This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.

You might worry about the possibility of losing your principal or the likelihood of making a return, but beyond price volatility, other risks to be aware of include:

📌 Liquidity risk: This risk arises when you need to convert an investment into cash but face difficulties due to market conditions.

📌 Concentration risk: Occurs when a significant portion of your investments are concentrated in a single asset, country or sector. If that investment performs poorly, it can result in substantial loss.

📌 Reinvestment risk: Emerges when you need to reinvest cash generated from an existing investment. For instance, during a period of low-interest rates, reinvesting may yield lower returns.

📌 Inflation risk: In periods of high inflation, your investments may not keep pace with rising prices.

📌 Political risk: Legislative or political actions that can impact investments, such as government policies.

You want to avoid “Accidents” in retirement, and every accident is a result of a risk that you knowingly or unknowingly took on. Therefore, the key to avoiding your retirement “Accidents” begins with the identification of the risks.