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"Prepared on Paper, Unprepared for Reality"
Years ago, I met Betty, a retiree who thought she was ready for anything. Finances in order, emergency fund topped up, house paid off. But when disaster struck, reality hit differently.
Her story is a reminder: 💡 Preparation isn’t just about assets, it’s about having systems that help you act when chaos hits.
Disasters don’t just damage property, they disrupt access to healthcare, strain finances, and take an emotional toll. For retirees, the stakes are even higher. A holistic plan addressing financial, physical, and emotional well-being can make the difference between surviving and thriving.
I’ve seen firsthand how confusing and frustrating disaster recovery can be. There have been instances, like in North Carolina, where FEMA’s response left communities feeling forgotten. It’s disappointing, especially when survivors are navigating so much uncertainty.
But here’s the truth: despite the flaws, FEMA is still a critical resource. Applying for aid isn’t always smooth, but not applying means missing potential help. My advice? Follow the process, stay informed, and avoid misinformation, it could make all the difference.
🌪️ Key disaster preparedness for retirees
Current FEMA Disaster Zones
🌀 North Carolina (Hurricane Helene): Details Here
🌊 South Carolina (Storms & Flooding): Learn More
🌧️ Missouri (Severe Storms): Assistance Info
How to Apply for FEMA Assistance
📱 Download the FEMA Mobile App
☎️ Call FEMA Helpline: 1-800-621-3362
💰 Accessing Your Money During Disasters
In times of federally declared disasters, retirees have special options to access their retirement funds and savings.
🔹 Qualified Disaster Recovery Distributions (QDRDs)
Eligible participants in 401(k), 403(b), governmental 457(b), and money purchase pension plans can withdraw up to $22,000 through a Qualified Disaster Recovery Distribution (QDRD).
Key benefits:
No 10% early withdrawal penalty for those under age 59½.
To qualify, participants must reside in a federally declared disaster area and have experienced economic losses related to the disaster.
This provision provides financial flexibility during recovery without the typical penalties associated with early withdrawals.
Pro Tip: Check with your bank or tax professional for details 👉 IRS FAQ
🔹 401(k) loan enhancements: Check with your employer to see if you qualify for a 401(k) loan
Disaster preparedness for retirees and higher loan limits: Plans can allow loans up to the lesser of $100,000 or 100% of the vested balance, double the usual limit
Extended repayment: Participants could delay loan repayments for up to one year
Longer availability: These enhanced loans can be offered for 180 days after the disaster declaration
🔹 Bank CD's- Early withdrawal penalties:
Most banks still charge penalties for early CD withdrawals, even during disasters
Penalties typically range from 60 to 365 days of interest, depending on the CD term and issuer
Some exceptions exist: Death or legal incompetence of the CD owner
I highly recommend you look into this option instead of the retirement accounts, sometimes the penalties might be less than taxes, specially if the retirement withdrawal takes you into a higher tax bracket.
🔹 Tax Filing: Extended tax deadlines for disaster victims
If you've been affected by recent wildfires and winds in Southern California, the IRS has announced critical tax relief measures.
Here's what you need to know:
Federal tax filings and payments originally due between January 7 and October 15, 2025, are now postponed until October 15, 2025.
Includes individual income tax returns, business filings, and IRA/HSA contributions for 2024
Important: Want to claim disaster losses? You can choose either your 2024 or 2025 tax return—whichever gives you better benefits. Consult your tax advisor.
🛡️ Your Health & Well-being
When disaster strikes, accessing healthcare becomes your top priority. Retirees often struggle to get life-saving medications and equipment during emergencies.
Don't wait - here are your immediate lifelines:
Life-saving treatments and equipment
On dialysis? Contact the End-Stage Renal Disease (ESRD) Network immediately - they'll help maintain your treatment schedule
Lost medical equipment? Medicare will replace oxygen tanks, prosthetics, and other crucial equipment
Need immediate support? Call 1-800-MEDICARE (1-800-633-4227)
Finding open pharmacies and care
RX Open Map: Use this tool to find open pharmacies in disaster zones (RX Open).
CMS Announces Resources and Flexibilities to Assist with the Public Health Emergency in the State of California
For full details, visit the official CMS announcement here.
🚨 Fraud Prevention Tips
Unfortunately, scammers target disaster survivors. Avoid becoming a victim:
⚠️ Verify contacts through official websites, don’t click random email links.
🚫 Avoid "urgency tactics." Legitimate organizations won’t rush you to act immediately.
✍️ Never sign contracts or make payments before verifying credentials.
