Flood Insurance | Wisdom, Wealth, and Wellness

Jonathan Satovsky
CFP®, ChFC®, CIMA®, CPWA®, CDFA®, DACFP

Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management with a quick observation on “Seeking Wisdom, Wealth, and Wellness” on the concept of flood insurance. Hurricane insurance.

Why does the demand for hurricane and flood insurance rise after a hurricane and flood? Of course, people want something based on recency bias. But of course, the cost to get flood insurance and hurricane insurance goes up right after the flood. So it’s no different than portfolio allocation decisions. When people want portfolio insurance, protection from downside, generally, it’s super expensive.

So consider the timing, and where the weight of populous thinking is, to understand the cost-benefit of what you’re buying. Because at the end of the day, if you’re an investor for a lifetime, you want to make sure that you’re creating good value and good asymmetrical risk-return opportunities. Even if they don’t pan out, you still want to continue to operationalize the concept of good risk-returned decision-making.

Think about that on your path to Wisdom, Wealth, and Wellness.

Have a great day.

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Video Recorded September 2, 2022
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Disclosures

This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.

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