This Mother’s Day, you may want to follow the advice of Jason Alderman in his recent post on practicalmoneyskills.com.
Rather than the traditional flowers, card or phone call, spend some time with Mom and her finances. Help her sort out important records so both of you know what they are and where they are. A thorough review of documents will reveal any missing items and raise questions that can be answered now rather than during a potential crisis when you may need information quickly.
Alderman suggests dividing documents into categories:
Retirement Income
- Social Security
- Pension Plans
- IRAs and 401(k)
- Bank Accounts: checking, savings, money market, CDs
- Stocks, Bonds and Mutual Funds
Outstanding Debts
- Mortgages, Equity lines of credit and other property loans
- Car loans or leases
- Credit Cards
- Medical Bills
- Personal loans
Other
- Insurance Polices: medical, real property, auto, health, long term care
- Will or Trust
- Health Care Proxy or Durable Power of Attorney
- Birth Certificate, Marriage license, Social Security card, Funeral plans, Safe Deposit Box information
- Contact Information : Lawyer, Doctors, Dentist, Pharmacist, Insurance Agent, Financial Advisor, Banker (All of these Professionals should have your contact information as well).
Resolve to make this an annual review so that all documents are up to date and reflect your Mother’s wishes.
Give yourself the same gift. Straighten out all your own account information and keep it in a safe place. Let a family member or someone else you trust know where all your important papers are kept.
Read the full article here.