| Does your family have an emergency plan? | | | | disaster due to lack of proper planning. In my own |
| Emergencies happen when you least expect | | | | life I experienced severe devastation upon the |
| them. That is why they are called emergencies. | | | | death of my spouse and business partner. This |
| You should be prepared for natural disasters as | | | | was the major reason I became a Financial |
| well as human made disasters. Knowing what to | | | | Advisor. I hoped that I could help families prepare |
| do after a disaster, before it occurs, makes all | | | | so they would not be caught off guard in the |
| the difference when seconds count. | | | | event of an unexpected occurrence. |
| Some common natural disasters are floods, fires, | | | | While insurance is always an excellent source of |
| earthquakes, tornados and hurricanes. Floods, fire, | | | | funding at these times most often it is not |
| and tornados, nature's most violent storms can | | | | sufficient to cover the entire need. Consider what |
| happen anywhere while earthquakes are prevalent | | | | it would take for you to be able to continue on in |
| only over or near fault-line areas. Hurricanes are | | | | the lifestyle you currently enjoy. Don't buy |
| severe tropical storms that form over water and | | | | insurance according to your current need only; |
| bring strong winds, rain, and floods. Lately we | | | | inflation is approximately 4% annually so compute |
| have been made aware of the impact of | | | | that into your planning figures as well. |
| tsunamis as well. | | | | Oft times families insure only the bread winner |
| On the man-made side we have biological and | | | | but what would happen if the family caregiver |
| chemical attacks, nuclear blasts and radiation | | | | died? Would you be able to afford to hire |
| threats. Nuclear blasts are explosions with intense | | | | someone to care for the children while you |
| light and heat. They bring with them a damaging | | | | continued to work? What about if your child died? |
| pressure wave and widespread radioactive fallout | | | | How would that affect your zest for life and |
| that can contaminate the air, water, and ground | | | | work? Too often we fail to evaluate all the |
| surfaces for miles around. Radiological dispersion | | | | possible reasons for, what I call, Contingency Plan |
| devices (RDD) are the use of explosives to | | | | Funding. Taking the time now can save you much |
| spread radio-active materials over a targeted | | | | heartache and stress later. |
| area. | | | | When looking at ways to invest your resources |
| Then we have the most common of all | | | | besides insurance you may want to consider |
| emergencies, the unforeseen illness, death, or job | | | | annuities and retirement plans. IRAs, Roth IRAs, |
| loss. Let's not forget the major repairs such as | | | | and Annuities will allow you to put money aside |
| car trouble or a major appliance failure as well as | | | | that, in emergency, you can tap into. IRAs are |
| other household repairs that seem to crop up | | | | tax deferred and you pay taxes only on the |
| when we least expect them. | | | | earnings, while Roth IRAs are taxed up front only. |
| While dealing with the natural and man-made | | | | With all of these plans you will face penalties for |
| disasters that can threaten your very lives, the | | | | early withdrawal unless you have certain types of |
| best plan is to designate a meeting place for your | | | | emergencies. However with annuities you incur |
| family, in the event that the disaster occurs when | | | | what is considered a 'loan' that you will have to |
| you are separated from each other. Pick two | | | | pay back or those penalties will hit you hard when |
| places, one near your home and the other away | | | | you annuitize. |
| from your neighborhood, in case you can't get to | | | | If you don't have a Financial Planner, find one! If |
| the home location. Pick a friend or relative who | | | | you need advice as to who to hire to help you |
| lives out of the area that you can call to let them | | | | review your Contingency Plan contact a friend or |
| know you are OK. You can download the Family | | | | trusted advisor. Be sure to interview more than |
| Preparedness Guide at ( | | | | one Financial Planner. Look closely at the fees for |
| The more common emergencies are more likely | | | | service. You need to trust this person completely |
| to occur, that is why they are considered | | | | and to be comfortable with them; you will be |
| 'common emergencies'. As a retired Financial | | | | working closely with them for many years to |
| Planner I have seen families devastated by | | | | come. |