Getting Your Financial Affairs in Order

Presented by: Jana Darrington,

FCS Agent,Utah County

Extension801-851-8460

http://extension.usu.edu/utah

Created by:Salt Lake County

Extension

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 ExtensionSusan 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

Adapted From:

Background

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?

Are You Prepared?

Are You Prepared for Emergencies?

Natural Disasters◦ Tornado◦ Earthquake◦ Flood

Fire Chemical/Bio Hazard Pandemic Medical Emergency Death of a Family

Member

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?

Is Your Household Prepared for an Emergency?

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

Take a Look at Your Record Keeping

Do you have a current household inventory?

Do you have a financial notebook prepared for an emergency?

Take a Look at Your Record Keeping

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, it’s probably time for you to get your financial records in order!

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.

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!

Bank Statements Keep for 6 years

Canceled Checks relating to tax deductions

Keep for 6 years

Contracts Keep until Updated

Credit Card account numbers Keep until Updated

Home purchase & improvement records

Keep as long as you own property

Investment records Keep for 6 years after tax deadline for year of sale

Loan agreements Keep until paid in full

Real Estate deeds Keep until transferred

Receipts for large purchases Keep until sold or discard

Service contracts & warranties Keep until expiration (unless part of taxes)

Tax returns Keep 6 years from filing date

Vehicle titles Keep until sale or disposal

Will Keep until Updated

Insurance records Keep until Updated

Discarding Documents

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/family-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)

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.

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.

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?

Activity…

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.

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 isn’t too much at one time.

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.

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.

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 you’ve replaced.

Paycheck stubs. Keep track of how much you have earned by keeping your check stubs together.

Other suggested Items to Add:

Cash in waterproof bag Bills & rolls of quarters

Valuable photos & negativesin waterproof bag

Contact Info for: Credit card companies Clergy Repair contractors

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, renter’s

insurance policies AND policy numbers

Health, dental, and/or prescription insurance cards & numbers

Other suggested Items to Add:

Copies of…Medical History

Illnesses, surgeries, diseases

Important prescriptions Medicines Eyeglasses

Children’s immunization records

Other suggested Items to Add:

Copies of…DeedsTitlesWills &/ trust documentsDurable power of attorneyHealthcare directives

Other suggested Items to Add:

Copies of…Stock and bond certificatesHome inventoryBirth, death, adoption and marriage

certificatesPassportsEmployee benefit documents

Other suggested Items to Add:

Copies of…First two pages of previous year’s

federal and state income tax returnsMilitary service records

Back-up of computerized financial records

Keys to safe deposit boxCombination to safeLabeled photos of family members

and petsNegatives/disks of irreplaceable

photos

Include

User names, passwordsList of debt obligations with due

dates, contact informationPhotocopies, front and back, of all

credit cards

Include

Social Security (keep original card here or in safe deposit box)

Bank accountLoanCredit cardDriver’s license Investment account

List of Important Numbers

Digital Files

Scan your documentsStore 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

Be Prepared for Disaster

Assemble an Evacuation

“To-Go” Box… or Financial

Information Binder

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

Assembling “To-Go” Box

Step 2 Store box at home

in SECURE location easy to access

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

Update “To Go” Box

Review annually Update

Add or delete as needed

Planning & Preparation

Can prevent the unexpected from becoming a harsh financial reality

72 hours kits—maintained and reviewed—grab your “to go”box and your kit together.

Car kits for travel emergencies.Carry-on kits for airplane travel

emergencies.

Additional Preparedness tips…

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

Airline Carry-on Kit Contents

American Red Cross FDIC—for financial document info EDEN—Extension Disaster Education

Network www.ready.gov from Homeland Security, or

1-800-Be Ready www.beprepared.com www.cdc.gov

Sources of Information

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