FEMA and the US Department of Homeland Security sponsor National Preparedness Month every September to help remind people to be prepared for emergencies. While most people think about preparing for an earthquake, hurricane, or fire when they hear that phrase, preparedness should also include financial preparedness. We believe being truly prepared requires a holistic approach that includes all of your assets so you can protect what you’ve worked so hard to build.

This month is a good time to evaluate your insurance coverage, estate planning strategies, and overall risk preparedness to ensure you, your family, and your legacy are prepared and protected.

Why being prepared matters

Whether the cause is a natural disaster, a health crisis, unforeseen liability, or premature death, life can change in an instant. Of course, most of us hope that these things will never happen, and they may not. However, putting off planning for them won’t keep them from occurring. It’s better to spend some time and money preparing for something that doesn’t happen than not to be prepared if something does happen. National Preparedness Month is a great time to take care of the following things:

Insurance

Talk with your insurance agent to discuss your areas of liability and coverage options, including the following areas:

• Make sure your home is adequately covered. With inflation and a significant increase in construction costs, your current values may be too low. If you’ve remodeled, hired household staff, or are renting out space, you’ll want to be sure your coverage reflects this.
• If you have high-value art, jewelry, or other collectibles, make sure those have coverage, as well.
• If trusts or LLCs own property, ensure that the insurance coverage reflects that titling.
• You should also consider umbrella coverage roughly equal to your net worth. This provides extra protection against lawsuits and claims over and above your homeowners and auto coverage. This is especially important if you host events or have household staff.

Estate Planning

Review your estate plan to make sure you understand exactly what will happen with your assets when you die and how your heirs will be impacted. Your wealth manager can help with this review.

• Consider sharing your plans with your heirs so they understand what you’re doing and why. Discussions now, even if they’re a bit difficult, can alleviate a lot of pain and arguments among siblings and family members during a difficult time.
• Confirm that the people you have named as personal representative and/or trustee are up to the task.
• Ensure that your assets are titled in accordance with your estate plan; if you’re uncertain, check in with your attorney or planner.

Disaster Preparedness

Understand what risks you and your family face in your area. Are you in a flood zone? Are tsunamis a possibility? What about wildfires, earthquakes, or hurricanes? Taking just a few steps to prepare can make a world of difference if one of those events becomes a reality. Ready.gov has excellent resources available on its website.

National Preparedness Month is a good reminder that your financial security is about more than just earning and growing wealth; it’s also about protecting your wealth and legacy. Ensuring that you’re adequately insured, that your estate plans are in place, and that your financial strategies are aligned with your long-term plans can give you peace of mind so you can enjoy what you’ve worked so hard to build.

Your Fulcrum team is here to help you build and safeguard your legacy. Please reach out to us if you have questions about protecting your assets and your future.