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Looking for deep pockets. Smaller losses can be paid out of pocket, but larger losses may require a ‘deep pocket.’ (Photo: Shutterstock)

The Iconoclast’s favorite method of paying for loss is to stick someone else with it through risk transfer. The most common way is to pay “out of pocket” for minor losses, although larger ones, like a lawsuit, require either a “deep pocket” or a “fat wallet.”

We can anticipate and budget for some losses. Structures and automobiles require routine maintenance, and over several years, average costs can be calculated, budgeted and paid either “out of pocket” or from a “rainy day” account.

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