This could be a big difference, out-of- pocket, in the event of a local catastrophe such as a tornado.

Maybe just something catastrophic?

My view is that the risk of falling asset values is a realistic risk, but not a catastrophic risk. 

Sometimes people need a catastrophic event in their life to get their wheels turning. $300,000 deployed in a smart way can make you wealthier than any J-O-B in the long run.

Then again, I also lived in Orange County during the 2006-2008 downfall and saw the epic rise and catastrophic fall of New Century, Ameriquest, etc.

I've never gotten rid of a vehicle unless I totalled it on a deer, or some other catastrophic failure.

I define wealthy as such: with a reasonable standard of living (I'm not talking about living in a tent), meaning a decent house, utilities, enough to eat, catastrophic insurance coverage (home, medical, car), something to drive, and a little "sauce" for an occasional vacation or night on the town - if you woke up tomorrow and decided "Hey, I don't think I'm going to work any more" - could you continue that standard of living, indefinitely, barring some catastrophic event that cannot be reasonably guarded against (a meteor hitting the earth, for example)? 

And then one day I woke up and realized there's opportunities to be explored, now, and I was expending a lot of effort on things that I can't stop anyway.These days, I spend virtually zero time or energy talking, debating, or planning for catastrophe.

For the person mentioning healthcare a change was made I believe ( cannot say for sure) that if you get catastrophic care coverage then you are compliant now.

The headline reactionary mentality strikes again....... immediate outrage.......Relax.... there are LOTS of states, cities and counties that don't allow evictions or shutting off utilities etc in winter..... the sheriff wont kick them out.....this is NOTHING new.Its the fact that's its Seattle that has people all riled up..... like SF it's a common target as some liberal catastrophe that should be used as an example of all that is wrong in our country......Relax...... its nothing new.....