Thursday, June 30, 2011

money school: forward filing


file this under the top of your to-do list! this file folder system was taken from this book. i think it is a huge MUST for every family to do this together so that everyone is on the same page. if you don't have kids just omit #11. this filing process keeps all of your important documents safe and sound and nicely organized. this makes finding things and tracking your finances ten times easier. also, God forbid that something happens to you, this system will serve as a road map for your friends and family.

1. tax returns
-have 8 folders, 1 for the last 8 years
-include w2s, 1099s, and your tax returns in each folder
2. retirement accounts
-ira and 401k statements (have ind. folders for each)
3. social security statements
-email to receive them if you don't have them
4. investment accounts
-mutual funds, brokerage accounts, individual stocks (have ind. folders for each)
5. savings + checking
-monthly statements for each account (have ind. folders for each account)
6. household accounts
-house title
-home improvements: keep receipts here for home improvements because they can be added to the cost basis of your house when you sell it
-home mortgage: check your statements monthly to ensure that they are accurate. mistakes happen often.
7. credit card DEBT
keep debt in all caps to drive you crazy. make a folder for each card.
8. other liabilities
-college loans, car loans, personal loans, etc (have ind. folders for each)
9. insurance
-health, life, car, homeowners, long term care, disability (have ind. folders for each)
10. family will or trust
-copy of will or trust along with the business card of the attorney who set it up
11. children's accounts
-college savings, investments on child's behalf (have ind. folders for each)
12. finishrich planner
-you'll need the book for this!

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