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You've likely heard a lot about how getting organized will free up your time, make you more productive at work, eliminate stress, and even whiten your smile. That last one is a stretch, but organization has often been lauded as a small miracle from which we can all benefit.
Perhaps the most important area of organization relates to your personal financial documentation. These documents include anything related to your financial situation or plans that your family may need to access in your absence, or that you may need to access for special situations.
Account information
This can be a list of your account numbers, their registration/title, where they are held, who the advisor on the account is, and any beneficiaries.
You may have an entry that looks like this:
|
Title
|
Custodian
|
Advisor
|
Number
|
Beneficiary
|
| Jane Smith IRA |
NFS |
John Advisor |
A12-123456 |
Tim Smith |
| Savings Account |
Sample Bank |
N/A |
123-856987-032 |
Sue Smith |
Your file should also contain copies of account forms, statements, and contact information for each institution or advisor you work with.
Insurance policies
You should document information about any whole life, term, or long-term care insurance policies as you would account information. For these policies, you'll also want to include benefit amounts, so it is clear how much coverage you have.
Your entry could look like this:
|
Title
|
Custodian
|
Advisor
|
Number
|
Beneficiary
|
Benefit Amount
|
| Tim Smith Whole Life Policy |
ABC Insurance |
John Advisor |
ABC98765432 |
Sue Smith |
$1,000,000 |
| Jane Smith Long-Term Care Policy |
XYZ Insurance |
John Advisor |
LTC12345678 |
Jane Smith |
$289/month |
In addition to the inventory, this file should contain copies of your policies, premium payments, and any contact information for the companies and advisors involved.
Stock option plans
If you have a stock option plan from any job, keep a record of the number of shares to which you are entitled, the grant date of those shares, and the execution price you will receive on them.
Estate planning documents
All of your information could arguably be seen as estate planning information because it will be part of your legacy. There are, however, a few noteworthy items when it comes to planning for your final wishes. Compile copies of the following to simplify your estate processing
- Will
- Trust information (Your trust may be in force prior to your death as existing accounts; these would be catalogued above, but your will creates some trusts that should be kept with these other documents.)
- Cemetery plot deed
- Anatomical gift form
Pulling it all together
Once you've inventoried all of your documents, keep them in some organizing receptacle. Here's a tip: Store copies of everything in multiple locations to avoid the unlikely event of a disaster destroying all of your hard work. Be sure that your family is aware of the locations and can get to them if needed.
Another great way to ensure that you've organized all your documents is to rely on your financial professional to track and maintain copies of them. If you are not sure what they are storing, just ask!
Seek professional guidance
If this short list of material turned out to be an eye-opener for you, you may want to consult a financial professional. This list is not the complete catalog of documents that may be important to your circumstances. A professional can work with you to ensure that your finances, and your legacy, are organized.
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