Let's Get It Together!

Having a background in banking and auditing I have a tendency to get paperwork more in order than it needs to really be for most folk.  But having said that I still think that everyone should have a Financial Binder/File/Plan.  I hear/read stories about these poor people that lose a spouse and suddenly they have no idea where the money is, what insurance they have, don't know if they have life insurance, a 401k means nothing and SEP is September. 

I just finished updating our binder and thought I would share what you need to know and what needs to be handy.  Situations will vary but if you have questions ask away.

Need:
1 1/2" binder
Tab Dividers
Tab Notes/Flags
3 hole punch

Step 1:  Decide how many sections you need.  You should have one for each of the following:
                         A.  Primary Residence
                         B.  Rental Property (one for each)
                         C.  Financial (Bank/Stock/Mutual) Statements (one for each institution or one for all)
                         D.  Retirement Statements
                         E.  Work Retirement/Stock/Benefit Statements
                         F.  Life Insurance (Work and/or Individual)
                        G.  Auto Insurance
                        H.  Health Insurance
                         I.  Credit Card

Label each Tab for each section.  I used a P-Touch so they were nice and neat.

Step 2:  I have accordion files for each of the last three years with an additional four years of tax return documentation.  The actual tax returns are on my computer and backed up on a separate drive.
Go through and pull out the following documentation for each section:
                        A.  County Tax Assessment Statement (highlight dates and how to challenge)
                              County Tax Bill (highlight parcel#, due date and amount)
                              Insurance: Earthquake, Flood, Homeowners (highlight agent contact information)
                              Mortgage Statement(s) (highlight contact #'s and account #(s))*
                        B.  Same as A PLUS
                              Management Company contract and contact information
                              Rental Agreement(s)
                              Bank Statement from rental account*
                        C.  You should have the year end statement but if you are starting in the middle of
                              the year use the most recent.  In January, replace it with the year end statement.
                        D.  You should have the monthly/quarterly statements and then replace them with the
                               year end statement.
                        E.  Same as above.  If on-line only (*)
                        F.  Monthly/Quarterly statements with year end.
                             Benefit and beneficiary statement with contact information
                       G.  Annual or bi-annual statement with declaration page, agent contact, payment and
                             renewal date
                       H.  Certificate of Creditable Coverage for each person covered with beginning date
                        I.  One statement per credit card account with contact information in case of loss.

I flagged each item within each tab so that it was clear what items were.  It's not a glamorous thing but the surviving person will appreciate that they aren't going to miss something important.

Our binder is kept in our safe in garage.  I can't remember the combination so Jim made it part of our password app and he wrote it somewhere in the house - yes, I remember where - so I can get to it if I need it right away. 

Someday I want a really good scanner that I can just scan these things and shred the paperwork.  For now this will do and I am secure in knowing my spouses financial well-being is taken care of.

*If you have on-line account access you should have a password app of some sort.  Make sure you note a HINT or something to remind the person reading this they should get on-line for more information.  Don't make it so difficult that no one else can ever get in - it is useless if you can't use it.