Life is risky whether we like it or not. Most of us spend a lot of time worrying about risks and trying to counter them. But there is no such thing as a risk-free environment.
Some aspects of risk are outside our control.
Some we can manage and reduce.
But sometimes avoiding risk leads to poor outcomes.
For instance, most of us have taken a risk across the years when we’ve changed jobs, gone to a party where we don’t know anyone, or set off on a worldwide adventure. And these risks have paid off handsomely with a new satisfying career, meeting the love of your life or lifetime travel memories of great adventures. As we get older we often still take risks by joining different clubs, becoming volunteers or maybe becoming more politically active. And we reap rich rewards in return.
So it’s worth bearing these experiences in mind when we think about ways to view risk in retirement and retirement income.
