Future-Proof Your Finances: Disaster Readiness, CDs, Entrepreneurship & The Next Big Tech Shift
We live in unpredictable times. Whether it’s a natural disaster, economic disruption, or a biotech breakthrough that changes how long we live—financial preparation is no longer just smart, it’s essential. In a recent session, I covered everything from protecting your home and money today to preparing for a radically different tomorrow. Here’s how you can future-proof your finances.
1. Be Financially Ready for Natural Disasters
Natural disasters don’t wait. Floods, fires, and hurricanes are increasing in frequency and intensity. That’s why I urge everyone to:
- Review your homeowner’s insurance to ensure it covers replacement costs, not just current market value. Rebuilding can cost far more than your home is worth today.
- Photograph and document everything you own and store it safely off-site or in the cloud. It’s the only way to speed up claims and prove losses.
- Keep your essential documents handy: passports, birth certificates, Social Security cards. You’ll need them if you have to evacuate or file claims—and to avoid identity theft.
2. Are CDs a Good Option Right Now?
For those with limited income or risk tolerance, Certificates of Deposit (CDs) still have a role to play.
- CDs offer principal protection and low risk, which is ideal if you can’t afford market swings.
- But remember: inflation cuts your buying power in half every 20 years, so CDs alone won’t grow your wealth.
- I recommend CDs, savings accounts, money market funds, or Treasury bills for near-term security. But for long-term growth? Diversify.
The best approach: “12 eggs in 12 baskets.” That’s how you protect and grow wealth over time.
3. Should You Refinance Your Mortgage?
The old rule said you needed a 2% rate drop to justify a refinance. That’s outdated.
- Even a small reduction in your mortgage rate can lead to thousands in savings.
- A 30-year mortgage gives you lower monthly payments, creating flexibility to invest the difference and build wealth.
- Want to pay it off early? You still can—but on your own terms.
Consult with a loan officer to run the numbers and evaluate closing costs. Don’t assume refinancing isn’t worth it—it might be one of the smartest moves you make this year.
4. Entrepreneurs: Form an LLC Now
If you or a family member runs a business, protect your personal assets with an LLC (Limited Liability Company).
- An LLC separates personal liability from business risk, shielding your home, savings, and family.
- Accidents happen—whether it’s a workplace injury or a contract dispute. Without an LLC, everything you own could be on the line.
- It’s worth the cost—usually a few hundred to a few thousand dollars with the help of a corporate attorney.
And remember: successful entrepreneurship takes an “all-in” mindset. Reinvest every dollar into growth and stay committed.
5. Should You Rent or Buy in Retirement?
If you’re considering relocating—say, to Florida—the question comes up: rent or buy?
- Homeownership has hidden costs: repairs, insurance, taxes, and rising climate risks.
- If you’re not staying put for at least 7–10 years, renting may be the smarter, more flexible choice.
- Run a detailed financial comparison: sell and rent, or buy a smaller home? The answer isn’t one-size-fits-all.
6. Life Expectancy Is About to Change—Are You Ready?
Tech futurist Ray Kurzweil predicts people could live to 125+ years in the near future, thanks to breakthroughs in:
- RNA therapies
- Stem cells
- Synthetic meat and vertical farming
- Smart healthcare systems
What does that mean for you? Retiring at 60 may be outdated. You’ll need to save more, stay productive longer, and rethink what retirement means.
7. The Tech Revolution Will Redefine Finance
Kurzweil also forecasts:
- 100% global energy from solar in under 20 years
- Vertical agriculture feeding the world in cities
- Nanotech and AI enhancing every industry
Your job? Stay healthy. Stay curious. And find ways to be productive in this new future. Whether you’re investing or building something new, those who adapt will thrive.
8. Don’t Fall for “Free Lunch” Financial Seminars
Lastly—please avoid free-lunch seminars. They may sound educational, but many are sales traps for high-commission insurance and annuity products.
As I like to say, that free lunch could be the most expensive meal of your life.
We’re heading into an era of enormous change—and enormous opportunity. Whether you’re bracing for a storm, building a business, or planning for a longer life, the key is to stay informed, stay flexible, and plan ahead.
All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.
Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.
