Public Information

Community Outreach

Promoting the Value of Financial Planning
On May 23, 2005, our director of government relations and our immediate past-president met with representatives of the North Carolina Secretary of State’s Office to discuss the value of the financial planning process and how our chapter might be able to assist them with the “Tobacco Settlement Education Program” and other initiatives in financial literacy.  In addition, our chapter has maintained contact with the State Treasurer’s office and their North Carolina Saves committee.  We have been active in the Charlotte Saves program for several years, providing speakers and financial planning sessions.

FPA Charlotte members have conducted twenty expert seminars and have provided fifty hours of one-on-one counseling sessions this year with members of Charlotte Saves.  We support this nonprofit organization which has helped more than 1300 individuals in the Charlotte Metro area become savers by increasing their knowledge and awareness of building wealth and setting a specific savings goal.  Since 2002 more than 260 free financial literacy workshops have been conducted at 55 jobsites, public libraries, and other community locations.

FPA Charlotte members conducted five seminars on June 21, 2005, for employees laid off from the Duracell plant in Lexington, North Carolina.  The primary topics were job loss and retirement planning.  On August 31, our members conducted a similar seminar for the Greensboro, North Carolina Joblink.  In addition, we are in the planning stages with the Davidson County Vocational Rehabilitation Services to offer a series of seminars for more than 500 employees soon to be released by a local manufacturing plant.  These pro bono activities seem to be growing in frequency from “word-of-mouth” county and state referrals, resulting from the cumulative public awareness efforts of our chapter over recent years.

For information on FPA Charlotte Pro Bono activities and/or how we can assist your organization or membership, please contact Gene Curtis : (704) 556-7919 or fpacharlotte@aol.com.

In These Times, an Annual Insurance Check-Up Makes Even More Sense

The pictures coming out of New Orleans in the past few weeks are a reminder that disaster preparedness has many dimensions. While it’s a good idea to pre-think evacuation plans, gather important documents in a safe place and make family contact lists, it’s also important to check the coverage on every insurance policy you have.

Why? Because when disaster is imminent – as it can be with advance hurricane warnings – insurers will not grant you coverage changes or additions.

Here are points to consider in that process:
Medical deductibles and limits: Property can be replaced. Lives can’t. In a disaster, you or your family might need to go to an emergency room. Does your current coverage provide for such out-of-network care? As part of your evacuation plan, you might set aside available funds in an account with a bank that has a nationwide network of ATMs so you can access ready cash wherever you go.  Don’t rely entirely on credit cards if you don’t have to.

Prescription coverage: See what options your health coverage provides you for prescription discounts and prescription-by-mail availability so you can have uninterrupted access to important medications wherever you are.

Homeowner’s inventory: If you’ve been routinely paying your annual premiums without checking coverage for collectibles, home office equipment or additional furniture or assets when you’ve renovated your home, start making a list of those changes and review them with your agent. Also, take up-to-date photographs or video of all major belongings in your home and keep them in a safe place. While you’re at it, send a set to a trusted out-of-state friend and relative.

Home replacement coverage: Go to several providers to estimate how much “guaranteed replacement” or “replacement” coverage costs. With so many homeowners so heavily mortgaged, this coverage is essential.

Flood and earthquake insurance options: If you live in a flood plain or an earthquake zone, chances are you probably already know since that disclosure may be a legal requirement. But review the need for this coverage with your agent because it’s not a part of standard homeowners policies.

Annual Insurance Check-Up

Disability coverage: Many people get disability coverage through work, but some advisers think you should have separate coverage to supplement inadequate coverage or if you become self-employed or change jobs often. Make sure you have long-term as well as short-term coverage and that the benefits are sufficient to cover living expenses.

Hurricane and windstorm coverage: This coverage varies by state and sometimes by county. Some states offer windstorm coverage pools for people who can’t get private insurance through their agents. Residents of some coastal counties can get wind and hail coverage through FAIR (Fair Access to Insurance Requirement) plans, which are high-risk pools run by insurance companies. Your insurance agent or state insurance department will have more details.

Auto insurance: Most comprehensive auto coverage will cover wind, flood or earthquake damage. Could you afford the sudden loss of a working automobile in a disaster? If not, don’t cut your coverage. Of course, if your car is totaled, realize your proceeds may not cover the entire cost of a new car.

Business interruption insurance: A good business interruption policy on top of conventional business coverage can cover many business costs up to 12 months.  Structure your policy for the best coverage possible, and have all pertinent documentations (including your most recent IRS filing) in your emergency file.

Life coverage:  Talk to a number of agents about the appropriateness of coverage that will protect your spouse and children’s lifestyle and educational goals. That includes money for ongoing expenses, debt payments and tuition. Working spouses should also consider similar coverage.  As painful as it might seem, you might also consider burial coverage for children.

Create a disaster book: Create a disaster section in your binder or folder of information your loved ones would need in case of your death – make sure it’s close to the items you would have to grab in a crisis. The tragedy in New Orleans makes a single go-to guide sensible for those who need to access insurance, home and estate information in a crisis. It also makes sense to make a second copy for that relative that has your house photos and videos. In some cases, scanned copies may be stored on a secure Web site or an encryption-coded disk. Your financial planner can help you create this resource.

October 2005 — This column is produced by the Charlotte Chapter of the Financial Planning Association; www.fpacharlotte.org; email: fpacharlotte@aol.com  We can be a continued resource for your personal finance coverage. If you use this column in whole or part, please credit the FINANCIAL PLANNING ASSOCIATION OF CHARLOTTE  chapter.

The Financial Planning Association is the owner of trademark, service mark and collective membership mark rights in: FPA, FPA/Logo and FINANCIAL PLANNING ASSOCIATION. The marks may not be used without written permission from the Financial Planning Association. CFP™, CERTIFIED FINANCIAL PLANNER™ and the federally registered CFP (with flame logo) are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.