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Larry Palmer, Financial Advisor with Morgan Stanley Private Wealth Management, stopped by the KCAL9 studios at noon on Friday to talk about preparing yourself financially for a natural disaster.
6 Tips to Help Prepare Yourself Financially for a Natural Disaster
- In the event of a natural disaster, similar to the earthquake, tsunami and energy catastrophe in Japan, everyone should have a one month supply of cash in a safe or alternate place.
- ATM’s will be down in the days following a natural disaster, and you may not have access to cash.
- Keep cash in different locations, such as your home and place of business in case one structure doesn’t survive a natural disaster.
- Make sure your assets are spread out among a few financial institutions and one should be a national institution.
- You don’t want to assume a local financial institution will be running in the event of a natural catastrophe.
- Choose one trustworthy person to be the Executor of your Estate.
- This person should have a hardcopy of your financial account information and assets (including passwords) so he/she can access your account in case you need it.
- Every person should have an updated Living Trust and Will (especially if you have kids) because you don’t know who will survive a natural disaster.
- If you are a Japanese citizen, and your W2 and investments are in yen, you have probably lost value.
- Geographical diversity of your assets is extremely important in the case of a natural disaster. Don’t keep all your assets in one nation’s currency.
- Most businesses, homes, and cars are underinsured. Be sure you have comprehensive insurance for your assets so that any liability you have based on a natural disaster can be transferred to the insurance company.