Get Ready!: A Step-by-Step Planner for Maintaining Your Financial First Aid Kit

by Tony Steuer

Overview

Hurricanes. Forest fires. Earthquakes. Floods. Now more than ever, uncertainty about our living environment is a fact of life. This prospect raises an important question we all-too-rarely ask in advance:

“What happens to the pieces of my financial life if an emergency hits?”

The same can be asked in the face of other crises like sudden health diagnoses.

The good news is, you can prepare. In GET READY!, financial expert and award-winning author Tony Steuer explains how you can get organized and plan for the vagaries of life. Trained as a first responder for wilderness outings, Tony takes the first aid approach to financial preparedness. This means having the right supplies and checklists at your fingertips for emergencies of all sorts, from illness to fires and floods, which could make it difficult for you to access your financial records.

After explaining what, exactly, each piece of your financial life is—from bonds and bank accounts to CDs and retirement plans—GET READY! guides you through the process of documenting vital information and gathering it in one place.

The book also demystifies the world of personal finances, explaining how to easily assess your own financial situation, identify issues that need to be addressed, become better educated about your finances, maximize your resources, and use simple tools and techniques to improve the health of your current financial plan.

With GET READY!, you'll learn how to take the right steps . . . before it’s too late . . .

Product Details

ISBN-13:	9780692163924
Publisher:	Greenleaf Book Group, LLC
Publication date:	01/17/2019
Pages:	258
Product dimensions:	8.50(w) x 11.00(h) x 0.54(d)

Read an Excerpt

CHAPTER 1

How to Use This Planner

The best first aid kit is the one that you have with you.

A first aid kit won't help you if you don't know how to use the various components. Learning how to use the various components requires education and training. Just like your first aid kit, the more that you put into this planner, the more you'll get out of it.

The planner is designed to walk you through your financial life to help you gather and document all of your information in one place. Think of it as having a full financial check-up. When a first responder does an assessment of a patient, they do a complete head-to-toe exam that is supplemented by more detailed assessments when a specific issue is spotted. Similar to a first responder's comprehensive exam, this planner will guide you through a full exam of your financial life while allowing you to add in details for the specific sections that apply to you.

The "GET READY!" system that we discussed in the Introduction will guide you through each chapter. The planner is designed for you to fill out at your own pace, step-by-step, rather than in one marathon cram session.

THE CHECK-IN GAUGE

This planner uses a check-in gauge to help you track your progress through each chapter and to provide guidance through an overall tracker. The check-in appears at the end of each chapter and enables you to see if an area is not applicable, in process, or completed.

To supplement this planner, I recommend that you put together a companion GET READY! binder along with a flash drive or cloud account to back up your documents. For sensitive documents, such as passports, Social Security cards, and marriage and birth certificates, you will want a fireproof safe or safe-deposit box.

Your GET READY! binder will have the paper copies of your major financial documents that are not stored in a secure location. In each section, there is information about what you should consider adding to the GET READY! binder. Paperwork that you'll want to put in your GET READY! binder includes such items as insurance policies and certificates, bank account details, investment statements, loan documents, and estate planning documents.

As you work through the planner, you'll be guided on what to add to your GET READY! binder, as well as what to put in your safe or to back up with your USB thumb drive or cloud account. This is just like putting together a first aid kit, where items are added as you go through a checklist of basic needs and possible emergencies.

CREATING A GET READY! BINDER FOR DOCUMENTS

Here's a list of what you will need for your GET READY! binder, at least to start with:

• Three-ring GET READY! binder (I recommend the Case-it Mighty Zip Tab 3-Inch Zipper binder, Red, D-146-RED, available from Amazon.com.)

• Dividers, with tabs to write on. (As you work through the planner, you may decide to split some of these sections up or add different ones.) I suggest starting with the following tabs:

* Creating Your Financial First Aid Kit

* Assets

* Retirement Plans

* Home and Real Property

* Income

* Debts, Loans, Expenses, and Taxes

* Insurance

* Estate Planning

* Financial Calendar & Credit Reports

• Transparent document holders (at least 25) Other items* you should consider include whichever of the following options that work best for you:

• Fire-proof safe to store important documents that need to be secure

• Safe-deposit box to store important documents

• Cloud storage account, such as Apple iCloud or Dropbox, to back up all digital financial documents

• USB (thumb) drive to store digital documents that can be kept in your safe or GET READY! binder

SIGN UP FOR THE GET READY! EMAIL NEWSLETTER

The GET READY! newsletter will provide regular tips designed to help you stay on track to complete the planner and to maintain it. It will also keep you up to date on the latest in financial preparedness. You can sign up at www.tonysteuer.com/newsletter.

STEPPING IN

At the end of the planner you'll find an Appendix item called Stepping In. This is to be used by those who have to take the helm of your financial ship in the event of your death or incapacity. Be sure to let your loved ones know where your planner and binder are so that when it is time to "step in," they will be well informed and able to take action right away.

CHAPTER 2

Creating Your Financial First Aid Kit

It wasn't raining when Noah built the ark.

