If you haven’t established a New Year’s resolution yet, or even if you’ve set your sights on another goal, we’d like to remind you that January is an excellent time to get your financial life in order. Taking these five simple steps can help you feel more organized, and make the rest of the year go more smoothly. Best of all, they’re not overly difficult or time-consuming!
Keep versus toss. If you’re like most people, you have a desk or drawer overflowing with various paperwork. The first step to getting organized is getting rid of things you no longer need. While you’re going through these documents, get rid of:
- Old insurance policies (if you’ve since renewed)
- Bank statements from more than a year ago
- Tax returns from more than seven years back
- Documents pertaining to items you don’t own anymore (old car titles, for example)
At the same time, you should definitely keep:
- Bank statements from the past year
- Current insurance documents
- Receipts from the past year
- Original loan documents
- Vehicle titles
- Household warranties
- Tax returns for the past seven years
- Personal identity documents
Organize. Create a special folder for estate planning documents, birth certificates, Social Security cards, and your marriage certificate. These should be placed in a secure location, and at least one other trusted person should know where they are.
Everything else listed above can be filed away according to the system of your choice. Backing everything up on a cloud system is a good idea, too.
Document your home’s contents. In the event that you need to make a major homeowner’s insurance claim, you need documentation of your possessions. The easiest way to do this is by walking through your home with a video camera (your smartphone will do). Keep a copy of the video in a secure place.
Get started on your taxes. Yes, the deadline is in mid-April each year, but start gathering necessary documents now. That way, you won’t be rushed in the spring, and risk missing the deadline.
Make an appointment with us. If we haven’t reviewed your retirement plan recently, let’s take care of that now. We can check up on your Thrift Savings Plan contributions, discuss your personal goals, and establish a tentative timeline for your retirement.
