Coping With Financial Catastrophe

In case you're among the .001% of the populationchoice. I'll offer you three suggestions about how
who might not have noticed (who knows?to react to a crisis: 1) do only whatever's
perhaps you've been in a coma for the past siximmediately necessary to preserve the life and
months), the world's financial institutions are inlimb of yourself and others; 2) stop, breathe,
meltdown. Commentators the world over arethink, gather information, consult experts, assess
using the term 'unprecedented' to describe what'syour risks, plan; 3) only act if and when a) you
happening. That means, of course, that there arehave contingency plans already in place or b) your
no precedents to guide you and me in ourproposed course of action carries both a
attempts to figure out what our options might be.reasonable level of risk and a reasonable chance
Do you shift what money you have left aroundof success. Keep in mind that reactive decisions
to stop the erosion, or do you sit tight and dohave a very strong tendency to make a crisis
nothing with the conviction that eventually thingssituation worse. Doing nothing very often proves
will turn around and improve? Do you act, andto be the best course of action.
lock in your current condition, turning a paperMost people experience an overloading of crisis
financial hemorrhage into a cash loss, or do youexperiences (and, consequently, a lot of reactive
do nothing and risk your remaining assets in adecision-making) during midlife. The reasons behind
world market that seems to be spinning out ofthis become clearer once you stop and think
control?about what's going on in your life. On the inside,
For anyone who's a Douglas Adams fan, I wantyou're experiencing a highly emotionally-charged
to share with you the very best advice possible:period of reevaluation. It often happens that all of
as it says in big letters on the front of theyour assumptions and presuppositions come under
Hitchhiker's Guide to the Galaxy, "Don't Panic!"scrutiny at some time or other during midlife. As
(and, of course, while you're at it, always knowa result, your long-standing decision-making
where your towel is). The sage advice you'veprocesses have come to a grinding halt. New
been offered in regard to panicking - don't - canvalues are intruding into old habits. It takes more
very easily be forgotten, especially when you're atime and energy than ever before in your life to
guy going through the midlife transition. Since yourmake an authentic decision.
inner world tends already to be in turmoil, a globalMeanwhile, on the outside, your life is in full-gear
financial crisis is sure to throw fuel on the fire.and highly committed. You face critical challenges
When your life is in turmoil and you feel like you're(and choices) having to do with your relationships,
hanging by a thread, there's nothing quite like ayour family, your social involvements, your
suffering a direct hit to both your career andcareer, your finances, your health, and so on,
your financial future to send you over the edge.seemingly forever. In point of fact, you're 'at the
The collapse of the financial markets representstop of your game.' Also, the stresses and
only one extreme example of the catastrophicconcerns that face you are both broad and deep
events that could (and often do) occur duringand carry with them some very serious
midlife. What do you do? How do you recover?consequences for your future. At midlife, more
What's the best plan? If you're asking me tothan at any other time before or after, your
provide you with an effective, safe and secureresponsibilities are maxed out, your resources
remedy to your woes, you're asking the wrongstretched to the breaking point.
guy. Everybody suffers - including me - when theThis is no time to be handed a catastrophe, yet,
catastrophe effects the global economy. I havebecause of where you are in the course of your
to make exactly the same kinds of decisions thatlifetime, this is exactly when catastrophes are
you're faced with right now. Furthermore, I'mmost likely to occur. This time in your life most
neither an economist nor a financial adviser and,requires good contingency planning - exactly the
as I mentioned earlier, this situation isskills that younger men are most reticent to
unprecedented. What I can offer you aredevelop. You need to have an emergency
suggestions regarding the mentality you need toevacuation plan, and you need, if possible, to
adopt toward the crises that you're bound to beconduct personal 'fire drills,' so you won't have to
facing during midlife.react blindly when the unthinkable does happen.
First, let me remind you about catastropheYou don't have to produce a catastrophic
theory. I've been using the term 'catastrophe'response plan for every possible eventuality: that
liberally because it has a particular meaning apartwould be both silly and impractical. But, you do
from the connotations of 'disaster' and 'tragedy'.have to have in place such plans for your critical
Technically speaking, a 'catastrophe' doesn't needrelationships, your financial security, and your
to be something horrible. 'Catastrophe' refers to ahealth.
watershed point or a point of no return, beyondObviously, you can't put a response plan into place
which events are governed by a certainonce the catastrophe has occurred. Yet,
inevitability. People often call it 'the straw thatremember what I've said many times before: pain
broke the camel's back.' It's the one too manyis simply the universe trying to get your attention.
that collapses the house of cards, or the drop ofThere's a lesson to be learned from every crisis;
water that causes the container to overflow. Themidlife mastery consists in responding to these
financial markets have reached their 'tipping point,'crises by doing the possible, learning your lesson
and now you have little choice but to ride the(the first time), then moving on with the
catastrophic results back down to their point ofresources that remain. Since you're reading this, I
equilibrium . . . unfortunately, there's no tellingcan only assume that you're concerned with your
where that point may be.future. That, in itself, proves that you're on the
You need to understand that, wheneverright track. If the Second World War - and the
catastrophe hits, you necessarily go into reactiveincredible suffering of millions of innocent people -
mode. The almost irresistible need to dohas anything at all to teach us, it's that where
something proves to be a far greater threat thanthere's life, there's hope. So long as there's breath
the catastrophe itself. Chances are very goodin your body, no matter how damaging the
that a knee-jerk decision in reaction to eventscatastrophe, you can always do better tomorrow.
outside your control will prove to be a poor