How to Protect Your Money in Case of a Major Blackout

Major blackouts, such as the New York City blackout of 2003, can pose a special threat to banks and other financial institutions. Here are some tips to help you protect your money.

Difficulty: Easy

Instructions

Things You'll Need:

• Cash

Personal Finances

1. Keep some extra cash on hand in case banks (and ATM machines) are disrupted.

2. Pay your bills early so that they won't be affected by unexpected processing delays.

3. Keep copies of all receipts and financial records for at least 6 months.

4. The FDIC has guaranteed the security of people's money in all major banking institutions. If you feel unsure as to the status of your bank's preparedness, be sure to check with them.

5. If you do not feel secure about having your money in your current bank, you can always transfer your funds to a different bank.

6. Order a copy of your credit report regularly so that you have a record of your credit standing in case a blackout does damage financial records.

7. Make backups of any financial information that you keep on your computer.

Stocks, Bonds and Your Investment Portfolio

8. It is always a good idea to keep your portfolio diversified, with a mixture of very reliable securities (bonds) and more speculative stocks. An overall market downturn is unlikely, but short term instability might occur.

9. It's probably not a good idea to make radical changes in your investment strategy because you're anticipating some kind of disaster. Investing in solid companies for years brings the most stable return on your investment.

10. Beware of investing in companies who might expect to experience a short term increase in stock prices because of blackout hysteria (such as solar power or water filtration companies). Their stocks could fall just as quickly once the panic wears off.

Tips & Warnings

• The FDIC recommends that you withdraw the amount of cash you would normally need for a long holiday weekend.
• Market instability could extend well past the actual blackout. Avoid the temptation to 'play' the market, especially during a period of volatility.

[nethopperz]

on 4/9/2008 Nice article! These are all excellent tips.