types of life insurance ?

• Whole life and half life.

• Term and Whole life.

• There is only one type of life insurance.

• Term and Partial life.

What is term life insurance.

• Term Life insurance last your whole entire life.

• Term Life insurance provides coverage for a fixed amount of time.

• Term life is the same as whole life insurance.

• Term life is another way of saying whole life.

What risk is minimized by titling your assets to a trust?

• Probate avoidance

• Reducing estate taxes

• Avoiding liens and lawsuit from creditors.

• Asset protection

• All of the above

What is a prenuptial agreement ?

• It is an agreement made by a couple before they marry concerning the ownership of their respective assets should the marriage fail.

• Is an agreement made by a couple after marriage.

• The agreement states that all assets should be split 50/50.

• A and C

What products are used for retirement planning ?

• IRA

• 401 K

• 403 B

• All of the above

How can you avoid running out of money during your retirement years ?

• Cash flow from real estate investments..

• Employment Pension plans and IRA.

• Social Security monthly payments

• All of the above.