Military Officer - March 2007 - (Page 46)

financialforum Be Prepared Before a natural or man-made disaster hits, don’t just stock your pantry — follow these suggestions from Phil Dyer, CFP, to ensure your family is prepared ﬁnancially. H What to Do When Online Is Ofﬂine ■ If you’re paying bills automatically online, make sure you keep a paper record of your payees, amounts due, and due dates in a safe location so you can keep up with your financial responsibilities even when Internet service is unavailable. urricanes, tornadoes, floods, potential terrorist attacks — all can wreak havoc on your property, livelihood, and ﬁnances. Yet how many people are prepared ﬁnancially for a sudden emergency? Here’s what you need to be ready. Immediate access to cash. With the increasing popularity of Internet banking, online bill-paying, and credit and debit card use, many people carry little or no cash. However, if the power is knocked out for an extended time, ATMs and credit card machines won’t work, and you might not be able to access your funds. It’s a good idea to keep one to two weeks’ worth of spending money in a home safe or portable ﬁre-resistant box that you can easily take with you when faced with an emergency. Consider having a small account with one to two months’ worth of living expenses with a local bank that you can visit physically if an emergency hits. Many experts also recommend keeping a roll of quarters handy to make calls from pay phones if your home phone service or cell phone service isn’t working. Your records. Many businesses are using online backup or storage for important records in case of a devastating ﬁre or ﬂood. Should you? An online storage system allows you to retrieve copies of important documents, such as birth and marriage certiﬁcates, divorce decrees, ﬁnancial account statements, etcetera, from any computer with a printer attached. This can be invaluable for reconstructing ﬁnancial records after a major loss. Prices on such services have been coming down signiﬁcantly, and many providers now charge between $5 and $15 a month. Even if you have an online backup, it’s a good idea to keep a binder or portable ﬁreresistant box with all important account information, passports, and documents that need to be in original form to be accepted by authorities. If you use a bank safety deposit box for irreplaceable records, be aware that you might not be able to access them quickly in a large-scale emergency. Your income. If you are still working or are self-employed, consider making plans for income continuation in the face of a disaster. Some of my ﬁnancial planning colleagues affected by Hurricane Katrina found out just how disruptive a big disaster can be to maintaining a livable income. Although it’s essential for small-business owners to have a disaster plan, employees also should ask their companies what contingencies are in place for a major emergency. Ask how your employer will meet payroll and make sure health care premiums continue to be paid; ask whether there is any emergency assistance available for affected employees and how the company will continue to service customers and clients. MO — Former Army Capt. Phil Dyer, CFP®, is deputy director for ﬁnancial education, Beneﬁts Information. To ﬁnd a ﬁnancial planner near you, contact Garrett Planning Network at (866) MOAA-GPN (662-2476) or www.moaa .org/garrett, or visit www.moaa.org/ﬁnancialce nter for other resources. PHOTO: GREG SCHALER 46 MILITARY OFFICER MARCH 2007 http://www.moaa.org/garrett http://www.moaa.org/financialcenter http://www.moaa.org/garrett http://www.moaa.org/financialcenter

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From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Forward, March 10 Top Cities Tell Us About It Fly the Plan Cover Story: The War Poster One Percent Pages of History Information Exchange Advertising Index MOAA Member Services Member Books Sounding Taps MOAA Calendar Encore

Military Officer - March 2007

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