Enjoying the Ride: Keeping tabs on your most important financial documents

By Chris Fiacco EBS CONTRIBUTOR

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If something happened to you, would your spouse, your children, or your executor know where your most important documents are?

Financial organization is not just a matter of keeping your finances in check; it’s also about ensuring that your loved ones can easily access critical information in times of need. A lack of organization can lead to confusion, stress, and even financial loss for those left behind. Here are some effective methods and systems to create financial organization that can provide confidence for you and your family. 

1. Create a Financial Inventory – Begin by compiling a comprehensive inventory of your financial assets. This should include bank accounts, investment accounts, retirement accounts, insurance policies, and real estate. List the institution names, account numbers, and contact information for each asset. This inventory serves as a roadmap for your loved ones, guiding them to where they can find necessary documents. 

2. Organize Important Documents – Gather all essential documents and organize them in a secure, accessible location. These documents include wills, trusts, powers of attorney, tax returns, and marriage certificates, among others. Consider using a filing cabinet, a fireproof safe, or even a digital storage solution. When organizing, label each folder clearly for easy access. Digital tools such as cloud storage services can also be helpful but ensure that passwords and access details are shared with trusted individuals. 

3. Use Financial Software or Apps – There are various financial management software and apps available that can help you track your financial life more efficiently. Tools like these can help you keep track of your income, expenses, and investments. Many of these platforms allow you to categorize your finances, set goals, and monitor your progress. Additionally, some apps offer features to share information with family members, which can be beneficial in case of emergencies. 

4. Establish a Trust or Will – Establishing a trust or will is a crucial step in financial organization. A trust can help avoid probate and ensure that your assets are distributed according to your wishes. A will outlines how your assets should be handled after your death. It’s important to keep these documents updated as your financial situation changes, such as after a marriage, divorce, or birth of a child. Consulting with a legal professional can help you navigate the complexities of estate planning. 

5. Regularly Review and Update Your Investment Plan – Financial organization is not a one-time task; it requires regular review and updates. Set aside time annually to revisit your financial inventory, important documents, and estate planning tools. Life changes—such as changes in income, employment, or family dynamics—should trigger a review of your financial organization. Keeping everything current helps ensure that your loved ones are not burdened by outdated information. 

6. Communicate with Your Family, Communication is Key – Make sure your spouse, children, or executor are aware of your financial organization system. Teach them how to access important documents and understand your financial situation. This conversation can be difficult, but it is essential for their comfort level and your own. Consider holding family meetings to discuss financial matters openly and encourage questions. 

Financial organization is an essential aspect of responsible financial management that directly impacts your loved ones. By creating a financial inventory, organizing important documents, utilizing financial software, establishing a trust or will, regularly reviewing your plan, and communicating openly with your family, you can create a robust financial organization system. This proactive approach not only provides clarity but also ensures that your family is prepared for any situation that may arise in the future. At Shore to Summit Wealth Management, we can assist you with your financial organization and the construction of a comprehensive investment plan, allowing you to “Enjoy the Ride.”

Chris Fiacco is a Managing Partner of Shore to Summit Wealth Management.

Wells Fargo Advisors Financial Network is not a legal or tax advisor. Be sure to consult your own tax advisor and investment professional before taking any action that may involve tax consequences.

Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy Wells Fargo Advisors Financial Network and Shore to Summit Wealth Management are not legal or tax advisors. You should consult with your attorney, accountant and/or estate planner before taking any action.

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