More Tips on How to Maintain Your Financial Records

Digital filing systemAre you a minimalist that trashes all of your financial documents, assuming you'll be able to retrieve what you need when you need it.  Should you be?

While the digital age is certainly making it easier to electronically store financial documents, it not a good idea to rely exclusively on digital resources to manage and track your financial accounts and pay bills. Financial services will remind us that paperless is the green way to go. Assuming you take some commonsense actions to protect against financial fraud, it can also be very safe. However, before you go the minimalist route, put some basic infrastructure in place with these steps.

Secure Your System. Moving your document storage from paper to digital is a vital element of getting your financial house in order. A big first step before you switch over is to be certain of the security of your home computer network with up-to-date antivirus and antispyware software, firewalls and a spam filter. A good system for periodic backing up of the data is also essential. Also, you'll need to password-protect your computer as well as sensitive documents. Finally, be careful about trying to access financial information when you're away from home. Never log into any financial accounts when using a public or unsecured network.

Create a Master Directory. Next, create a password-protected digital directory of your accounts with user names and passwords, websites, and information about where these files are on your computer. This document can be handwritten, but it's crucial to keep that document in a safe location—like a locked, fire-safe box or a safe-deposit box. Also, it's important to tell a trusted loved one of your master directory and how to gain access to it.

Investigate Your Providers' Information Systems. Do a quick audit of the quality of the digital statements provided by your banks, brokerage and mutual fund companies, and other companies with which you conduct business. Be savvy with your passwords for your information on external providers' sites.

Create a Logical Digital Filing System. When creating a secure environment for your sensitive financial information, create an intuitive organization system for digital files. Consider using broad topic folders like "Insurance," with subfolders for "Auto Insurance" and "Life Insurance."

Have a Plan for Your Receipts. Go ahead and recycle receipts for inexpensive, everyday purchases and scan receipts for items you might need to return or otherwise document the proof of purchase.

Stop It at the Source. If you're getting unwanted catalogs or other junk mail, contact the company and ask to be removed from the mailing list.

Weed Through Existing Files. Sort through existing files and clear out the files you no longer need. Those very hard-to-replace items like certificates of marriage, birth and death; adoption papers; Social Security cards; deeds; and car titles should be stored in a safe-deposit box or an in-home fireproof box. Plus, keep a copy of estate planning documents in your home and inform a trusted loved one about these documents and their location.

Reference: Morningstar (April 18, 2016) "How to Organize Your Financial Documents"


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We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.