Organizing Your Important Financial Papers

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Presented by Jana Darrington, FCS Agent, Utah
County Extension 801-851-8460 http//extension.usu
.edu/utah Created by Salt Lake County Extension
Getting Your Financial Affairs in Order
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Presented by Jana Darrington, FCS Agent, Utah
County Extension Created by Salt Lake County
Extension
Organizing Your Important Financial Papers
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Getting Your Financial Affairs in Order- Create
a Grab and Go Box or Book

• Jana Darrington
• Utah State University Extension
• Family Consumer Science Agent
• Utah County
• 801-851-8460
• http//extension.usu.edu/utah

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Adapted From

• Teresa Hunsaker , B.S. FCS Agent, Weber County,
  USU Extension
• Marilyn Albertson, MS, CFCS, FCS Agent, Salt Lake
  County USU Extension
• SuzAnne Jorgensen, MS, CFCS, FCS Agent, Garfield
  County USU Extension
• Julie Ingersoll, MS, CFCS, FCS Agent, Kane County
  USU Extension
• Susan Cosgrove, Area Family Resource Management
  Agent, Mississippi State University Extension
• LSU Ag Center
• State of Mississippi
• University of Arkansas Cooperative Extension
  Service
• Virginia Cooperative Extension

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Background
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Are You Prepared?

• What events or situations would require you to
  have a portable document detailing your financial
  affairs to take with you out of your home?
• Could you get it quickly?

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Are You Prepared for Emergencies?

• Natural Disasters
• Tornado
• Earthquake
• Flood
• Fire
• Chemical/Bio Hazard
• Pandemic
• Medical Emergency
• Death of a Family Member

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Is Your Household Prepared for an Emergency?

• Do you know what kind of homeowners insurance
  coverage you have and how extensive it would be
  if there be a flood, earthquake, theft, or other
  natural disaster?
• How much medical insurance do you have and would
  it cover a severe illness, disability or
  hospitalization?
• Do you have a life insurance policy adequate to
  cover needs of your family if you or your spouse
  were to die? If single, do you have adequate
  insurance to cover your bills and other expenses?

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Take a Look at Your Record Keeping

• Do you have important documents stored safely?
• Do you know how long to store different types of
  records?
• Do you have files set up for
• Family Records
• Property Records
• Financial Records
• Legal Records

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Take a Look at Your Record Keeping

• Do you have a current household inventory?
• Do you have a financial notebook prepared for an
  emergency?

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Why Organize?

• Have you ever forgotten to pay a bill because you
  misplaced it?
• Have you ever spent hours looking for your
  insurance policy?
• Do you ever find yourself searching through
  mountains of paperwork for just one receipt?
• If you answered yes to any of these questions,
  its probably time for you to get your financial
  records in order!

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Getting Organized

• Time. Set aside several hours of one-on-one time
  for you and your financial records.
• Space. Find a spot where you can spread out for
  a while.
• Game plan.
• Place. Designate a specific place to keep your
  records.
• Financial Binder contact information
  documents
• Filing Cabinet several years worth of records
• Safe deposit box valuable or hard-to-replace
  documents
• Routine. Set a schedule for handling papers and
  records.
• First Saturday of each month or Last Day of each
  month
• Decide on a time and make an appointment to keep
  it!
• Person. If you share finances with another
  adult, decide who will take charge. Keep your
  partner involved. For singles, keep a trusted
  relative or friend informed about your records.

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Getting Your Home System Started

• Current Files. Files for records or transactions
  that accumulate during the year. The important
  files will be moved to the permanent file at the
  end of the year.
• EX Bank statements, medical records, bills (paid
  and to-be-paid)
• Easily accessible filing cabinet, box, or binder
• Permanent Files. On-going records that are used
  only on occasion, but need to be kept. Update
  annually or as needed
• Filing cabinet, bankers box of records, or
  Financial Binder
• Dead Storage. Records of uncertain value or
  those you are uncomfortable discarding.
• When Discarding Records, be careful. Many
  documents contain sensitive information.
  Investing in a cross-cut paper shredder is a wise
  idea to avoid identity theft!

