Risk Management

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    What is Risk Management at
    Allegheny Financial Group?

    Even if you do everything right, life sometimes has other plans. That’s why it’s so important to take steps to mitigate the financial impact of the unforeseen. As part of our financial planning process, your Allegheny financial advisor will evaluate your tolerance for risk and provide guidance on the following risk management solutions to help protect you and your family should the unexpected strike.

    Investment Risk Management

    As markets go through their natural cycles, there will be inevitable drawdown periods making effective investment risk management essential. A long-term approach to asset diversification, investment selection, and ongoing monitoring and rebalancing will act to both minimize risk, and in turn, maximize returns. A proper investment risk management plan will also keep the focus on the objective and reduce the likelihood of making a short-sighted emotional investment decision to the detriment of your goal. Our financial advisors’ approach is to construct a properly-tuned portfolio that will give you the peace of mind knowing you’re taking the appropriate amount of risk and getting the most out of your portfolio returns.

    Life Insurance

    An unexpected death can be a life-altering experience for family members left behind. Life insurance provides the peace of mind that comes from knowing that their financial security is assured. Your Allegheny Financial Group advisor can recommend the type of life insurance policy that meets your specific needs.

    Long-Term Care Planning

    Seventy percent of people who turn 65 will require some form of long-term care. And the costs of that care can quickly erode a lifetime of savings and investments. Long-term care insurance can preserve your savings and income, help you have a greater say in where care is received, and relieve your loved ones from the responsibility of caregiving. Our financial advisors can help you determine if long-term care insurance is a viable option for you.

    Disability Insurance

    Today, a 35-year old has a 50% chance of becoming disabled for 90 days or more before turning 65. Short- and long-term disability insurance options provide a steady source of income — and protect your savings and investments — should an injury or illness prevent you from working. Allegheny financial advisors can assist you with determining an appropriate amount of coverage.

    • What is financial risk management?

      Every financial decision — whether by an individual, organization, or business — involves risks. Financial risk management is the process of identifying, analyzing, and taking precautionary steps to reduce or avoid those risks as they relate to your family and your financial goals.

    • Why is risk management important in finance?

      Usually, the term “financial risk management” is associated with big corporations. But risk management is equally vital in personal finances and is a key component for ensuring that individual investor goals are achieved.

    • What is disability insurance, and how does it work?

      Disability insurance replaces a portion of an employee’s income when they can’t work because of an illness, injury, or disability. On average, disability insurance covers up to 60% of an employee’s earnings.

    • What is long-term care insurance, and who needs it?

      This type of policy covers basic, long-term services, and support for daily needs due to a chronic illness, disability, or condition such as Alzheimer’s disease. While health care insurance or Medicare helps pay for immediate medical expenses, long-term care insurance helps to pay for personal or custodial care for necessities such as bathing, dressing, or eating.

    • What is life insurance, and what types are there?

      Life insurance protects loved ones or dependents you leave behind upon your death. There are two basic types of life insurance to consider. Term insurance is similar to “renting.” You have the life insurance for a certain period, and then it expires. Term insurance provides for a short-term, temporary, or specific need. Permanent insurance is like “owning,” as the life insurance builds up cash value that may allow you to retain the policy for the long term even after you stop paying premiums into it.

    • Why do I need life insurance?

      Whether you are single, married, have children, or own a business, life insurance supports your family or those who depend on you if an unforeseen circumstance should arise. Some of the benefits of life insurance include: a means to pay for funeral costs, pay off debt, estate taxes, or any final expenses; income replacement; a legacy to leave for your family or charity. As a part of a financial plan, your financial advisor can help you determine your life insurance needs, the type of insurance that is best for your situation, and related costs.

    • How much life insurance do I need?

      There are many factors to consider when determining the amount of insurance coverage you will need, such as your life stage, circumstances, and the standard of living your family will want after you are gone. You will also need to determine your family’s income needs and whether other resources are available (such as social security benefits) to fund those needs. A financial advisor can conduct a thorough analysis of your situation and assess how much insurance you will need as part of your risk management plan.