After the tsunami of 2004, Sri Lanka and Indonesia had a
Herculean task of reconstruction and managing aid relief.
It was a lesson in Public Sector Management, to say the least.
More than 2,500 schools had to be rebuilt or repaired, 200,00
homes had to be constructed for 1.7 million who were homeless,
and 260,000 jobs were lost. Of course billions of dollars
of aid was flown in, but the bureaucracy trap was overwhelming.
It is comforting to know that world agencies will help.
But it is better to know you have positioned yourself and
your family, to be independent of governmental aid in the
The difference between state sector reconstruction and individual
estate preservation and conservation, is that one is wide
scale and the other is individualistic.
In this column weve created an estate based on astute
savings and investment strategies, or we have set a course
to that end. That was Plan A! Now we devise a blue print for
All good plans start with a dream of independence and perpetuity,
and a blue print. From the blueprint we generate a plan and
establish certain policy positions. We seek approval for these
projects from the stakeholders, and the experts in the field.
We pay attention to build capacity to fulfil the aims and
objectives we set ourselves. We educate ourselves, we source
good jobs with excellent benefits packages, and we manage
the plan by constant review.
Plan B is ensuring events that destroy value in what youve
already built for self and family, cannot be washed away by
the waves and vicissitudes of time.
The average person acquires a primary residence through
the vehicle of a mortgage loan. The loan is normally guaranteed
by collateral. More often than not the collateral involves
insurance. There is likely to be insurance on both on the
life of the borrower and on the property itself.
Do we have a social responsibility to mitigate risk? Yes
we do! The danger is in being short sighted.
An optimum choice for insurance collateral is cash value
life insurance in a universal life policy. The fund value
can be withdrawn periodically, say every ten years to perform
routine maintenance and /or upgrade.
Property protection should be upgraded to include, floods,
hurricanes, earthquake and natural disasters. Very often because
of limited financial resources it is logical to select the
However, revision is necessary once youve established
some foothold in your economic affairs. Very often the value
of the home has increased, and the insurance coverage you
purchased ten years ago will not indemnify your loss.
Hence the techniques of conservation and preservation are
tied in with re-evaluations and revaluations.
How often do you see retirees with house in need of repair,
in old clothes, and a wired-up old car? Without
the energy levels to rebuild should a storm strike, can they
await the bureaucracy? What is the possibility that a Plan
B is vital for you?