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What's Next?

I like living in the Northeast. Yes, we have long, cold winters and our summer heat waves can melt pavement but at least we don’t have to deal with unpredictable things like earthquakes and hurricanes –no, wait…that isn’t right, is it? If I had written last month that we would experience both within a few weeks of each other you would all think I was going soft in the head. Yet here we are shaken, windblown, and soggy.

The big question on my mind is what’s next? Some say I tempt the fates by asking such questions, but I’m not the only one who does this. While talking to a client amid a days-long power failure, he went so far as to turn away from his desk, open the window and yell: “Is that all you got?” He is much more courageous than I am. Just wait until his power comes back on and he finds HBO running the movie “2012” again; that will fix him.

They say if a hurricane doesn’t leave you dead, it will make you strong. Are you feeling any more powerful than you were last month? I think it is really more about the lessons we learn after going through a dangerous or traumatic event. Last month I wrote about controlling your fears enough to keep your head about you so you can make rational financial decisions. Given the events of late, I think the strength we are left with is the ability to overcome even greater obstacles. After all, living through two natural disasters in as many weeks must count for something!

If you honestly want to make the most of these experiences then you must uncover the lessons they offer. And what might those be? In no particular order:

-Keep a supply of bottled water on hand and working flashlights at the ready. Always a good idea; enough said.

-The media often exaggerates. Considering the tendency for media to hype storms, it is crucial for meteorologists to stick to the hard facts and not over-warn in the hope of encouraging people to take effective action. Some of the reports made this storm sound scarier than it really was. The hyper media scenario described a major hurricane coming straight at us, rather than the reality of a weakening storm moving its way up the coast.

But, did journalists and policymakers make too much of this storm? Possibly, but maybe that was not so bad says David Ropeik, a consultant on risk perception, and author of the book: "How Risky Is It, Really?1

"Yes, the information the media presented was wrapped up in breathless alarmism," Ropeik, wrote recently, "but we forget two things: first, surveys show that the public knows that about the media. And second, under all the alarmism was really important information that helped people stay safe: storm track timing, tips for preparedness, evacuation routes. It was alarmist in voice, but an informative tool. And that probably helped more than it hurt. ... There was no panic, there was no hysteria." The storm's toll — more than 30 dead, plus an estimated $7 billion in property damage — clearly demonstrates that Irene was more than just hype. "I daresay the people who are saying there was overreaction are not those who are still without power, or who suffered property losses, or who lost loved ones," Ropeik said.

Risk is REAL

The main lesson we can take from the past month is that real risks exist. The earthquake did not do much in the way of damage but it sure gave us all a bit of a wake-up call. Perhaps that is why most everyone took Irene so seriously. The risk of personal injury and or property damage in the face of a hurricane is palpable. People actually board up their houses and businesses, gather up the kids and pets and head to higher ground. When it’s over, they return to deal with the damage. They recognize an actual risk and yield to it. They do the smart thing and protect themselves.

Hurricanes are not the only kind of storm to be concerned about. There are plenty of financial storms swirling about that can cause ruin of a different kind. If the best way to survive a hurricane is to be alert, well informed, and prepare yourself for the worst, why not take this lesson and apply it to the other key aspects of your life?

Just as you need the right tools and information to survive a hurricane, you likewise need the proper tools and information to survive a financial storm. The right tools can help protect your assets from the ravages of volatile markets and harsh taxation; the right information can substantially reduce future financial risk.

Structured settlements remain one of the best tools available today for this purpose. They provide unrivaled reliability of payment in today’s volatile world. They are not available to everyone - you must have sustained a personal injury to qualify for one – but those who DO qualify have a rare opportunity to prepare for financial storms in a way most of the rest of us cannot.

Are you working on resolving a personal injury claim? Would you like to create a plan that means true durability when the financial winds start shrieking? Call Frank C. Kilcoyne, CSSC at 800-544-5533, I am here to help.

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1David Ropeik, How Risky is it Really: Why Our Fears Don’t Always Match the Facts, McGraw Hill, 2010.