Getting Your Financial Affairs in Order

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

2. Adapted From: 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

3. Background

5. Are You Prepared? • 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?

6. Are You Prepared for Emergencies? • Natural Disasters • Tornado • Earthquake • Flood • Fire • Chemical/Bio Hazard • Pandemic • Medical Emergency • Death of a Family Member

8. Is Your Household Prepared for an Emergency? • 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?

9. Take a Look at Your Record Keeping • 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

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

11. 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, it’s probably time for you to get your financial records in order!

12. 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.

13. 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!

14. Discarding Documents

15. 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) • 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)

16. 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 annuallyandwhenevera significant change (such as a birth, death, marriage, divorce, relocation, purchase or sale of assets, etc) occurs.

17. 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.

18. Activity… • 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?

19. 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.

20. 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 isn’t too much at one time.

21. 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.

22. 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.

23. 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 you’ve replaced. • Paycheck stubs. Keep track of how much you have earned by keeping your check stubs together.

24. 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

25. 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, renter’s insurance policies AND policy numbers • Health, dental, and/or prescription insurance cards & numbers

26. Other suggested Items to Add: • Copies of… • Medical History • Illnesses, surgeries, diseases • Important prescriptions • Medicines • Eyeglasses • Children’s immunization records

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

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

29. Other suggested Items to Add: • Copies of… • First two pages of previous year’s federal and state income tax returns • Military service records

30. Include • 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

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

32. List of Important Numbers • Social Security (keep original card here or in safe deposit box) • Bank account • Loan • Credit card • Driver’s license • Investment account

33. 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

34. Be Prepared for Disaster Assemble an Evacuation “To-Go” Box… or Financial Information Binder

35. 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

36. Assembling “To-Go” Box Step 2 Store box at home in SECURE location easy to access

37. 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

38. Update “To Go” Box • Review annually • Update • Add or delete as needed

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

41. Additional Preparedness tips… • 72 hours kits—maintained and reviewed—grab your “to go”box and your kit together. • Car kits for travel emergencies. • Carry-on kits for airplane travel emergencies.

42. Airline Carry-on Kit Contents • Cell phone charger/important numbers • Emergency ID card • Cash • Moist towelettes/kleenex • Carry some food for backup • Drinks—buy once you get through security • Change of clothing/personal hygiene • Mylar blanket • Mark your luggage so it stands out

43. Sources of Information • American Red Cross • FDIC—for financial document info • EDEN—Extension Disaster Education Network • www.ready.gov from Homeland Security, or 1-800-Be Ready • www.beprepared.com • www.cdc.gov

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