Expect the Unexpected

The child who was perfectly fine when I saw her last at 3:00 in the afternoon started complaining when she got in the minivan to go home at 5:00 pm. As the evening wore on her condition was obviously getting worse. Now it was 8:30, the other kids were just settling into bed, and our only option for medical care was the emergency room so I took her in. They evaluated her and decided to transfer her to the pediatric hospital where she could get specialized attention and where she was ultimately admitted to the hospital. Fortunately she got the care she needed, recovered quickly, and was released the next day but it was a sleepless night for both my wife and I. At one point I sat there and made the realization that hospitals are full of people today, who did not expect to be there yesterday.

Then I realized that this week marks the one year anniversary of the tornados which devastated Joplin, MO. 162 people died. Many more were injured. Damage estimates are approximately $3 billion. And no one in Joplin had any idea how their lives would change 24 hours before the storm.

Big or small, we all face disasters. It is not really a question of "if", it is a question of "what" and "when". We need to expect the unexpected.

After the 9-11 tragedy how many people vowed to put their affairs in order? How many did? To consider yourself protected for whatever comes your way, here is a list of five preparations to consider:

• Emergency Fund – Three to six months of expenses, readily available and held with little to no risk. This is the one fund where safety and liquidity are far more important than any earnings on the principal. The emergency fund can cover expenses in the event of a sudden change in employment status, medical deductibles, unplanned home maintenance or any other expensive surprises.
• Insurance – An annual review of medical insurance, disability income protection, life insurance, homeowners, auto, and liability coverage can prevent your insurance program from not being adequate for your current financial position. If you may want to consider keeping additional money in your emergency fund to pay for high medical deductibles or long waiting periods before disability insurance benefits begin.
• Future Planning – What do you want to happen if you become disabled, die, or can no longer speak for yourself? Who will make decisions on your behalf? Does that person know your wishes and intent?
• Legal Planning – Once you have defined your intent, your attorney can help you create the legal documents you need. At a minimum everyone should have a will or a living trust, a power of attorney for both medical and other matters, advance medical directives, and, if there are minor children involved, guardianship established for dependents. With your attorney and financial planner you should consider how you want to distribute your property after your death to minimize taxes, accomplish your intent, and maybe even support your favored charities.
• Record Keeping – Sometimes all the work is done, but it is vital that someone has access to critical documents in a time of need. It is a good idea that your spouse, attorney, and/or other advocate(s) know where to find
  • Birth, death, marriage certificates, adoption records and any divorce decrees
  • Wills, trusts, power of attorney and other legal documents
  • Key identification information including driver's license, social security, passport, and employee identification data
  • Property documents such as deeds for any real estate, titles and registrations for vehicles
  • Financial records such as recent bank and investment statements, credit card accounts, mortgages and loans, and recent tax returns. Perhaps even access to your up-to-date personal financial software.
  • A list identifying and giving contact information for executors, financial advisor, attorney, insurance agent, trustees, guardians, employer, employees, and any other individual who will need to step in if you are out of commission.
  • Password information to access computers, tablets, and smart phones. Don't overlook a list of user ids and passwords for online accounts including email and social media sites.

Being organized and prepared cannot immunize you or your family from unexpected tragedy or disasters, but you can certainly lessen the impact by developing a plan and reviewing it every year to make certain it is up-to-date.