Organizing Important Records and Organizing Your Life - a 15-Minute Guide

January. The New Year. It always seems like a good time to reflect, plan and begin anew.

You make resolutions to lose weight or make more money to better your life.

You vow to eat healthy. To exercise more. To purge your closets of the fashions you never wear. Or maybe you promise to spend more time with friends and family.

Yet there is a little-known resolution unknown to most people. A simple and painless commitment that brings those who resolve to make it an organized life, less daily worry and complete peace of mind.

More specifically, I am talking about eliminating your worry and concerns about money, your life and your health by organizing all your important records and documents.

In fact, organizing your important documents is one resolution you can and should keep. It will give you and your loved ones security and peace of mind in the event of a crisis or unforeseen emergency.

It is better to look ahead and prepare than to look back and regret.

- Jackie Joyner Kersee

As a daily money manager, professional organizer and family office consultant for more than 20 years, I have seen panic-stricken families scrambling to locate important records during times of crisis when they should be spending time with their loved ones.

Rather than searching your home or office for the vital information you need, you can have all of this information organized in easy-to-find locations. This will allow you to focus on the event or crisis at hand. It is a relief to know exactly where to find important medical and insurance information, burial papers, real estate deeds, military records, safe deposit keys, financial accounts and wills. It also helps you get through the crisis faster with the smoothest transition possible considering the circumstances.

Although it will take a little time, it is not difficult to gather and organize your important records. That is why I recommend to start right now.

The key is to break the process down into simple fact gathering sessions where the whole family can get involved. After getting all of your important documents and information in order, you store them in a safe place.

Following is a quick, easy-to-use plan for organizing your vital records... and your life.

Home

The first thing you need to do is have all your important household documents, files and papers organized and readily available so you and your loved ones can find this information without issue.

• Make a complete record of personal information for each member of your family. Include name, address, social security number, marital status, etc. Be sure to include information about aging parents if you are responsible for their care (power of attorney, medical info, elder care details, etc.).
• Make an inventory of the contents in your home and any items in storage. Support this inventory with photographs, video recordings and licensed appraisals when possible.
• Create a list and description of all real estate you own. Locate and organize deeds, leases and title information. Include all properties such as residential, rental, investment, commercial and time-shares.
• Locate and organize all insurance records (life, health, accident, business, etc.).
• Make a list including names, addresses and phone numbers of all service providers and advisers (plumber, electrician, doctor, dentist, lawyers, accountant, insurance agents, etc.)
• Make a list including names, addresses and phone numbers of all domestic hires (nannies, caregivers, housekeepers, gardeners, etc).
• Make a list of all online accounts and passwords. This is especially important for financial accounts such as bank, investment and retirement accounts.

Health

Having your health information readily available is not only prudent, it can be a lifesaver in the event of an emergency. This is especially true for individuals with acute illnesses, disabilities and older adults.

• Make a file with medical history for each member of your family. Be sure to include date of birth, current height/weight, allergies, blood type and past or current illnesses.
• Make a list of doctors and their specialties, pharmacies used, health insurers and local hospital information. Include addresses and phone numbers.
• Make and post an emergency contact list. Put it in an obvious location such as on the refrigerator door, inside a cabinet or above a kitchen phone. Include names and addresses for family members, doctors and all emergency contacts.
• Make and maintain an accurate list of current prescriptions and pharmacies.

Assets

Protect your loved ones with careful and organized record keeping in addition to financial and estate planning. This will help ensure you minimize taxes and asset loss.

• Keep an updated list of all assets and liabilities.
• Keep one copy and give another to a trusted adviser and or a relative.
• Locate and organize all asset related documents (investments, retirement, insurances, etc.).
• Make a list of every insurance policy you own. Include benefit, premium and customer service information for each.
• Plan to lose your wallet! Make a list of all credit, ATM and insurance cards along with phone numbers for cancellation and replacement.
• Have your income and dividend checks deposited directly into your bank account. It is easy, secure and eliminates lost or stolen checks.
• Inventory the contents of your safety deposit box and store the information in a safe place. Do not keep anything in your safe deposit box that you need immediate access to such as an original will, cemetery deed, burial instructions, etc.
• If you use a safe in the home to store important records and assets, be sure it is fireproof and that someone you trust has the combination or key to gain access.

Estate Planning

The best way to protect your current lifestyle is to make personal and financial arrangements before life-changing events occur. This is the only way to be sure your wishes are carried out in the event of disability or death. Please note: it is best to seek the advice of an estate lawyer and financial adviser when planning your estate.

• Make a will or revocable living trust now, while you are able to make timely and competent decisions.
• Designate a power of attorney for those circumstances where you may be temporarily or permanently disabled.
• Prepare a living will and health care proxy that explain your wishes concerning artificial life-support measures. Be as detailed as possible.
• Store your will and health care proxy documents in an organized filing system with other vital records.
• Choose a guardian or guardians for minor children and make appropriate financial provisions for them.

Uncle Sam

Whether a professional prepares your taxes or you prepare them yourself, it is important to keep and organize all information needed to file returns. Maintaining good tax records throughout the year will alleviate tax time jitters and save you a significant amount of time.

• Set up a grass catch file to hold all tax related documents for the current year. Include medical receipts, real estate receipts, business expenses, investment expenses, IRS 1099s, W-2, K-1 and stock buy/sell confirmations.
• Organize and store completed tax returns and supporting documents by year in a permanent location.
• Record where copies of the last three years of returns can be located along with the name, address and telephone number of your accountant or preparer.
• Retain tax records, bank statements, deposit slips, canceled checks and credit card statements for three to seven years.
• Be sure to pay all federal, state, local and real estate tax liabilities on time to avoid late fees and penalties.
• Keep records and receipts for all home improvements. This is still a great tax deduction when you sell your home.
• Have your tax refund electronically deposited into an interest bearing bank account. This saves time and you start earning interest immediately.

Of course, there are other activities and documents you should include when organizing your life. But the simple plan outlined here includes the most important things you need to consider.

So what are you waiting for? Get organized this January and enjoy your best year ever!

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