Three kinds of disasters can shut down our ability to bank and invest using computers and mobile devices. Consider last week’s global tech outage as a warning to start preparing for each of them.
The outage was brutal for sectors like airlines and hospitals, but mainly an inconvenience for people trying to access their investment or bank accounts. Here are some potentially worse situations, with some thoughts on how to get ready.
The first risk is a mass outage or cyberattack that makes your bank and investment accounts inaccessible by internet-connected computer or phone. Having accounts at more than one bank can help mitigate the risk in cases where just one institution is targeted. Otherwise, cash can help you buy what you need in the near term. Decide how much cash you want to have on hand, what denominations of bills and coins you need and stash them somewhere safe at home. A lock-box or compact safe is one option.
A second risk is an electricity outage. Phones may still work, but only if you can keep them charged. To do that, get yourself a rechargeable power bank that can keep electronic devices running for at least a day or two. Again, having cash on hand is key.
A third risk is extreme weather. In a flood or violent storm, both your electronic devices and paper documents could be damaged or destroyed. A password manager allows you to securely store your online passwords and retrieve them as needed, wherever you might be. If you store documents in the cloud to keep them organized and accessible, here are some thoughts on ensuring they’re secure.
All of the measures discussed here apply to outages that last a few days or maybe a week at most. I got some insight into the minds of people preparing for worse situations in a recent media pitch for “prepper bars,” which means thin gold bars with sections that can be snapped off to use as currency in a postdisaster world.
Preparing for a world where gold becomes currency requires an expectation of complete societal breakdown rather than temporary digital disruption. I’m not there.
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Rob’s personal finance reading list
Millennials talk about why they don’t seem themselves having children. Basically, they feel they can’t afford it. OECD numbers show Canada already has a below-average fertility rate.
A slice of life in shrinkflation nation
We all know of one or two grocery store items that are smaller than they used to be, yet they cost the same or more. Now for a data-based study of the shrinkflation phenomenon – specific products and categories that have been most affected.
A money-saving app for kids and parents
A pros-and-cons review of Mydoh, an app that families can use to teach children about money. Mydoh works in conjunction with a reloadable Visa debit card. Now for a look at the best children’s savings accounts.
The average age Europeans leave home
A country-by-country look at the age adults in Europe leave their parents’ home. I have so far been unable to find comparable Canadian numbers, but this chart offers some perspective for both parents and their Gen Z or millennial children. Being at home until your early 30s is a thing in some places.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Reader comment: “I was so pleased to see the article headlined “Thoughts for people who love managing their money, but worry about advancing age” because everyone should be aware of this risk. My father was a brilliant scientist who relished managing his own money, but after retirement, Alzheimer’s disease undermined his skills long before the problem became apparent to the family. Sorting out the hash he’d made of his and mom’s tax returns, and tracking down the investments here, there and everywhere was an unexpected mammoth project. Like him, I took pride in managing my own family’s investments and taxes for decades, but now in retirement myself, with some prompting from my spouse I’ve applied the lesson and engaged both an investment manager and an accountant. This isn’t cheap, but it’s prudent and I feel less stressed at tax time. This is not the right time of life to be focusing on saving money by DIY.”
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A Reddit thread where people talk about the retirement calculators they find most useful.
In the social sphere
Social Media: “If you are buying your first home and not using a FHSA – even if only for a moment in time as you close on your new purchase – you’re doing it wrong.”
Watch: David Chilton, a.k.a. The Wealthy Barber, offers a simple explainer on registered retirement savings plans.
Money-Free Zone: The song Good Stuff by Jane Dire delivers just what the title promises. A strummed guitar sound, big hooks and handclaps – what more do you want?
More PF from The Globe
– Creating a robust financial plan for life after loss
– Can Clive and Clara, 65, meet their retirement goals after he was laid off?
– How multigenerational families are splitting mortgage costs
– Canada’s housing crisis is fuelling a population crisis
