Expect the Unexpected
Do you have some financial responsibilities that would continue if you died? Well, life insurance can take care of that.
Will you need a stream of income in the event you get hurt badly enough that you can’t work again? Disability insurance can come to the rescue.
How about the need to accumulate enough money so that someday you don’t HAVE to work (remember that “work optional lifestyle?)? That’s why we have investments.
But not all planning involves financial matters.
The reason we ask those questions as of lately, due to COVID 19, there is a good deal of discussion about being prepared. Prepared for what? Prepared for unexpected occurrences. But what unexpected occurrences?
You could drive yourself crazy preparing for every possible scenario, so don’t try. Remember the Y2K situation from 1999? How many people bought supplies that they never used and eventually threw away.
But you do have to think about a few that are likely and put some things in place in the event that “possibility” becomes a reality.
Here are a few that I think you need to consider and at least do some mental preparations:
#1. What would you have to do to be able to stay in your house for one month? What would you need? Toilet paper (I had to include that after the shortages we have been experiences with TP). Food? Water? Laundry detergent? Something to read? Can you exercise at home?
#2. What if you had to leave your house for a 3-night stay within 2 hours? What do you need to take with you? I have a “Go Bag” 99% ready-to-go with toiletries, underwear, socks, pants, shirts, etc. I have a bag that includes a cellphone charger, a set of earbuds, extra charging cords. If you have family, do the same for each person. For kids, snacks, wet wipes, drinks, books, pillows. Don’t forget the pets: food, water, treats, a blanket, multiple leashes. For everyone, make sure you can grab any medications that are needed.
#3. Can you locate your Birth Certificate, Social Security card, Passport, Marriage Certificate within 30 minutes? If something happened where you needed these, do you know where they are NOW? I suggest a small safe to store these items, and keep all paperwork in one envelop so you can grab things fast if needed. The same goes for medications. Having things in one place, and a list of who is taking what will be invaluable one day.
#4. Do you have an escape plan in the event of fire in your home? Beyond the Drop and Roll, or crawl on the floor, have a meeting spot that everyone in the house knows to go to so a headcount can be conducted. Running around looking for people is hard when you’re panicking, a meeting spot (such as a tree in the corner of your yard) cuts through the chaos.
This is all about thinking about scenarios and mentally preparing for them. Maybe the above are unlikely for you and there are others that have a greater chance of occurring, then do some mental prepping on those. But don’t get caught short when things get harried.
Financial Planning does exactly what its name says: It makes plans around financial things in your life.
And remember: Calm is Contagious.
Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. William R. Pintaric & Associates and Securities America are separate entities.
Written by David Pintaric.
Securities America and its advisors do not provide tax advice. Please consult with your tax professional regarding your individual tax situation.