|
|
Emergency Preparedness and Recovery
Investing for Your Future in Uncertain Times
Since September 11 new obstacles, such as war, small pox, and SARS are upon
us. We wonder what is next. As we hear bad news, some also wonder if saving for
the future is a good idea. Would we be better off if we just spent our
retirement nest egg?
These feelings are common for persons facing life-threatening situations.
Most experts suggest we acknowledge our negative feelings. Then, they advise
persons to both emotionally and financially enjoy every day, do fun things with
family and friends, and believe in a future and plan for it.
What we do know is that people who control what they can about a bad
situation often have an easier time coping that those who do not. Here are seven
precautions for these uncertain times.
-
Maintain an emergency cash reserve of 3 to 6 months expenses. Keep this money
in more than one place, such as both a bank and a money market mutual fund.
Also, keep some small denomination bills on hand. These are the same suggestions
given when we prepared for Y2K.
-
Back up all of your computer files, especially personal finance records, and
keep your virus software updated.
-
Keep a reasonable amount of canned foods and bottled water at home in case
food supplies are disrupted. Think about last year's ice storm. What foods were
you glad you had and what food did you wish you had?
-
Prepare a will and revise beneficiary designations on IRAs and other
retirement accounts. Name a contingent executor and beneficiaries for estate
planning flexibility. If you don't want to forget those young grandchildren,
name them as contingent beneficiaries.
-
Get your financial records in order, prepare a living will, a durable power
of attorney and get a life insurance needs analysis if you do not think you have
enough coverage to protect your dependents.
-
Believe you have a bright future and act and invest accordingly. To do
otherwise jeopardizes your financial security and that of your family.
-
Persons age 50 and over, can increase contributions for both IRAs and
tax-deferred employer retirement plans. Make the most of them.
For more information about managing your money, contact your
county Extension
office or check out some of the fact sheets listed below.
Resources
Money Management
Legal Issues
Keeping Records
Judith R. Urich, Ph.D., CFP
Retired
Family Resource Management Specialist
|
