Today we keep with our usual theme of being an unusual financial radio show. Our interesting guest, Paul Carney joined us to explain his experiences dealing with dramatic traumas and crippling natural disasters. Of course our first topic we were curious about was the recent catastrophe in Japan. The earthquake/tsunami hit the people of Japan and people across the world were eager to help. Mr. Carney reminded us, however, that it is very important to consider the cultural differences in other societies when attempting to offer assistance. Many times helpers rush in without fully knowing or understanding the circumstances. Paul explained that is important to understand this to avoid further stress or other traumatizing experiences to the people that are in need of help. Cultural differences can range from Macro-Cultures (nations, countries, etc.) to Mico-Cultures (states, counties, towns, neighborhoods). It is vital to learn, understand and respect the culture of the people in need.

Mr. Carney explains how spectators and people who were not physically impacted by a disaster can be vicariously traumatized. People many times want to help in a situation but see many disturbing and damaging sites by doing so. Also, the media often spreads fear and traumatizing visuals to the public. There is a “ripple effect” when it comes to a tragedy. There is a point of impact which hits directly and then the effects slowly spreads to other areas, people and situations.

Paul Carney explained that people interested in helping or donating to people suffering from disasters can visit contact their local Red Cross facility or by looking up information on the FEMA website.

Delegate Justin Ready joined the show over the phone to give us an update on an important issue that we were discussing on the show with him last week. Delegate Ready explained a possible bill to give instate tuition breaks to illegal immigrants. Many people, including Delegate Ready, believe this is a bad idea and unfair to other college students, as well as those who have immigrated legally. It will also be very expensive to fund and could even increase tuition to both in-state and out-of state students . He explained that there is a petition currently circulating to oppose this bill. Go to www.mdpetitions.com to fight this decision, there is a target number of 200,000 signatures to make an impact.

It is important to take precautions in case a disaster impacts your family. Our advice, as always, is how you can be prepared financially.

1. Develop an EMERGENCY FUND. Set aside liquid, ready funds in an easily accessible account like a savings account. This can be helpful to quickly repair damages caused to your home from a natural disaster, or any unexpected financial emergency.
2. Keep cash on hand. It is important to have cash available in case of a disaster that may cause banks to be closed or a power outage that would prevent you from accessing accounts.
3. Maintain a list of all your accounts with the account number and company contact information.
4. Flood-proof important documents. Keep in a safe area in bags or another water-proof container.
5. Use cell phone and email as a back-up record keeper. Keep important phone numbers saved in your cell phone and copy vital information to your personal email for easy access away from home.
6. Be sure to have a fire proof filing system
7. Don’t give all account information/cash/credit cards to just one family member in the event of an emergency. Disperse funds and give cash to all members of your family incase you are separated for any reason.
8. Have an emergency credit card available with no balance and ready for immediate use.
9. Take updated “inventory” pictures of your home, property, valuables, etc. on a digital camera for records. 
10. Have an insurance policy review annually.

March 16, 2011

Segment I Guest: Karen Sorrell, Owner of Simply Stone

Segment II Topic: Japan Disaster: The Government’s Role and How We Can Help The Right Way / Role of Government

Local business owner, Karen Sorrell joined us today to discuss the ups and downs of owning a business. She and her husband own Simply Stone, Carroll County’s largest natural stone fabricator and a full service kitchen and bath remodeler. Karen and her husband have owned Simply Stone for the past 6 years but the business was in existence for over 20 years and originally based in Baltimore County. When Karen and her family took over, they transitioned “across the reservoir” to make their business’ home base in Carroll County. Simply Stone is now in Finksburg and has been very successful, despite the economic times we have faced.

Karen gave us some background about how she and her husband became owners of a countertop and natural stone fabricating company. Her husband was a very highly trained engineer for many years, but in 2002 & 2004, both of the companies he had been working for shut down. At the time, Karen was a stay-at-home mom to their 3 young daughters, but had previously been an avid in the Non-Profit community. With both of their training, skills and experience, they decided to open their own business.

We asked Karen how becoming a business owner has affected her and her family’s lives. She explained that the flexibility of being a business owner can be very helpful with her family life, but at times, being the business owner means you are the ONLY one that can do certain things and there are a lot of crucial duties on your shoulders alone that impact the company.

Being financial planners, of course we asked Karen how her business has been affected by the challenging economy. Luckily, she had a positive answer! Because they are a small facility with a very diverse customer base, they did not take any hard hits. In fact, Karen explained that they have actually grown in business over the past several months.  Also, Simply Stone is currently hiring. They need a the position of Kitchen Designer and a Shop position filled. This is great news considering all of the lost jobs and the climbing unemployment rate. Within the next 6 months, they will be offering more positions, as well. To contact Simply Stone, call 410-526-ROCK(7625) or visit www.simplystone.biz for more information about their services.

The Disaster in Japan

After the 8.9 magnitude earthquake, followed by the tsunami, the people of Japan are in dire need of assistance. This disaster has affected millions of people and will continue to do so for several years as those affected rebuild their lives. This is an example of the reason why you should “protect against the uncontrollable”. Obviously, a natural disaster was not something that you can prevent, but you can protect yourself financially by making sure that you are insured and protected. Many people think they don’t need various types of insurance, but you can never be overprotected. If something happens to you, how will your family be affected? Where will you gain the means to rebuild your home if a disaster occurs? These are all questions that many people do not think about until it is too late. Protect yourself and your family in any way possible.

A human tragedy, such as the events in Japan, cannot compare to the economy crisis or falling stock market. However, instances like those do give us hope in that we CAN recover. When things seem to fall apart, there are always ways to reach out, help and recover. The key is, don’t react with EMOTION, react with a PLAN. That is more difficult when you are one of the victims, but its important to take steps down the road to recovery and not make rash, in the moment choices that may not make a positive impact. Secondly, if you are one of the people that wants to reach out and help the people in Japan, or in any disaster, be sure to help smartly. At the moment, it is better to give cash to help, not materials or supplies to help those in Japan. There is very limited accessibility and little transportation to get supplies to different areas. The main focus is getting people out and to safety. Also, sadly, there are scams out there claiming to be relief organizations. Do not give money to anyone unless you do research and make sure it is legit. Avoid any and all solicitors over the phone. There is never a guarantee of who is on the other line of that call. Be aware and take action to be sure that your funds are going to the right place. Also, if you donate to a 501-3C organization, your support is tax deductable, so keep good records.

Nine Reasons Why We Limits in the Role of Government

1. It needs to conserve its resources for disasters like Japan (Spending is out of control. When ahead, save money. Have funds available for emergencies)
2. It’s a monopoly
3. Power corrupts – and insulates (why we support term limits)
4. The bigger the organization is, the more inefficient and beaucratic it is
5. The fallacy of elites
6. Who polices the police?
7.  As government grows, your liberty shrinks
8. Government spends YOUR money (there is nothing free from the government), so the more government, the more YOU pay, one way or another: taxes, fees, inflation
9. Government seeks to grow its own power by forming alliances (the infamous military industrial complex, teachers unions, big corporations)

Six Things Government Should Do (Whoever lost the coin toss):

1. Address disasters efficiently by consolidating and quickly mobilizing resources
2. Government should be involved in what the Constitution requires: post office, military
3. It should do what private industry cannot: police, building highways
4. In certain limited situations, government can consolidate ideas and focus energies, such as NASA
5. It should protect us from each other, taking into account human nature, by limited regulations, law and mediation
6. In selective situations, it should lead by example.