2. Financial Disaster Strikes in Different Ways U.S stocks beaten up; S&P 500 closes at 5-year low Dow falls 500 points as Fed move in commercial paper gives only short respite Stocks tumble as Dow plunges below 9,000 for first time since 2003 Hurricane Ike damages top $550M in Ohio
3. First Responders Putting resources in play immediately following and sometimes before a calculated financial disaster. Financial Emergency Response Team Financial Advisor Banker Insurance agent Mortgage broker Real Estate professional Attorney Tax Advisor Government agencies FEMA
4. Assessing the need Identification the scope of the disaster Short term requirements Cash flow Liquidity Long term needs Future preventative planning Updated asset allocation Financial planning Tax planning
5. Assistance How to apply FEMA 1-800-621-FEMA (3362), Transitional housing Red Cross Shelters Grants Loans Unemployment Meals Points of Distribution
7. Risk Analysis Household Impact Analysis (HIA) In the event of a financial disaster: Where are we venerable? How much liquidity is available? Which assets are at risk? Impact to credit metrics. Which expenses will be on-going? Discretionary?
8. Conducting the HIA Disaster budgeting What are the core expenses? Which income streams are most vulnerable? What is the amount of time the assets would last if the income stream was unavailable? How liquid are my assets? Impact to Net Worth. Sources of leverage. Impact to assets Financial Property Personal What is the recovery time?
9. Develop the plan Functional development plan What resources can we invoke to support our plan? What are our critical support contacts? Resource list Which household functions could be delayed, eliminated, or transferred. Procedure
