The Social Security Mistake Risk-Averse Folks Make

Are you a risk-averse investor? Watch out, because the way you're wired might steer you into claiming Social Security early, rather than "risking it" to wait for a bigger payout later. Your desire for a sure thing could cost you a LOT of money.

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It has become standard practice that risk tolerance questionnaires are completed for almost every client during a financial planning or investment planning process. Risk tolerance questionnaires serve two purposes:

  1. Bluntly speaking, it is a “COA” instrument — which stands for a “cover our…” (You can fill in the blank.)
  2. Partially driving No. 1 is the belief that a client’s plan should be built around his or her unique situation and risk tolerance level.

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Jamie P. Hopkins, Esq., CFP, RICP
Director of Retirement Research, Carson Wealth

Jamie Hopkins is a well-recognized writer, speaker and thought leader in the area of retirement income planning. He serves as Director of Retirement Research at Carson Group and is a finance professor of practice at Creighton University's Heider College of Business. His most recent book, "Rewirement: Rewiring The Way You Think About Retirement," details the behavioral finance issues that hold people back from a more financially secure retirement.