Risk Management

Stardate 05.31.2026

When it comes to risk management, I've had some wins and I've had some losses. I think of risk management as a tool we use to reach our goals. Avoid risk entirely and you may never achieve what you're capable of achieving. Take too much risk and you may end up with nothing. Is there a happy medium? Much of that depends on where you happen to be on your life's timeline.

One lesson I've learned is that not making a decision is often a decision in itself. Sometimes we convince ourselves we're playing it safe by standing still, when in reality we're accepting a different kind of risk. Every path carries uncertainty. The key is understanding which risks are worth taking and which ones are not.

The best way I can explain risk management is by sharing my own retirement strategy.

The math is fairly simple when it comes to Social Security. I'm at a stage of life where each year I delay retirement increases my future benefit by roughly 6% to 8%. The risk, of course, is that I could die before collecting enough benefits to make up for the years I delayed.

There is another variable to consider: my wife. If I die first, she would still receive the benefit of my delayed retirement through a larger monthly survivor benefit. This is where risk management enters the picture.

My decision is based on a belief that I can improve my odds of living longer through the daily choices I make regarding nutrition, exercise, meditation, and stress management. The longer I live, the safer the delayed-retirement decision becomes.

Of course, none of us knows exactly how much time we have. That's true whether we retire today, next year, or several years from now. At some point, we gather the best information available, make our choice, and move forward.

No matter where you find yourself on the risk-management scale, it is wise to carefully weigh your options. Every important decision involves some level of uncertainty. The goal is not to eliminate risk altogether, but to understand it and make the best decision you can with the information available.

My hope for you is that you live long and prosper.