Episode 72: Navigating Financial Curveballs: Emergency Planning and Insurance

In episode 72 of Accessible Finance, we delve into the critical topic of financial planning for life's unexpected events by sharing a very personal experience of our own as Rachael is currently undergoing treatment for breast cancer, emphasizing the importance of being prepared for sudden health diagnoses, unexpected expenses, or any event affecting your financial future. Our discussion covers emergency funds, disability and life insurance, estate planning, and tax/investment strategies to ensure you're ready for any financial curveball. Tune in for practical advice and essential steps to safeguard your financial well-being.

Read the Transcript

Podcast Episode: Financial Planning for Life’s Curveballs

Introduction (0:00 - 3:00)

Rachael:
"Hey everyone, before we jump into today’s episode, I want to take a moment to share something personal. You may notice I look a little different—and if you haven’t yet, you may soon enough. I'm currently undergoing treatment for breast cancer. We debated whether to bring this up, but the truth is, life doesn’t always go according to plan. Unexpected challenges are part of the journey, whether we acknowledge them or not.  This experience has only strengthened our passion for practicing what we preach, and helping you prepare for life’s uncertainties. So today, we’re talking about financial planning for life’s curveballs—whether it’s a sudden health diagnosis, an unexpected expense, or any event that shakes up your financial future. Because while we can’t always control what happens, we can control how prepared we are. 

Eric: With that being said, Let’s dive in.”

Segment 1: The Reality of Life’s Curveballs (3:00 - 8:00)

Rachael:
"Eric, I think most people assume they’ll just ‘figure it out’ when life throws them a curveball, or even believe that things simply “don’t happen to them”. But the truth is, financial surprises happen to almost everyone at some point."

Eric:
"That’s exactly right, Rachael. We see it all the time—people get so focused on saving for retirement that they don’t prepare for the unexpected bumps along the way. And those bumps can be big: 

✅ Health issues—like a cancer diagnosis or a sudden disability.
✅ Sudden loss of income—maybe a business downturn or an unexpected job loss.
✅ Family emergencies—caring for aging parents or unexpected legal expenses."

Rachael:
And unfortunately, the psychological part plays a huge role. Fear, denial, avoidance—these are all completely normal reactions, but they can stop people from taking action before a crisis hits."

Eric:
"Exactly. Iit’s not just about the financial impact. When something like this happens, people are already stressed. The last thing they need is a money crisis on top of it. We want to preemptively control all the things we are able to"

Segment 2: Key Areas to Prepare for the Unexpected (8:00 - 16:00)

Rachael:
"Alright, so let’s talk about what people can do to get ahead of these curveballs. Where should they start?"

Eric:
"Step one is always having an emergency fund. 

✅ How much? 

✅Protecting in a down market?

✅ Where should it stay?

Rachael:
"And if you need to use it, how do you replenish it?"

Eric:
"Great question. If possible, direct a portion of future income back into it. If you're retired, it may mean adjusting your withdrawals slightly until it's built back up."

Rachael:
"What about insurance? I feel like people either over-insure or totally ignore it."

Eric:
"Yep. The key policies to review are: 

✅ Health insurance—especially making sure Medicare coverage is optimized. 

✅ Long-term care insurance—not for everyone, but worth exploring. 

✅ Disability and life insurance—even retirees may need some coverage."

Rachael:
"And estate planning? I know so many people put this off."

Eric:
"Absolutely. Wills, powers of attorney, and healthcare directives should all be up to date. The last thing your loved ones need during a crisis is legal confusion."

Segment 3: Tax & Investment Strategies for the Unexpected (16:00 - 20:00)

Rachael:
"Okay, so we’ve covered emergency funds, insurance, and estate planning. But what about investment strategies? How can people set themselves up to weather financial storms?"

Eric:
"Flexibility is key. Some strategies include:
✅ Roth Conversions—tax-free withdrawals can be a game changer in an emergency.
✅ Keeping a liquid investment bucket—having cash or bonds readily available means you don’t have to sell stocks in a downturn.
✅ Reverse mortgages or HELOCs—not a first option, but can be useful for retirees in a real pinch."

Rachael:
"So, it’s all about having options. If you wait until a crisis hits, your choices shrink fast."

Eric:
"Exactly. Planning ahead gives you control—even when life throws surprises your way."

Engagement Segment: “What’s Your Plan?” (20:00 - 22:00)

Rachael:
"Alright, listeners, time for a gut check:
✅ Do you have an emergency fund?
✅ Have you reviewed your insurance coverage recently?
✅ Is your estate plan up to date?
✅ Do you have a financial team—planner, CPA, attorney—you trust?"

Eric:
"If any of those made you pause, it’s time to take action. The good news? Small steps now can prevent major stress later."

Conclusion & Call to Action (22:00 - 23:00)

Rachael:
"The truth is, none of us know what life has in store. But taking steps today can mean the difference between financial security and financial stress when the unexpected happens."

Eric:
"If you want to talk through your financial safety net and make sure you're protected, visit us at Equilibriumfp.com and schedule a free consultation."

Rachael:
"And if you found this episode helpful, share it with a friend who could use a little financial clarity. Thanks for tuning in to Accessible Finance! See you next time!"