Living through a natural disaster may be frightening, but struggling with the resulting financial hurdles can be equally daunting or, at the least, frustrating. Our firm, based in Augusta, GA, witnessed the destruction of Hurricane Helene on September 27th. We have heard many stories from coworkers, family members, and friends in the aftermath. While roads have been reopened and electricity and clean drinking water restored, some people and businesses still do not have internet access. And many are now battling with insurance companies and the unavailability of over-booked contractors, landscapers, and debris-removal companies.
Solid planning is supposed to help us prepare for the worst. However, sometimes even the best planning fails to account for an improbable event. Our area certainly took an unexpected hit since we are usually a place our neighbors on the coast evacuate to and not the ones enduring hurricane force winds ourselves. Still, these disasters remind us that it’s prudent to re-evaluate our preparedness: physical, financial, and insurance-wise.
- Consider physical preparations such as stocking up on gasoline, propane, batteries, water, and shelf-stable food when weather warnings are issued. For more in-depth planning, invest in a generator and factor disaster risk in landscaping decisions.
- Speak with us, your financial advisor, for cash flow needs that consider capital gains and other tax factors. You may be able to take a hardship withdrawal or a special disaster distribution from retirement accounts without penalty*. We’ll help you review your estate planning: balancing your spending and savings goals with your health, home, and life insurance needs.
- Speak with your CPA on tax filing extensions and declaring a casualty loss on this year’s taxes or last year’s**. Because our area is a presidentially declared disaster, you have the option to file an amended 2023 return to get a refund sooner than waiting until next year. Some counties, like Augusta-Richmond County, have hurricane property damage report forms to file to perhaps lower your property tax bill for 2025. Small businesses and non-profits also have other avenues to help rebuild.
Natural disasters do occur, sometimes unexpectedly. Don’t be immobilized by the stress of cleaning up or mountains of paperwork. There are steps to take now. Give us a call so we can help you plan for a brighter tomorrow.
*Each plan or IRA has specific rules and guidance for their participants to follow. The IRS may provide additional disaster relief in the future.