But what does your advisor need to do? The management of liability risks can only be effected in services that actually integrate the management of financial assets and financial needs over time. Individuals need to ask the following questions Is this risk assessed by your advisors? Do you know how much security your portfolio provides against such risk? Are you able to influence the amount of protection within your portfolios? Has the income and capital you have taken from your portfolio had to be significantly reduced because of a market correction, crash, economic recession and/or a prolonged decline in the value of your investment?
Within the financial services industry this risk is not generally assessed. What does your advisor need to do? Liability risks within the portfolio need to be constantly managed. The balance of the portfolio between low risk assets and equities need to be constantly managed where income and capital demands on the portfolio materially affect the structure. This means your portfolio needs to plan ahead and in order to plan ahead, advisors need to be able to value markets and they need to be able to construct portfolios that relate asset allocation to the size and timing of financial needs. Indeed, most normal market movements have little or no impact on the ability of assets to meet financial needs. Most downward movements can be recovered in days, if not weeks or months. | 
