Like me, I’m sure your heart goes out to all those affected by the wildfires in Los Angeles. Perhaps you or someone you know has been directly affected. If that is the case, please reply to let me know how you’re doing.
Wildfires can be so devastating — taking an immense toll on families, communities, and the broader economy. While natural disasters like these can challenge us in many ways, they also remind us of the incredible resilience of communities and the strength we find in coming together.
While recovery takes time, we have witnessed how both people and economies can rebuild and emerge stronger. We certainly hope for this on behalf of all our friends in the L.A. area!
The economic impacts of the fires are also significant, and understanding them can help us prepare for what’s ahead:
- Economic losses: Estimated to be between $52 billion and $57 billion, these wildfires represent a massive financial impact that may ripple through the broader U.S. economy.1
- Insurance industry: Insured losses are projected to approach $10 billion, placing pressure on insurance providers like AIG and Chubb, particularly those serving high-net-worth clients.1
- Stock market: Utility and insurance stocks have already reacted to the fires, leading to potential volatility in these sectors.2
While these numbers reflect the financial toll, they don’t tell the full story of the lives and communities impacted. For those affected, there are resources and strategies to help ease the burden. We are encouraging everyone we know in the area to:
- Prioritize safety: Follow evacuation orders immediately if issued for your area.
- Reach out for immediate assistance: Connect with services like the Red Cross or local disaster relief organizations.3
- Apply for federal aid: Apply for recovery assistance through the Federal Emergency Management Agency (FEMA) at DisasterAssistance.gov.
- Explore tax relief options: Such as property tax relief and other benefits available to California residents.4
- Document damages for insurance claims to ensure you’re receiving the support you’re entitled to.
If you have any questions about how these events might affect you, your loved ones, your financial plan or even your future, I’m here to help. Feel free to reach out anytime.
In times like these, it’s clear how important it is to focus on what matters most: our health, our loved ones, and the communities that keep us strong.
Wishing you safety and peace.
P.S. I know how overwhelming times like these can feel. Please know that I’m here to support you however I can—whether it’s with financial guidance, a listening ear, or help navigating available resources. You’re not alone in this.
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Sources:
1. Investor’s Business Daily, 2025 [URL: https://www.investors.com/news/top-california-property-insurer-earns-double-upgrade-from-goldman/]
2. Investor’s Business Daily, 2025 [URL: https://www.investors.com/news/california-palisades-fire-update-stock-market-impact/]
3. Red Cross, 2025 [URL: https://www.redcross.org/about-us/news-and-events/press-release/2025/red-cross-helping-in-southern-california-as-wildfires-force-thousands-from-their-homes.html]
4. California BOE, 2025 [URL: https://www.boe.ca.gov/proptaxes/disaster-relief.htm]
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.
Advisory services offered through NewEdge Advisors, LLC, a registered investment advisor.
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