— Howard Ruff

Having a financial emergency plan in the form of a financial first aid kit will benefit you in several ways. First, it will allow you to maintain quick access to your financial life. Second, it will enable you to easily gather information in the event of a disaster. And third, it will enable you to leave behind a financial first aid kit for your heirs. The kit will provide them with the information they need to quickly learn about and be able to take control of your financial commitments at the time of your passing. Whether you have limited funds or significant assets, your financial life will need to be wrapped up in the event something happens to you. Preparing now is easier than making others sort through files and piles of paper later.

The Federal Emergency Management Agency's website notes that evacuations are a fairly common occurrence in the United States. Aside from natural disasters such as fires, earthquakes, and hurricanes, people are often told to leave their homes due to transportation and industrial accidents.

Planning for an emergency is a critical step to financial success. We make plans and then life happens. It's important for us to take the time while we have the time to make a plan. Organization is the key to a successful financial plan. If you were given five minutes to gather all of your important belongings, what would you do?

WHAT TO INCLUDE IN YOUR FINANCIAL FIRST AID KIT

Most of us think about emergency planning and have a first aid kit or some basic supplies. A "financial first aid kit," however, is usually not part of the usual emergency planning process. But it should be. And your financial first aid kit needs to be in an easily accessible and easy-to-remember location so that it can be quickly collected in the event of an emergency. In fact, your kit may not make it through an emergency, so be sure to have a back-up kit on a cloud account, on a thumb drive, or in a safe-deposit box.

GET READY!

In this chapter, we will share how you can become more financially ready. You will learn about —

1. Emergency contacts. You will be making a list of all your important contacts, including family, friends, neighbors, medical providers, and advisors.

2. Personal papers and legal documents. You'll also want to compile your important documents and identification, including medical information (e.g., immunization records), passports (originals or copies), drivers' licenses, birth and marriage certificates, adoption decrees, Social Security cards, military records, insurance policies, and paperwork for pets. This vital information will enable you to access your financial accounts and property, obtain disaster relief, file insurance claims, and receive appropriate medical services.

3. Critical emergency action list. You'll create a list of critical steps to take in the event of an emergency, including an evacuation.

4. Contents of wallet. You will list everything you carry in your wallet in the event that it is lost or stolen.

5. Storing documents and valuables. You'll create an inventory of items kept in your personal safe, safe-deposit box, and storage unit.

6. Personal information. In this section, you'll add all of your background information.

7. Children and grandchildren. You'll add important information about your children and grandchildren.

8. Health (medical) information. Here's where you can keep track of your medical history, treatments, and medications.

9. Pet information. You'll add details regarding these members of your household: dates of birth, dates and proof of vaccination, names of vets, and so on.

10. Military service. Include years and branch of the service you served, pertinent details about discharge (if necessary), and decorations.

11. Memberships: clubs and organizations. Include clubs and organizations, both personal and professional, to which you belong. You can also note your place of worship and charitable organizations you support.

12. Digital life (devices and services). Write down log-in information needed to access your digital devices and services, such as your email and social media accounts.

13. Reward and loyalty programs. Here is where you can enter information about frequent flyer miles and hotel rewards programs.

Emergency Contacts

Knowing who to call in an emergency is important for you, your spouse, and your heirs. These names and numbers will be a useful resource for others who need to manage your financial ship. Table 1 will help you list all of your contacts in one easy-to-access location.

NEXT STEP

Keep a copy of this list with your secure documents and add a copy to the Creating Your Financial First Aid Kit section of your GET READY! binder.

Personal Papers and Legal Documents

Being able to quickly find your important documents will help your spouse, children, or executor in the event you become incapacitated or pass away. It will also help you during your life — when you apply for a loan, meet with your estate planning attorney, or are forced to leave your house in an emergency. You can accomplish this by fully completing this planner and assembling your GET READY! binder. Keep in mind that this is your planner, and you can complete as much or as little as you want. The more you complete, however, the more useful it becomes.

In Table 2, you'll enter the physical location of your most important documents. As you complete this planner, you'll walk through the details of these documents and where they fit into your financial life. Be sure to take your time and complete this as accurately as you can.

NEXT STEPS

As you go through this planner, these documents will be covered in further detail. Until you've completed the planner, you should keep originals of important, irreplaceable documents in a secure location, such as a fireproof safe or safe-deposit box. Copies should go in the GET READY! binder. Add a copy of this list to the Creating Your Financial First Aid Kit section of your GET READY! binder. When you have a new agreement or account, be sure to update this table.

Note

Some of the documents above have recommendations for when you may be able to safely purge a specific item. If there is no purge date, you'll probably want to keep that document forever or use your best judgment on how long to keep it. Personally, I keep items in files for seven years for any closed account with all of my tax documentations, and after seven years, I destroy the physical documents. With the ability to scan documents, I keep digital copies forever. All purged documents should be shredded to help prevent identity theft. Please note that these are just recommendations and are not legal or tax advice. You may wish to seek expert advice if you have concerns about purging a document.

