Nancy Dienes, CEO of Arrivity Financial Planning, has built a career around planning for the future. But lately she’s only been able to think about one day at a time. That is, ever since an enormous tree fell through her roof during Seattle’s mid-November ‘bomb cyclone.’

I talked to Nancy three weeks after the storm. She told me what she said to the reporters who had gathered in her yard to televise the aftermath. In the background, massive tree chunks were being chain sawed and removed from her destroyed bedroom:

“I was thankful we were alive. We weren’t home when the tree slammed into our house. Later, another tree fell in our yard at the exact spot where we’d been standing a few hours earlier. I feel like the luckiest person in the world.”

Now Nancy and her partner Tracy are in survival mode, trying to manage the uncertainty of each new day.

“We focus on the things we can control. On our refrigerator is a piece of paper titled Daily Survival Framework. It’s a list of the basic things we can do to get through the day, like get up, go for a walk, and eat the same breakfast every morning. It even reminds us to socialize. Any other plans we had before the tree fell have been completely derailed.”

In addition to their daily schedule, Nancy and Tracy have created what they call the Next Three list. Just three things they need to attend to. Everything else goes on a spreadsheet for later consideration.

Nancy is, after all, a planner – she’s been a CFP® professional for 12 years and purchased the firm in 2013. She talks to clients about preparing for the unexpected, but now she’s having a hard time anticipating what comes next. The couple has already spent $25,000 for tree removal (two more trees were also severely damaged), and they’ll have to rent a place to live in for months and possibly 1-2 years. “Suddenly the advice we’ve been giving clients has become very real,” Nancy told me.

A crash course in preparedness

I asked Nancy how this experience has changed the way she thinks about advising clients. As a firm, Arrivity has always considered both the personal and financial aspects of money. They try to help clients see money as a tool for accomplishing goals and securing the future. Nancy is already thinking about issues she’ll emphasize more so that clients can be prepared for the unpreparable.

Emergency funds– “When we work on budgeting with our clients, we always talk about having an emergency reserve.” Now Nancy has a visceral picture of what a real emergency can cost. “We sometimes see disagreements within a household about what constitutes an emergency.” Is a vacation an emergency? Replacing the car? Nancy isn’t sure when to expect money from an insurance claim on the house. Meanwhile, extra costs have to come from savings.

Homeowners insurance – “I had a whiteboard with a list of things I needed to get done. One of those tasks was to revisit the replacement value of our house on our homeowners policy. That note has been waiting to be checked off for a year.” Insurance is rarely at the top of anyone’s to-do list, but it can be an important component of financial planning. She also learned it’s the policyholder’s responsibility to mitigate further damage, so knowing how to turn off the power, water, and gas to your home is critical.

Family conversations – Understanding the needs of your family can help make sure you’re in the right place to address those needs if something disrupts your flow. Nothing will ever prepare you for destruction on the scale that Nancy and Tracy experienced, but dealing with the aftermath starts with a great deal of empathy toward yourself and your family members. “Right now it’s like we’re in a 3-legged race,” said Nancy. “We need to do this together, even if we don’t always know what direction we’re going or how fast we can move together.”

Be prepared to seek help – Even if you feel adequately prepared for whatever mother nature or fate chooses to throw at you, remember that community is all about mutual support. Nancy got help from neighbors with chain saws and people who could offer a place to stay. Government entities are making assistance available at the city, state, and federal level. I expect that Nancy will soon be an expert in asking for and receiving help from others.

One thing I think Nancy would tell you is that you can’t really prepare for this level of disruption – having your house destroyed by a blast of wind. Financial planning is a time to look years and decades into the future, even into the next generation. It also helps to make sure you have resources to draw on in times when the only thing you can think about is getting through the day. 

Things you can do now to prepare for the unexpected:

• Is your emergency fund a real emergency fund? If you’re tempted to tap it for other things, maybe you need a separate account where you can save for unexpected expenses.
• Make sure you know where all your important documents – like insurance policies – are in case you need to leave your home suddenly. 
• Consider talking to your neighbors about disaster preparedness. It might be good to know who has the power tools and who’s got a generator. 
• Review your insurance policies with your insurance professionals to be sure you understand what is covered and if you should consider increasing coverage.

Our office will be closed from Wednesday, December 25th 2024 to Wednesday, January 1st 2025. We hope you and your family have a safe and festive holiday season!

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Please contact us at 206.217.2583 or info@arrivity.com if we can assist you or someone you know with financial planning.

The foregoing content reflects the opinions of Liz Behlke and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.