Emergency Preparedness Committee: January 2020 News

EMERGENCY PREPAREDNESS
Here are some twists to traditional New
Year resolutions that you should consider making (BUT, go ahead and keep those you’ve already made as well).
Insurance: As a starter, how about reviewing your homeowner’s policy. Take a look at the key factors, such as your replacement value, deductible, loss of personal property, and loss of use.
It may be useful to have a conversation with your insur- ance agent (When was the last time you did that?) espe- cially if you’ve owned your home for a number of years. In particular, review the replacement value if you’ve recently upgraded, improved or remodeled your house.
Use your phone to take pictures of EVERY room in your house, regardless of whether it is neat and tidy. (You might wait until Hubby is done with his shower.) Open all your kitchen cabinets and take pictures of the contents. Do the same for your closets and bathroom cabinets. Also, the garage and the outside of your home, too. These can be invaluable in the event of any loss or damage to your property, and WILL make a difference if you need to file claims. BTW, send those pics to the Cloud and even to your kids.
Credit Cards: Here’s another twist to a resolution. Got too many credit cards? Want to close some of those accounts? Might not be a bad idea, BUT don’t do it all at once! That could hurt your credit score. If you’re in the market for a major loan, such as a mortgage or auto loan, hold on until that’s accomplished. Close the accounts one at a time over weeks or even months. You’ll probably want to keep the cards with the highest credit limits and perhaps your oldest card as well. Monitor your scores to see how long they take to recover from each closure. Be sure to use your remaining cards occasionally by charging small amounts and paying the balance in full. That will keep the cards active and help prevent the issuer from canceling them.
Social Security: Another twist. Why in the world would you want to delay Social Security payments when you decide to retire? Because doing that will INCREASE the amount you receive if you extend the beginning of payments up to 70 years of age, providing you can afford to do so. It also reduces your tax consequences. I suggest you contact your CPA/ tax adviser to see what strategy is best for you. Google the National Bureau of Economic Research for papers on Social Security claiming strategies, including Recent Changes in the Gains From Delaying Social Security, Leaving Big Money on the Table and The Decision to Delay Social Security Benefits. Do some research and homework and call your tax adviser for specific strategies that might affect you.
Resolve to start the New Year off with better preparing
yourself and protecting your home and finances.
—Kent Wellbrock