Critical Emergency Action List

Disasters happen and can come in many forms, including floods, wildfires, hurricanes, and earthquakes. If you have to evacuate your home or are concerned about the safety of your home, you may need to move quickly.

In Table 3, you can add details about items that are critical to take care of in the event of an emergency, or that a trusted relative, neighbor, or friend can use if you are not home.

NEXT STEPS

Keep a copy of this list in an easy-to-find location such as on your refrigerator. Also, keep a copy in the Creating Your Financial First Aid Kit section of your GET READY! binder. Consider giving a copy (or partial copy) to a trusted relative, friend, or neighbor.

Contents of Wallet

It's a good idea to make a list of items that you carry in your wallet so that in the event it is lost or stolen, you can immediately cancel all credit/debit cards and replace the contents. Also, if you have a medical emergency, first responders will look through your wallet for identification, health information, and health insurance cards.

In Table 4, make a list of everything in your wallet.

NEXT STEPS

Make a photocopy of each item in your wallet to keep with your secure documents and add copies to the Creating Your Financial First Aid Kit section of your GET READY! binder.

Tip

Do not carry your Social Security card in your wallet. Instead, keep it in a safe place so that it cannot be used for identity theft purposes.

Storing Documents and Valuables

A safe and a safe-deposit box (usually located at a bank) are great for storing documents and valuables. However, if no one knows you have them, the valuable items you store could end up staying safe and unclaimed for a long time before they eventually make their way to your state's unclaimed property department. So be sure to share the location of your valuables with your loved ones. Also, making a list will help you keep track of what's in your safe and/or safe-deposit box.

If you have a safe and/or safe-deposit box, please complete Table 5 below. Note: In this and many other tables, the * symbol identifies specific items you will need to use in the "Next steps" segment that follows.

* NEXT STEPS

Store your original safe-deposit box agreement with your other secure documents, including an inventory of the items stored in your safe or safe-deposit box. Add a copy of the safe-deposit box agreement to the Creating Your Financial First Aid Kit section of your GET READY! binder.

Storage Unit

A storage unit is a great place to store items that you may not have room for in your home. It's important to document the details regarding your storage unit so that your loved ones will be able to access it.

In Table 6, you can add details about your storage unit.

* NEXT STEPS

Take a photo of each item and store on a secure USB drive with your secure documents, and store copies in your cloud computer account. Store your original storage unit agreement with your other secure documents, including an inventory of the items stored in your storage unit. Add a copy of the storage unit agreement and inventory to the Creating Your Financial First Aid Kit section of your GET READY! binder.

Personal Information

In Table 7, you can record all of your background information. Having this information centrally located can come in handy for many situations — such as getting a loan, purchasing insurance, and many other financial transactions.

* NEXT STEPS

Keep your original passport with your secure documents. Keep a copy of your passport in the Creating Your Financial First Aid Kit section of your GET READY! binder. Enter passport expiration date and other relevant dates on your financial calendar (page 216).

Tip

You can obtain copies of birth, adoption, death, marriage, and divorce certificates from your state health or social services administration office for a minimal fee. The Centers for Disease Control and Prevention (CDC) maintains a state contact list at www.cdc.gov/nchs/w2w.htm.

Passport or green cards: Having a copy of your passport or green card will make obtaining a replacement quicker if needed. Information about applying for renewing a passport is available at www.travel.state.gov/content/passports/english.html. You can also call the National Passport Information Center at [phone]. Information about applying for, renewing, and replacing a green card is available at www.uscis.gov/greencard.

US Citizenship and Immigration services information is available at www.uscis.gov. Naturalization documents are the only acceptable proof of citizenship for individuals not born in the United States.

Children

Whether your children are still kids or fully grown, they are part of your financial life as you may be financially supporting them, they may be taking care of you, and you may be leaving your estate (or a portion) to them.

In Table 8, enter information on all of your children. If you have more than three, please use the Notes section at the end of this chapter.

(Continues…)

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Excerpted from "Get Ready!"
by .
Copyright © 2019 Tony Steuer.
Excerpted by permission of Life Insurance Sage Press.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

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Table of Contents

Introduction, 1,
Chapter 1: How to Use This Planner, 5,
Chapter 2: Creating Your Financial First Aid Kit, 9,
Chapter 3: Listing Your Assets, 39,
Chapter 4: Organizing Your Retirement Plan, 65,
Chapter 5: Listing Your Home and Real Estate/Real Property, 79,
Chapter 6: Compiling Your Income (Earnings), 95,
Chapter 7: Organizing Your Debts, Personal Loans, Living Expenses, and Taxes, 109,
Chapter 8: Assembling Your Insurance Portfolio, 141,
Chapter 9: Estate Planning, 171,
Chapter 10: Evaluating Your Financial Readiness, 191,
Chapter 11: Staying Ready, 215,
Final Words, 227,
Appendix: Stepping In, 229,
A Note from the Author, 233,
Index, 235,
About the Author, 245,