Did you know that September is National Preparedness Month? Normally, when we think about “preparedness,” we think in terms of readying our houses for a natural disaster, like an earthquake or hurricane. But financial preparedness plays a role, too! That’s why I recommend that everyone use the month of September to make themselves financially prepared for the unexpected curve balls that life often throws at us.
What does that mean, exactly? Well, financial preparedness is far more than a well-managed portfolio. It’s the various steps you can take to guard your money against emergencies and disasters. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says that when it comes to preparing for emergencies, financial readiness is as important as a flashlight with fully charged batteries. With that in mind, here are some simple but powerful steps the FTC recommends to make yourself more “financially prepared.”
- Conduct a household inventory. Make a list of your possessions and document it with photos or a video. This could help if you are filing insurance claims. Keep one copy of your inventory in your home on a shelf in a lockable, fireproof file box; keep another in a safe deposit box or another secure location. And with that in mind…
- Buy a lockable, fireproof file box. Place important documents in the box; keep the box in a secure, accessible location on a shelf in your home so that you can “grab it and go” if the need arises. Among the contents:
- Your household inventory.
- A list of emergency contacts, including family members who live outside your area.
- Copies of current prescriptions.
- Health insurance cards or information.
- Policy numbers for auto, flood, renter’s, or homeowner’s insurance, and a list of telephone numbers of your insurance companies.
- Copies of other important financial and family records — or notes about where they are — including deeds, titles, wills, birth and marriage certificates, passports, and relevant employee benefit and retirement documents. Except for wills, keep originals in a safe deposit box or some other location. If you have a will, ask your attorney to keep the original document.
- A list of phone numbers or email addresses of your creditors, financial institutions, landlords, and utility companies (sewer, water, gas, electric, telephone, cable).
- A list of bank, loan, credit card, mortgage, lease, debit, and investment account numbers.
- Social Security cards.
- Backups of financial data you keep on your computer.
- An extra set of keys for your house and car.
- The key to your safe deposit box.
- A small amount of cash. ATMs or financial institutions may be closed.
- Consider renting a safe deposit box for storage of important documents. Original documents to store in a safe deposit box might include:
- Deeds, titles, and other ownership records for your home, autos, RVs, or boats.
- Credit, lease, and other financial and payment agreements.
- Birth certificates, naturalization papers, and Social Security cards.
- Marriage license/divorce papers and child custody papers.
- Passports.
- Appraisals of expensive jewelry and heirlooms.
- Certificates for stocks, bonds, other investments and retirement accounts.
- Trust agreements.
- Living wills, powers of attorney, and health care powers of attorney.
- Insurance policies.
- Home improvement records.
- Household inventory documentation.
- A copy of your will.
- Choose an out-of-town contact. Ask an out-of-town friend or relative to be the point of contact for your family, and make sure everyone in your family has the information. After some emergencies, it can sometimes be easier to make a long-distance call than a local one.
- Update all your information. Review the contents of your household inventory, your fireproof box, safe deposit box, and the information for your out-of-town contact at least once a year.
Taking a little time to get your financial documents in order is one of the best ways to be financially prepared in case the unexpected ever happens. It also brings the more immediate benefit of peace of mind knowing that you’ve done your due diligence. Please let me know if you have any questions, or if there is anything we can do to help!
Sincerely yours,
Joe Garrett
This material was provided for Joe Garrett’s use.
1 “How to Organize Your Important Papers Before a Disaster Strikes,” FTC, https://consumer.ftc.gov/how-organize-your-important-papers-disaster-strikes
