My News 2: Prepare your money matters for an emergency

Jennifer Blanchard is a financial advisor with Commonwealth Financial Group. She's a also a registered investment advisor through Securian Financial Services.  She joined me on My News 2 today to help us make sure we have our affairs in order in case of an emergency. She providing more details below for us as a "web extra!"

From Jennifer:

As we enter what is typically the more active part of hurricane season, don’t be caught unprepared. Just as it’s important to have your house ready—plywood to board up windows, loose shingles repaired—it’s crucial to have your financial house in order as well.  What would happen if you suddenly had to evacuate?  Heaven forbid, what if you returned to find your home destroyed?  Would you have gathered the necessary financial documents so there was no interruption in your financial life?  

I advocate creating and maintaining a legacy box where all important financial information is stored.  This would be helpful if you had to evacuate in a hurricane, a fire or if you lost a spouse.  Because oftentimes one spouse tends to have a more active role in handling the family finances, the one left behind may not even know what accounts exist and where they are held.  This legacy box can be a valuable tool that saves a lot of time and stress.

I recommend using a file box that you can grab and go—fireproof and waterproof options are available.  Create a master document that details all pertinent info and then have a file folder for each category containing its necessary documents.  Be sure to include the following areas on the master document and corresponding files: 

1.)    Property Information including address, purchase price, owner(s), purchase date and current market value. Be sure to include your primary residence as well as any other real estate holdings. In a file titled “real estate,” include property tax statements and keep deeds in your safe deposit box at the bank. 

2.)    Mortgage information on all properties, including mortgage company name, loan number, owner(s), start date, interest date, original loan time period, payment amount and frequency, and outstanding principle amount.  In a file titled “liabilities,” include statements on these loans. 

3.)    Personal assets listing (cars, boats, etc) to include asset name, purchase amount, owner(s), purchase date and current market value. Also list all information on any related loans and include loan statements in the “liabilities” file. 

4.)    Listing of all financial assets such as checking accounts, savings account, CDs, non-qualified investment accounts, college savings funds, 401(k), pension plans, IRAs and annuities. Include the name of the asset (type of account) and financial institution, account number, owner(s) and approximate market value. Include web address, log in and password information on all accounts for which you have online access. Keep a copy of a statement on each of your accounts in a file titled “investments.”  If you own any stock certificates be sure to keep those in your safe deposit box as they are actual securities like cash.

5.)    Listing of insurance information. For your medical insurance, homeowner’s insurance, auto insurance and umbrella insurance, include the name of insured(s), insurance company, policy number, annual premium, phone number of the company, agent name and coverage limits. For life insurance, include company name, policy number, type, insured, policy-owner, beneficiary, annual premium and death benefit. For disability insurance and long-term care insurance, include company name, policy number, name of insured, waiting period, benefit period, benefit amount and monthly premium. In a file titled “health insurance,” include your medical, long-term care and disability insurance policies. Place your life insurance policies in a file titled “life insurance” and place your homeowner’s, umbrella, and car insurance policies in a file named “property and casualty insurance.” 

6.)    Include a listing of your professional advisers with pertinent contact information such as your attorney, CPA, trustee, financial adviser, primary physician and clergy.

7.)    Information on your safe deposit box such as bank name, box number and location of key and what important documents are in it: will, trust agreements, power of attorney, birth certificate, marriage license, car titles and deeds. Place copies of these documents in a file in the box titled legal documents, but always house the originals in your safe deposit box at the bank. 

Get in the habit of updating this information regularly — each time a new large purchase is made and a liability is retired. Also, update the statements on investments periodically to reflect a more appropriate market value. 

While putting together a tool like this will take some time, it will save you both time and money in the long run. With your financial house in order, it will be so much easier for you and your family to access some very important information at those critical times. By creating your own legacy box, you will have a greater peace of mind today and ultimately provide more security for yourself and your heirs tomorrow. 

Jennifer Blanchard is a Registered Representative and Investment Advisor Representative of Securian Financial Services, Inc.  Securities Dealer, Member FINRA\SIPC, a Registered Investment Advisor.