Hi, I’m Ric Edelman, and on this episode of The Truth About Money, we dove headfirst into something we don’t think about often enough: how unprepared most of us are for the unexpected.

Step 1: Financially Preparing for Natural Disasters

We’ve all seen it—floods, earthquakes, hurricanes. These things don’t give warning. Yet when I asked people on the street if they were financially ready for a disaster, most said no. The biggest reason? They never thought about it. That’s a problem.

Here are three simple steps to make sure a natural disaster doesn’t wipe you out financially:

1. Review your homeowner’s insurance. Make sure you’re covered for replacement cost, not just the current market value of your home. That’s what it’ll actually cost to rebuild.
2. Photograph everything. Document your valuables—furniture, electronics, clothing—and store those photos outside your home or in the cloud.
3. Keep essential documents handy. I’m talking Social Security cards, passports, birth certificates—have them ready to grab and go.

Step 2: CDs Aren’t Dead—For the Right People

Someone asked, “Are CDs still worth it?” Look, if you’re living on limited income and need principal protection, then yes—CDs, savings accounts, money markets, and Treasury bills still serve a purpose. They won’t make you rich, but they’ll help you sleep at night.

But remember, over 20 years, inflation cuts your purchasing power in half. That’s why diversification is key. I say it all the time: Don’t put all your eggs in one basket. Try 12 eggs in 12 baskets.

Step 3: Form an LLC—Even for the Family Side Hustle

If you or your spouse are running a small business, I strongly suggest forming an LLC. Why? Because if something goes wrong—someone trips and falls, equipment breaks—your personal assets (your home, your savings) could be at risk.

LLCs protect your family’s finances. They’re not expensive, and a quick consultation with a corporate attorney can save you from big headaches later.

Step 4: Rethink Life Expectancy—125 Is the New 85?

I know it sounds wild, but with biotech breakthroughs and AI-driven medicine, many researchers—like Ray Kurzweil—predict we’ll be living to 125 and beyond. That changes everything about how you plan your finances.

If you’re 60 and planning to retire, but you could live another 60+ years, will your savings last? That’s a conversation worth having. And it means retirement at 60 might become a thing of the past.

Final Thoughts

Being financially smart isn’t just about 401(k)s and investment portfolios—it’s about preparing for life’s curveballs. That includes natural disasters, inflation, evolving tech, and even how long you’re going to live.

Think big. Plan early. And always be ready—not just for tomorrow, but for 50 years from now.

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