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Discarding Documents

• Its okay to discard documents that you no longer
  needthis decreases clutter.
• The IRS audits tax returns up to three years
  after filing however, large underpayments may be
  investigated as far as six years back.
• The following chart indicates what documents you
  need to keep and how long you should keep them

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Discarding Documents
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Record of Important Papers

• Knowing what you already have can help you decide
  which important papers you will need to start
  organizing and/or updating.
• Fill out the Record of Important Papers
  interactive form and save it to your computer's
  hard drive. (http//extension.usu.edu/utah/htm/fam
  ily-finance)
• Be sure to update the information at least once a
  year
• What to Keep, Where, and for How Long? (click on
  link to open PDF document)

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Financial Information Binder

• Why?
• Provides a quick reference to your entire
  financial situation.
• Readily available personal, medical, financial
  information for you or someone else to manage
  your affairs if you are unable to do so.
• Update a Financial Information Binder annually
  and whenever a significant change (such as a
  birth, death, marriage, divorce, relocation,
  purchase or sale of assets, etc) occurs.

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What you need

• Sturdy 3-ring binder.
• At least 16 index dividers. You will label the
  dividers with the titles of your Notebook items.
• Plastic page protectors.
• College-ruled notebook paper.

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Activity

• On a piece of scratch paper or note paper, please
  write down all the telephone numbers of people
  you would call in an emergency.
• What numbers do
• you think it would
• be important to
• have?

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Suggested Binder Items

• Personal Directory. People who should be notified
  in case of death, incapacitation, or any other
  emergency.
• Professional Directory. Medical, business, legal,
  religious, professional contacts.
• Financial Information. Information related to
  your checking/savings accounts, wills, trusts,
  loans, investments, credit cards, etc.

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Suggested Binder Items

• Goals List. Short, medium, long-term goals can
  be listed here.
• Personal Property Inventory. Should include all
  personal property that you own. This information
  is used for net worth statement and for insurance
  purposes. Take photos and list estimated worth
  where possible.
• Break it into steps, rooms, or assign to family
  members so it isnt too much at one time.

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Suggested Binder Items

• Net Worth Statement/Income-Expense Statement.
  Include all assets and liabilities.
• Budget/Special Expenses. Annual spending plan,
  cash flow statement.
• Loan Papers. All agreements you are in currently.
• Income Tax Information and Documents. All
  information that will be necessary when filing
  your taxes.
• Rental or Lease Agreements. All agreements you
  are in currently.

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Suggested Binder Items

• Insurance Policies. Types of policies, company
  names, and policy numbers.
• Social Security Benefits Statement.
• IRA or 401K statements.
• Birth Certificates, Immunization Records, Social
  Security Cards. If these items are not stored
  here, list where they are so you can find them
  when you need them.

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Suggested Binder Items

• Credit Report. You can get a free credit report
  once a year, so keep your most current copy here.
  Shred the one youve replaced.
• Paycheck stubs. Keep track of how much you have
  earned by keeping your check stubs together.

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Other suggested Items to Add

• Cash in waterproof bag
• Bills rolls of quarters
• Valuable photos negatives
• in waterproof bag
• Contact Info for
• Credit card companies
• Clergy
• Repair contractors

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Other suggested Items to Add

• Most original documents should be kept in a safe
  deposit box or at another location
• Copies of
• Homeowners, auto, flood, renters insurance
  policies AND policy numbers
• Health, dental, and/or prescription insurance
  cards numbers

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Other suggested Items to Add

• Copies of
• Medical History
• Illnesses, surgeries, diseases
• Important prescriptions
• Medicines
• Eyeglasses
• Childrens immunization records

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Other suggested Items to Add

• Copies of
• Deeds
• Titles
• Wills / trust documents
• Durable power of attorney
• Healthcare directives

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Other suggested Items to Add

• Copies of
• Stock and bond certificates
• Home inventory
• Birth, death, adoption and marriage certificates
• Passports
• Employee benefit documents

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Other suggested Items to Add

• Copies of
• First two pages of previous years federal and
  state income tax returns
• Military service records

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Include

• Back-up of computerized financial records
• Keys to safe deposit box
• Combination to safe
• Labeled photos of family members and pets
• Negatives/disks of irreplaceable photos

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Include

• User names, passwords
• List of debt obligations with due dates, contact
  information
• Photocopies, front and back, of all credit cards

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List of Important Numbers

• Social Security (keep original card here or in
  safe deposit box)
• Bank account
• Loan
• Credit card
• Drivers license
• Investment account

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Digital Files

• Scan your documents
• Store on flash drive
• and CD
• If you use a flash drive, always back up on CD
• NOTE Computer files are not 100 safe always
  have a back-up

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Be Prepared for Disaster

• Assemble an Evacuation
• To-Go Box or Financial Information Binder

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What is a To Go Box or Binder?

