STUDIO CITY (CBS/KCAL) — Are you financially prepared if a natural disaster were to strike southern California?
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.