Organize Your Financial Life

You may have made a few New Year's Resolutions such as losing weight, or paying off some debts, or saving more money. But I'm willing to bet that you overlooked making a resolution to do something we should all be doing: organizing your financial life!

The first step to getting your financial life organized is sorting your important documents. These documents fall into two categories: (1) critical documents that go into a safe deposit box and (2) important-but-not-critical documents to store at home.

A safe-deposit box is for those documents that would be difficult or impossible to replace. Documents that you can replace can stay at home in a centralized file drawer, or better yet, a fireproof safe. Here's where to store your vital documents:

SAFE DEPOSIT BOX

* Family documents such as marriage licenses, birth certificates, adoption papers, divorce decrees, and diplomas.

* Vehicle titles.

* Original copies of wills and trusts.

* Real estate deeds or certificates.

* Video and written inventory of home contents.

* Social Security cards.

* Stock certificates.

* List of bank, brokerage, credit union, mutual fund, and credit card accounts.


IN-HOUSE FILE

* Power of attorney and medical directives.

* Copies of wills and trusts.

* Funeral and burial instructions.

* Insurance policies.

* Passports.

* List of bank, brokerage, credit union, mutual fund, and credit card accounts.

* List of trusted family advisors: lawyers, accountants, broker, financial planner, realtor, insurance agent, etc.

* List of the contents of the safe deposit box.

* Most importantly, the directions for its location and how to access it.

Make sure that all your family members know where your in-house documents box is actually kept, as well as information about where safe deposit boxes are located.

Getting organized is simple, doesn't take much time, and is one of the smartest steps you can make for 2005!

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