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Getting Your Financial Affairs in Order Presented by: Jana Darrington, FCS Agent, Utah County Extension 801-851-8460 usu.edu/utah Created.

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Presentation on theme: "Getting Your Financial Affairs in Order Presented by: Jana Darrington, FCS Agent, Utah County Extension 801-851-8460 usu.edu/utah Created."— Presentation transcript:

1 Getting Your Financial Affairs in Order Presented by: Jana Darrington, FCS Agent, Utah County Extension usu.edu/utah Created by: Salt Lake County Extension

2 Organizing Your Important Financial Papers Presented by: Jana Darrington, FCS Agent, Utah County Extension Created by: Salt Lake County Extension

3 Jana Darrington Utah State University Extension Family & Consumer Science Agent Utah County Getting Your Financial Affairs in Order - Create a Grab and Go Box or Book

4 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 Adapted From:

5 Background

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7 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?

8 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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10 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?

11 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

12 Do you have a current household inventory? Do you have a financial notebook prepared for an emergency? Take a Look at Your Record Keeping

13 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!

14 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.

15 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!

16 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:

17 Bank StatementsKeep for 6 years Canceled Checks relating to tax deductionsKeep for 6 years ContractsKeep until Updated Credit Card account numbersKeep until Updated Home purchase & improvement recordsKeep as long as you own property Investment recordsKeep for 6 years after tax deadline for year of sale Loan agreementsKeep until paid in full Real Estate deedsKeep until transferred Receipts for large purchasesKeep until sold or discard Service contracts & warrantiesKeep until expiration (unless part of taxes) Tax returnsKeep 6 years from filing date Vehicle titlesKeep until sale or disposal WillKeep until Updated Insurance recordsKeep until Updated Discarding Documents

18 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)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) What to Keep, Where, and for How Long?

19 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.

20 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.

21 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…

22 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.

23 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.

24 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.

25 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.

26 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.

27 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

28 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

29 Other suggested Items to Add: Copies of… Medical History Illnesses, surgeries, diseases Important prescriptions Medicines Eyeglasses Childrens immunization records

30 Other suggested Items to Add: Copies of… Deeds Titles Wills &/ trust documents Durable power of attorney Healthcare directives

31 Other suggested Items to Add: Copies of… Stock and bond certificates Home inventory Birth, death, adoption and marriage certificates Passports Employee benefit documents

32 Other suggested Items to Add: Copies of… First two pages of previous years federal and state income tax returns Military service records

33 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 Include

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

35 Social Security (keep original card here or in safe deposit box) Bank account Loan Credit card Drivers license Investment account List of Important Numbers

36 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

37 Be Prepared for Disaster Assemble an Evacuation To-Go Box… or Financial Information Binder

38 What is a To Go Box or Binder? Portable file of Important papers Cash Phone numbers Photos Valuable information And more!!

39 To Go Box or Binder Contents Cash Rolls of quarters

40 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…

41 Doctors, pharmacies Financial institutions Insurance companies Local and national headquarters Credit card companies Clergy Repair contractors Family & friends Emergency Phone Numbers and Addresses

42 Copies of… Homeowners, auto, flood, renters insurance policies AND policy numbers Health, dental, and/or prescription insurance cards & numbers

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

44 Copies of… Deeds Titles Wills &/ trust documents Durable power of attorney Healthcare directives

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

46 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 Copies of…

47 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

48 Assembling To-Go Box Step 2 Store box at home in SECURE location easy to access

49 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

50 Update To Go Box Review annually Update Add or delete as needed

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

52 Planning & Preparation Can prevent the unexpected from becoming a harsh financial reality

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54 72 hours kitsmaintained and reviewedgrab your to gobox and your kit together. Car kits for travel emergencies. Carry-on kits for airplane travel emergencies. Additional Preparedness tips…

55 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 Airline Carry-on Kit Contents

56 American Red Cross FDICfor financial document info EDENExtension Disaster Education Network from Homeland Security, or Be Ready Sources of Information

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

58 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.

59 Slashing Expenses

60 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?

61 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


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