The Risks Your Portfolio Can’t Cover

A retirement plan can tell you how to replace a paycheck, cover your bills, and keep your investments on track. What it can’t do is make sure someone shows up when you need help getting dressed, recovering from surgery, or making it to a doctor’s appointment when you can no longer drive.

We like to think of retirement planning as a money problem – and in many ways, it is. But the most expensive, most disruptive risks you’ll face later in life aren’t purely financial. They’re about care – who will provide it, how consistent it will be, and what happens when the person you counted on can’t or won’t step in.

It’s not a comfortable topic. People tend to assume that when the time comes, “someone” will be there – a spouse, an adult child, a sibling, a friend. But life doesn’t always line up neatly with those assumptions. Spouses may have their own health issues. Adult children may live across the country, be buried in work, or simply be unable to handle the demands of caregiving. Friendships shift. Neighbors move.

And even if you can afford to pay for professional help, there’s no guarantee it will be reliable. Home health aides can be inconsistent. Agencies struggle with staffing. Costs vary widely by location and can spike without warning. Medicare doesn’t cover long-term custodial care, and long-term care insurance (if you have it) comes with its own fine print and limitations.

Why this matters in planning:

• A single fall, surgery, or diagnosis can flip your life from independent to dependent overnight.
• Care needs aren’t always short-term. Chronic illnesses like dementia, Parkinson’s, or mobility impairments can require years of ongoing help.
• The “cost” of care isn’t just money. It’s also the emotional and logistical toll on the people around you.

The real safety net isn’t your portfolio – it’s your relationships. Your investments can pay for a ramp to be built, but they can’t make sure someone comes over to help you up it. Your Monte Carlo simulation can tell you how long your money might last, but it won’t call the home health aide when they don’t show.

How to plan for the risks money can’t solve:

• Identify your likely helpers. Be honest about who is realistically available and willing to help and talk to them about it now, not later.
• Line up backups. Assume at least one of your first-choice helpers won’t be able to step in when you need them. Have alternatives ready.
• Know your local resources. Research agencies, senior centers, and volunteer networks in your area before you need them.
• Budget for care gaps. Even if you have family help, plan for stretches where you’ll need to hire outside assistance.
• Document your wishes. Powers of attorney, healthcare directives, and clear instructions can make it easier for others to step in without confusion or conflict.

You can’t spreadsheet your way out of every risk. But you can build a plan that accounts for the human side of aging – the part where the difference between a safe, supported life and a frightening one comes down to people, not percentages.