On the second half of 2013, we have seen and
experience tumultuous numbers of natural disasters, man-made catastrophe typhoons,
armed conflicts brought about by political and ideological indifferences, and earthquakes.
These incidents have inculcated in the minds of many how to these disaster may
it be man-made or caused Mother Nature have devastated and cause disruption on
our lives and our daily routines. In one statement made by an disaster and risk
management expert on TV that the "Typhoon Yolanda will be benchmark for
disaster preparedness in the years to come" if there will any more
Category 5 storms coming in the archipelago.
The tragedy of these events made a deep impact to
the consciousness and minds of Filipinos. Seeing the extent of damage is
overwhelming for our local and national government in which it is already
overburdened and limited resources are stretched to the limit. With aid coming
the private sector and international relief pouring in as well to help mitigate
the needs of these affected folks.
Many experts believe we are still ill prepared
for such disasters and take for granted the warnings. But we can take the
initiative of preparing for such disasters This year, Australian Agency for
International Development (AusAID) together with Metro Manila local governments
units and other national agencies had made an assessment and released their report
on the earthquakes and active fault lines in Metro Manila and nearby areas. Their
predictions proved in a possible event of a 7.2 magnitude earthquake will hit
the metropolis alone there will be an estimated 37,000 fatalities.
Is financial planning necessary for these kinds
of events?
The answer is absolutely “Yes”, financial
planning in possible disasters is very essential for everyone before natural
catastrophes hit us. It still involves the standard non-investment topics such
as estate planning, asset risk protection and insurance risk management. You
may not know what might happen during those times from damage of property to
loss of life of a loved one in those challenging times. It’s better to prepare
for worst case scenario.
Is financial preparedness important during times
of crisis?
Yes, despite financial advisors and planners
think that it is out the realm of financial planning with minority of financial
planning practitioners do this of incorporating crisis management as well. The
importance of saving emergency cash on hand and keeping safe of important
documents from driver’s licenses, passports, birth and marriage certificates,
family health records, insurance policies, real property titles, will and
automobile records and other documents that are very crucial and are part of
this process. Other steps to remember in ensuring the safety of these vital
documents are to kept with digital backup copies or placing them in a safe deposit
box in a safe area or even filing them in a private file hosting site online could
also be done in making your records safe.
When the disasters strikes, what to do next?
Crisis Management is very important in the event
of these unforeseen natural disasters. Media outlets are proactive in
participating in such drills or information dissemination campaigns to the public
on safety during times of possible disasters. Most survival experts and United States
Federal Emergency Management Agency (FEMA) would advise preparation of
emergency grab and go bags lasting for 3 days and must contain basic essentials
like food, water, batteries, transistor radio, flash lights, match sticks,
emergency medical kits, water purification tablets etc. Communication devices
such as basic mobile phones or a two way radios are very useful in dire
situations along with evacuation plans and exit strategies on where to go and
evacuate. Briefing instructions is needed to children and other family members
if getting separated from the group is
necessary in if such case arises. Although, this is outside of mainstream
financial planning realm the purpose of this is to ensure safety and prevent
accidents from happening in times of peril.
Financial preparedness, financial planning and
crisis management is really a necessity for those who are preparing for the
worst case scenarios happening in the near future. In times of calamities and
disasters we should be ready. These three are inter-related in unlikely
situations that could possibly happen. It may sound pessimistic or grim for
some people but somehow we have to be realistic and take the initiative to
educate, protect and prepare ourselves, our loved ones and our properties from
unforeseen perils.
CRB Benedict Baluyut, is a certified real estate
professional (Real Estate Broker) a regular member of Registered Financial
Planner - Philippines. He writes from time to time with Registered Financial
Planner Column at Business Mirror. Catch me on Facebook page Pinoymoneyvantage |
Follow me on Twitter | Add on Google + or visit his
official blog at http://www.pinoymoneyvantage.net.
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