Safe and Readily Available
Character is like a tree
and reputation like a shadow. Abraham Lincoln
This week I’ll ask the question: Are your important documents secure and accessible? In an emergency, could your loved ones find everything they may need?
Beyond hurricane preparedness, having a digital and physical storage system established keeps your financial life organized and is a gift for you and others. In an emergency could your loved finds find your current estate planning documents (trust, will, and powers of attorney ~ health and financial? Does someone besides you know where your passport, deed(s), and keepsakes are located. And for that hurricane situation, are your documents in a waterproof, fireproof safe, or unprotected and unorganized?
Having the right documents is crucial as is having them updated, stored and accessible. Here are five tips to help you keep vital information safe and convenient to find, either for your “go bag” or for others to find.
Set yourself up for success with a scanner and shredder. Scan, toss, and shred is the solution for most pieces of paper. Upsides to digital storage include fewer restrictions on space, the ability to share files easily and securely, and searching by data or key word.
Less clutter is better. ScanSnap is a fancy scanner that automatically sorts documents by file type (photo or receipt) and names them based on content. Smartphone apps can provide this function as well. Storing and synchronizing digital data in the cloud is essential for recovery if you lose everything on your computer, or if its stolen or damaged.
Popular services include Dropbox, Google Drive, and iCloud. We offer a digital Vault with our Client Access application offering paperless statements, bill payment, funds transfer, file storage, and content management. There is the ability to share data with trusted family members and coordinate with other professionals like your CPA at tax time.
Think like an executor
First, does you executor know they’ve been selected, and are they willing and able to assume this responsibility? It may be beneficial to name a financial institution either alone or in conjunction with an individual to help make this overwhelming task more manageable and professionally implemented. Have you discussed with someone, and put in writing your final healthcare wishes and funeral details? Notarized physical documents are best stored in a fireproof safe. Your executor should know where the safe is, how to access, and what they’ll find inside. You can also keep an extra copy in a safe deposit box or with your estate attorney.
What to keep
Social Security cards, birth certificates and adoption decrees, property and vehicle deeds, marriage certificates, divorce decrees, financial institution statements, insurance policies, signed and notarized powers of attorney, a will and medical directive paperwork originals should be accessible. You can get copies of these, but it’s nice to have them handy.
Breadcrumb trail
Experts recommend keeping a copy of your medical directive in your car’s glove compartment and carry-on bag when traveling for worst-case-scenarios and giving copies to your doctor. List “in case of emergency” or ICE contacts on a card in your wallet and in your smartphone’s emergency call screen (for iPhone users, add this data in Apple Health; Android users can go to Settings > About phone > Emergency information).
Don’t forget about digital access including email, financial information, social media, photo, and music sites. Few of us think to create a paper trail to help locate these accounts and login IDs because it might invite unauthorized access. However, there is a secure way to guide your heirs.
The first step is to make an inventory and document details in a safe place. A secure spreadsheet template like yourdigitalafterlife.com, or a service like LastPass with an emergency access feature allows you to handoff passwords to heirs who can then securely maintain or close your accounts based on your wishes. If it’s your main household responsibility to pay the bills and track financial accounts, we’re talking to you. You want to leave a legacy, not a logistical headache.
Command station
Every home office needs a central collection spot for notes, bills, reminders, paperwork, and action items. For success, you’ll have to go through this on a daily or weekly basis to help clear your mind and focus on the given task at hand; knowing your household has a system for tackling all the incoming paper. The results are worth it.
Progress, not perfection
If your home office is in disarray, start small. Pick one tip specific to your situation and take action. What feels like a small win today could make a major, lasting difference for your loved ones. If you’re still feeling overwhelmed, ask your trusted CERTIFIED FINANCIAL PLANNER® Professional who knows your financial situation. They can you organize the record-keeping tasks that are important for your life. Stay focused and plan accordingly.
Raymond James is not affiliated with any of the organizations mentioned. Raymond James does not provide tax or legal advice. Please discuss these matters with the appropriate professional. The opinions expressed are those of the writer as of September 2, 2024, but not necessarily those of Raymond James & Associates, and subject to change at any time based on market conditions and other factors. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.
Certified Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. This article provided by Darcie Guerin, CFP®, First Vice President, Investments & Branch Manager of Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC 606 Bald Eagle Dr. Suite 401, Marco Island, FL 34145. She may be reached at (239)389-1041, email darcie.guerin@raymondjames.com Website: www.raymondjames.com/Darcie
