What is Longevity Risk and How Should I Avoid Getting Caught Out?

There’s lots of risk when it comes to investing and building wealth. Inflation risk, market risk, timing risk, concentration risk, liquidity risk, credit risk, legislative risk, reinvestment risk, currency risk, leverage risk, and plenty more. 

Some risk we want to take – the ones that we can handle and will reward us with extra returns. Other risks provide no benefit to us and so should be avoided at all costs.  

Longevity risk, the topic of this week’s episode, falls into this second bucket, though it’s solution involves the deliberate undertaking of other risk. It’s an interesting one for sure, so let’s dive in.

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