KEVIN'S COMMENTS

Managing Director, KSL financial Ltd

We are very pleased to advise that our office on Level 8, BDO House, 148 Victoria Street reopened on Monday.

Whilst there are some minor sorting of paperwork to be undertaken, all systems and services are back to normal, and like everyone in Canterbury it is almost business as usual.

CANTERBURY EARTHQUAKE

The magnitude of the event is now starting to settle in as we walk and drive around Christchurch looking at the changing landscape and count our blessings that no-one was killed or seriously injured.    

If we look at the positives from the event;

• no-one died
• there was very little reported injury
• a very comprehensive rebuilding programme is underway
• a firm leadership from both John Key and Bob Parker directing the reinstatement of our lives to as normal as possible position as quickly and as practicable

The major positive is that it is a "natural" disaster. As such all of the resources of Government, Mayoralty Funds, etc. will provide much needed assistance to the displaced.

Although, it has highlighted the fact that most Cantabrians live week to week, their resources are stretched and the need for financial support has been offered immediately by Banks and Government Agencies.  

Notwithstanding, there will be casualties in the business community, particularly in the small business area, as buildings are being immediately demolished, and livelihoods along with the demolition.  

THE REAL MESSAGE

Ponder these thoughts for a moment.

What was the last thing that you were thinking of after the initial earthquake?  Was it how much extra time you should have spent in the office?  Was it how much time you spent involved in sport and recreation or was it how little time you spent with your wife/husband/partner and family?   

What were the most important priorities for you during and after the earthquake?  Was it, I must get to the office and see what the damage is, or was it consoling and supporting your husband, wife or partner and your children? 

If your answer above was your family, then imagine for a moment if you will, that it was not an earthquake but a heart attack, a cancer or a stroke.  What would the plight for you and your family be if this event occurred?

Again, imagine if you would that you or your spouse had died.  What would have been the financial impact on you and your family? 

I know that these are disturbing questions but at times like this it is important that we review our whole risk management approach to life and our financial aspects. 

I recommend for your family's sake, that you review your whole financial situation and start acting in a more informed and pragmatic way with regards to risk management.

You have now seen first hand the cost of a natural disaster.  There is equally nothing more natural than a cancer, stroke, heart attack or death and you should now all start adopting the 10/20/70 rule of saving. 

• 10% of what you earn should be committed to long-term savings and a risk management plan.  This should purchase all of the necessary life insurance, income protection and trauma insurance cover.  
   
• 20% should go into debt repayment and short-term savings goals. 
   
• 70% of what you earn you should live on. 

I picked up this financial strategy from my first Million Dollar Round Table meeting in San Francisco in 1985. It has stood the test of time for those who have committed to the regime. 

Everybody, and I mean everybody, should have adequate financial risk planning and a cash reserve that cannot be touched so that you have at least a two month "buffer" in a fixed term deposit account for such a happening as we have just experienced. 

REFERRALS

Now that we have bedded down our second opinion audit service we are now seeking new clients and would welcome assistance from you our existing clients for introductions to your friends, family and business associates.

Other than your Lawyer and Accountant who are the two most important non relatives you would want me to contact to advise if you or your spouse died today? 

click here to email me contact details

SUMMARY

This event has brought home to us the fragile nature and fabric of our society and is a timely reminder that nature can call at any time so we should expect to expect the unexpected.

It is it's aftermath that has prompted me to reaffirm my commitment to clients in the auditing of your personal insurances.

I will endeavour to make contact with each and every one of you to offer you the opportunity to meet and review your risk management position.  In the meantime, please do not hesitate to contact me directly on 03 365 4460 or 021 240 4540.

Kind regards,

Kevin Seque

Managing Director

KSL financial Limited