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Financial advisors reaching out to clients affected by Los Angeles wildfires

On Behalf of | Feb 3, 2025 | Financial News

Financial advisors with clients affected by the wildfires in the Los Angeles area are doing what they can to help them deal with the economic consequences during this difficult time, according to FA Mag.

With over 12,000 homes destroyed by the catastrophic fires, many residents are facing rebuilding costs beyond what they will receive from insurance claims.  Advisors are trying to provide them with financial guidance their time of need, as Mitchell Kraus, a co-founder of Capital Intelligence Associates in Santa Monica, Calif., told FA Mag.

“I have two clients who have confirmed they lost their homes and three others who probably did according to maps of the affected areas,” said Kraus. I’ve reached out to all of them and offered assistance and said ‘I’m thinking about you. You and your family’s health is the most important thing, but I do have some expertise. Let me know if I can be of assistance,’”.

“My job is to help my clients make rational decisions during irrational times. I’ve been listening, strategizing, helping them take care of short-term term needs. I’m also helping them sort through their insurance deductibles and tax ramifications, so when things settle down, we can model some planning,” he said.

Kraus added that he has been attending various online city, county and state programs to get a better idea of what assistance may be available to his clients once they are ready to move forward.

For example, the Los Angeles County Economic Development Corporation provided a list of resources available for residents and businesses impacted by the wildfires.

Krause said arranging adequate living conditions is the main priority for many people.  “Even for clients who haven’t lost their houses, some of their blocks are so destroyed and possibly polluted by toxic waste and complete lack of infrastructure that even if their house is close to being livable, they might not be able to move back in for weeks, months or even years. Gas and city services might not be available for months,” he said.

Some advisors note that taxpayers may be able to deduct uninsured damage and losses to offset capital gains resulting from the appreciation of their properties.

Gregory Kushner, founder and chairman of Lido Advisors in Los Angeles, said his firm is still trying to ascertain how many of their clients have been affected.

“So far, we have heard back from some clients who in fact lost their house and at least one client whose house survived, but many houses on her street did not survive. We don’t really have a total number yet as the situation is still too fresh,” Kushner said.

He added that the firm hosted an event featuring the president of the National Association of Public Insurance Adjusters in an effort to give clients the information they need when negotiating their insurance claims.

Daniel Melkonyan, a mortgage broker with Found West Realty in Los Angeles, noted that people who lost their homes in the fires have the option of asking their mortgage servicer to defer their mortgage payments for up to one year.

“It’s not common knowledge, but people should definitely contact their mortgage servicer and get their mortgage deferred until they can figure what they want to do,” Melkonyan said.

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