Top 3 Financial Risks And What They Mean

The number one financial risk, according to surveys and research, is longevity risk -- outliving your money; 63% of retirees and pre-retirees are more worried about outliving their money than they are of dying.

It's a multiplier of risks, meaning it multiplies other risks.

Market risk is also a concern. If you're in a down market long enough, you're going to run out of money. This ties back to longevity and outliving your money.

Sequence of returns risk is something else to worry about. A lot of people don't know what this is and they need to. Sequence risk is retiring in a declining market while withdrawing money.

The first 10 years of your retirement are the most important.

Example: A man retired in 1996 and his sister retired in 1999. They used the same exact strategy for their retirement, but the brother had retirement that lasted over 32 years  -- and he still had over a million dollars (which is what he started with). The sister was hit with sequence of return risk and was going to run out of money; she will most likely have to go back to work.

Peter Schiff, back in 2006, predicted the crisis of 2008. He didn't know exactly when it was going to happen, but he knew it was definitely going to happen. People didn't believe him.

Schiff is now predicting the same thing, but much worse than 2008. It's important that people are prepared before this happens.