• Portable file of
• Important papers
• Cash
• Phone numbers
• Photos
• Valuable information
• And more!!

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To Go Box or Binder Contents

• Cash
• Rolls of quarters

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Activity

• On a piece of scratch paper or note paper, please
  write down all the telephone numbers of people
  you would call in an emergency.
• What numbers do
• you think it would
• be important to
• have?

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Emergency Phone Numbers and Email Addresses

• Doctors, pharmacies
• Financial institutions
• Insurance companies
• Local and national headquarters
• Credit card companies
• Clergy
• Repair contractors
• Family friends

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Copies of

• Homeowners, auto, flood, renters insurance
  policies AND policy numbers
• Health, dental, and/or prescription insurance
  cards numbers

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Copies of

• Medical History
• Illnesses, surgeries, diseases
• Important prescriptions
• Medicines
• Eyeglasses
• Childrens immunization records

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Copies of

• Deeds
• Titles
• Wills / trust documents
• Durable power of attorney
• Healthcare directives

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Copies of

• Stock and bond certificates
• Home inventory
• Birth, death, adoption and marriage certificates
• Passports
• Employee benefit documents

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Copies of

• First two pages of previous years federal and
  state income tax returns
• Military service records

• Most original documents should be kept in a safe
  deposit box or at another location

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Assembling To-Go Box

• Step 1
• Place items in folders or envelopes
• Place in sealed, waterproof plastic
• Store in durable, sealed box
• Fireproof waterproof is recommended

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Assembling To-Go Box

• Step 2
• Store box at home in SECURE location easy to
  access

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Assembling To-Go Box

• Step 3
• If you must evacuate grab box and take it with
  you
• Keep box with you at all times
• Do not leave box unattended in your car

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Update To Go Box

• Review annually
• Update
• Add or delete as needed

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Replacing Valuable Documents

• What if you lose everything?
• Resources for replacing documents may be
  destroyed
• Most can be replaced
• Resource list compiled for Utah

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Planning Preparation

• Can prevent the unexpected from becoming a
  harsh financial reality

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Additional Preparedness tips

• 72 hours kitsmaintained and reviewedgrab your
  to gobox and your kit together.
• Car kits for travel emergencies.
• Carry-on kits for airplane travel emergencies.

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Airline Carry-on Kit Contents

• Cell phone charger/important numbers
• Emergency ID card
• Cash
• Moist towelettes/kleenex
• Carry some food for backup
• Drinksbuy once you get through security
• Change of clothing/personal hygiene
• Mylar blanket
• Mark your luggage so it stands out

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Sources of Information

• American Red Cross
• FDICfor financial document info
• EDENExtension Disaster Education Network
• www.ready.gov from Homeland Security, or
  1-800-Be Ready
• www.beprepared.com
• www.cdc.gov

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• Utah State University is an affirmative
  action/equal opportunity institution.

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Plan to have Adequate Insurance

• What is Insurance and how does it work?
• Types of Insurance
• Health
• Life
• Homeowner or Renter
• Auto
• Because of changing circumstances, need to
  evaluate insurance needs every few years.

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Slashing Expenses
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Where are your problem areas with
spending/saving?

• As you tracked your income/expenses, did you
  identify any areas where you are spending too
  much?

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Slashing Expenses

• Choose one of the following areas and review
  suggestions for reducing expenses. Choose at
  least three to use
• Clothing Expenses
• Grocery Bill
• Entertainment Expenses
• Medical Bill
• Other (Miscellaneous) Expesnes
• Transportation Bill
• Utility Household Maintenance Bill
• Boosting Savings