After many years of working, saving and investing for the future, many households eventually arrive at a point where they have accumulated significant assets, both in terms of number and value. I am talking not just about real assets such as houses, property, vehicles, collectibles and more, but also financial assets including holdings in investment and retirement accounts like 401(k)s and 403(b)s.
For many people, especially those who are further along in their careers and nearing retirement, their financial holdings may represent their largest asset. For a good number of them, these assets are bigger than the equity value they have built up in their primary residence.
These assets are also the most at-risk from a loss in value. While individuals can insure property and belongings against loss (for example, home insurance protecting against loss from a fire), there really is no insurance available for financial holdings. At least not in the traditional sense.