More information to follow on this topic.
Before disaster strikes: Your protection plan
Why preparation matters: Lessons from those who weren't ready
Let's talk about the reality of disaster preparation, especially for retirees. When catastrophe strikes, it's not just about losing a home, it's about watching your entire retirement plan unravel in moments. I've seen too often: financial safety nets become unreachable, healthcare access gets disrupted, and the emotional toll can be devastating.
The hard truth is that by the time disaster strikes, it's too late to put protections in place. Unlike those currently facing devastation in FEMA-declared disaster zones, you still have the opportunity to build a complete safety net. Even if your home hasn't been affected, preparing now ensures you're protected when life becomes unpredictable.
This isn't just about financial preparation, though that's crucial. It's about creating a fortress of protection around everything you've worked for: your wealth, your health, and your peace of mind. In my decades of guiding retirees through crises, I've learned that true retirement security comes from having all three elements secured before you need them.
Protecting your wealth: The HELOC safety net
A Home Equity Line of Credit (HELOC) is one of the most overlooked yet crucial financial tools in your disaster plan.
Three critical facts about HELOCs that change everything:
No upfront costs unless you use it - most HELOCs have $0 closing costs
Apply for maximum amount - you only pay interest on what you use
Access emergency cash without liquidating investments
Real-world example: If you have $500,000 in home equity, don't just apply for what you think you'll need. Apply for the maximum. A $200,000 HELOC that you only use $10,000 of still only charges interest on that $10,000.
Keep this in mind:
Unlike a mortgage, a HELOC offers flexible borrowing options without upfront debt, giving you peace of mind during a crisis.
Apply/Open a Home Equity Line of Credit (HELOC) while you have stable income. I get multiple retirees who want to open this type of line of credit after they retire. Do it before while you have earned income.
To my fellow financial advisors
As someone who’s been a financial advisor for two decades, I’ve seen firsthand how proactive guidance can change lives, especially when preparing for the unexpected. Whether it’s setting up emergency funds, advising on HELOCs, or guiding clients through post-disaster financial recovery, our role goes beyond numbers.
Helpful Resource: Home Equity Lines of Credit (HELOC) Consumer Financial Protection Bureau
This isn’t just about preparing financially, it’s about avoiding the regret of not having a safety net when it’s too late to act. By taking this proactive step, you’re giving yourself and your loved ones the confidence to handle whatever life throws your way.
Preparing for the unexpected: 10 tips for hurricane season and natural disasters
Below is a list of 10 essential tips and resources I included in a previous newsletter to help you stay prepared and calm during any unexpected disaster. I recommend reading my full newsletter.
Know your neighbors
Never assume family can always be there when it matters most. Get to know your neighbors—it’s more than just safety, it’s about emotional well-being, too. Having someone nearby who can check in on you (and vice versa) can offer comfort in tough times and help you feel less isolated during an emergency.
2. Store emergency numbers
Keep important contacts, like the Coast Guard, emergency services, and your family, in a place you can find easily. If you don’t use a phone, write them down and keep them somewhere safe from water. Below I added several resources with links.
3. Create an emergency kit
Essentials like water, canned food, meds, flashlights, and a waterproof box for important papers. You want this kit ready to go. I also like to have these thermal blankets around in the car and maybe think about buying them and giving them to neighbors and family members. Click here for sample, I am not recommending these in specific, do your research.
Check out this article for more tips on how to get an early refill on your meds before a storm.
4. Prepare a "go-bag" with essentials
Pack a small bag with clothing, medications, and IDs. Add a clear tag that says the bag has important medical info. If you get taken to a hospital, they’ll know to bring it with you, and you’ll have everything you need.
5. Sign up for emergency alerts
Make sure you’re signed up for local emergency alerts that focus on seniors. These alerts help keep you updated when a storm is approaching. I’ve listed a few resources at the end, and don’t forget to share this info with family.
6. Have a plan as a retiree
Planning looks different when you’re retired. It’s not just about where to go if you need to evacuate, make sure you have access to emergency funds, too. Set aside some income that’s easy to get to if you need it for an emergency. Talk to your financial advisor to make sure this is part of your overall retirement plan. Let your family know your plan, too.
7. Banking safety for retirees
Don’t just rely on cash, make sure your finances are flexible for emergencies. Set up direct deposits for pensions or Social Security, and make sure your emergency fund is easily accessible without penalties. Secure your online banking with strong passwords and two-factor authentication. Have someone you trust ready to help manage accounts if needed.
