Imagine it’s the middle of the night and you wake up to discover that your house is on fire.  Once you’ve made sure your family is safe, what do you grab next – assuming there is still time to grab something?

While photos, memories and valuables likely jump to mind in the midst of this crisis, what about the essential documents you will need to rebuild your life after they put out the fire?  Do you have copies of all your critical information accessible?  Do others have copies of your important information in case of emergency?  Do you have the contact info for all the people you will need to reach to get back on your feet?

What happens if you suddenly have a stroke and become dependent on others to take care of you or your personal affairs?  Will they be able to come in and get bills paid and work on your behalf without having to spend days figuring out where the essential documents you prepared are stored?

For these, and other reasons, it pays to have your important information organized and accessible.

Critical documents include:

  • Insurance policies
  • Brokerage account summaries
  • Medical directives
  • Powers of Attorney
  • Will
  • Location of safety deposit keys
  • Directory of key professionals
    • Attorney
    • Accountant
    • Financial Advisor

A good approach is to have all these documents available in a single notebook which is then kept in a fireproof box.  It takes only a single disaster to make you realize how important it is to assemble all your family financial records in one place.  And that’s a viable solution only if you are able to reach for those records during an emergency.  What if you were away from home and these documents all were stolen?

In the digital age, it is easy to make copies of all your financial documents, will and medical directives and store them remotely where you, and loved ones, or an executor, will be able to access them in the event that they are needed.  Unfortunately, many people postpone this important task until they face an emergency and are forced to leave their house quickly.  Do yourself, and your loved ones a favor by consolidating your documents in one location and then creating a backup copy for remote retrieval.