Page 147 - Ready Set Retire

Ready. Set. Retire!

This is huge. This is the most important thing you can do when
it comes to planning for your income, as you will see.

Let’s look at this from the inside out. Insurance companies use
something called actuarial science, or the “Law of Large
Numbers,” to predict how often things will happen by studying
and measuring events and causes in large population groups.
These events might be automobile crashes, fires, sickness,
disability, death, or even not dying.

This is a huge advantage; so huge that it is generally accepted
that no one can possibly self-insure in most areas of life. In
nearly every area of life, home owners, health, automobile,
disability, flood, death, liability and many others, it is generally
accepted that purchasing insurance and spreading the risk is
the safe, prudent and accepted way to go...except in
retirement and long term care!

Somehow in these areas it is “too expensive,” “too exotic,”
“too dangerous,” too anything they can think of to use the
most tested, safest and conservative method of achieving
security: spreading the risk. No, much better to take all of your
savings and put it into the most dangerous and risky place
possible, like shale oil or a market subject to the whims of
weather, governments, terrorist attacks, interest rate spikes,
massive short selling and arbitrage, and even little city-states

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