8. Legacy and insurance planning
I’ve seen so many people get caught off guard with this. Make sure your loved ones know where to find key documents, things like insurance policies, wills, and a list of your accounts. Having everything organized can reduce stress in a crisis.
I’m really excited for how Grace™, the empathetic AI retirement assistant, will help retirees keep their legacy in order. Grace™ will make it easier for you to organize and protect your important details so your family knows exactly where to look when it matters. Join our waitlist here to be among the first users to meet Grace™ https://www.myplankeeper.ai/grace
9. Tip for financial advisors during hurricane season
It’s important to reach out to retired clients during hurricane season. Help them make sure they have an emergency financial plan, check that insurance policies are up to date, and make sure their loved ones can access key documents. Giving them peace of mind during these times reinforces your role as a trusted advisor.
10. Faith-driven planning
For those of us who rely on faith, times like these can test our strength. Psalm 46:1-3 describes God's protection and strength for His people in times of trouble. It emphasizes that God is a reliable refuge and source of help, even when the world around us seems to be in chaos.
“God is our refuge and strength, a very present help in trouble. Therefore we will not fear though the earth gives way, though the mountains be moved into the heart of the sea, though its waters roar and foam, though the mountains tremble at its swelling” (Psalm 46:1–3)
Fear can either freeze us or push us forward. When we lean on faith, we find the strength to handle whatever comes. It helps us stay calm, even when things get tough.
Recovery and rebuilding: Coming back stronger
The recovery phase can feel overwhelming. Recovery requires a systematic approach focused on three crucial areas: immediate stability, financial recovery, and emotional resilience.
First steps toward stability:
SEEK SUPPORT! and then some more support
Document everything - take photos and videos of all damage
Contact your insurance company and FEMA immediately
Contact your financial institutions about disaster programs
Review retirement accounts and follow part 1-always consult a professional
Protecting what you've built: Avoiding fraud
I’ve walked alongside clients who’ve faced unimaginable loss, loosing their homes or being affected by tragedies as well as loosing their sense of safety, and, sadly, even their financial independence after falling victim to disaster-related scams. One client told me, "I didn’t know who to trust, and I was desperate."
Why scammers target retirees during disasters Disaster-related fraud isn't random - scammers specifically target retirees during crises because:
Retirees often have accessible emergency funds
Stress and urgency can affect decision-making
Insurance payouts make you a prime target
Disrupted routines make it harder to verify information
Isolation from normal support systems increases vulnerability
Common disaster scams targeting retirees:
Fake FEMA representatives demanding payment
"Contractors" requiring large upfront deposits
"Insurance adjusters" asking for personal information
Charity scams exploiting your desire to help others
"Government officials" promising to expedite assistance
Red flags to watch for:
Pressure to act immediately
Requests for payment by wire transfer or gift cards
Officials asking for your Social Security number
Contractors without local references
Anyone asking for personal financial information
Remember: In disasters, legitimate help never requires immediate payment or personal banking information.
Finding emotional resilience in chaos
Mental health is your foundation during recovery. It affects how you handle every challenge and decision ahead.
💬 Immediate support available:
National Suicide Prevention Hotline: 1-800-273-TALK
Veterans Crisis Line: 1-800-273-8255 (Press "1")
Disaster Distress Helpline: 1-800-985-5990
Watch for these warning signs:
A change in sleep habits
A change in energy levels
Isolation and a feeling of hopelessness
Remember: Recovery isn't linear. Some days will feel like progress, others like setbacks. This is normal and part of the journey.
Resources for ongoing support:
Local faith and community organizations
Why retirement coaching matters during life’s biggest challenges
When I left Merrill to build My Plan Keeper, I wasn't just creating a business—I was answering a deeper calling. I saw how retirees needed more than just financial guidance during disasters. They needed someone who understood the whole picture: finances, healthcare, and emotional well-being.
Recovery isn't just about rebuilding what was lost. It's about:
Finding your new normal
Rebuilding confidence in your retirement plan
Creating stronger safety nets
Rediscovering purpose when everything has changed
A final note on recovery
Whether you're reading this in the midst of crisis or preparing for the future, know that you don't have to navigate this journey alone.
If you or someone you know needs support, I'm here to help.
Carla
Resources:
Hotlines and online help
National Suicide Prevention Lifeline:1-800-273-TALK
Veterans Crisis Line:;1-800-273-8255;(PRESS “1”)
Crisis Text Line: Text “HELLO” to 741741
Disaster Distress Helpline:1-800-985-5990MentalHealth.gov
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